Introducing business plans

This chapter discusses business plans. A business plan is a document that details the activities of a business and examines how and when various objectives shall be achieved. It usually consists of a commercial section, a financial section and appendices. There are numerous reasons for regularly composing a business plan. It can be used (1) to raise finance, (2) to attract investment, (3) to encourage assistance, and (4) to improve performance. A plan can be used to secure investment in the business, showing possible investors the risks involved in relation to the anticipated financial returns. While preparing a plan, it is an opportunity to step back from the day-to-day running of the business and assess it objectively. This can increase the understanding of the entire firm. Not all of the commercial and financial notes and verifying documentation can be incorporated in the business plan. Each one must vary according to its particular purpose and the person it is being written for.