Importance of a business plan and how to draw it.

What is a business plan.

In short a business plan is a written document that is used for the development of the business.In these plan the details of the product , cost and revenue is included.
In short a business plan is a written document that is used for the development of the business.In these plan the details of the product , cost and revenue is included.

Why a business plan is important for a business ???

1 . A business plan will help the business to prevent wastage of resources which will save business money thus reducing production cost.

2. The most important part of a business plan is that it gives the owner and the employees a sense of direction . These means everyone has a goal to work towards.

3. The owner can use the business plan to convince the bank manager to give loans for the business.

Now you are excited right ??? Want to make a business plan ???

Than you use these format to draw up your business plan .

Format of a business plan

1. An executive summary : It is the first part of your plan where you will provide a short summary of the whole plan .

2. Elevator pitch : It is a small paragraph that will highlight the uniqueness of the business .

3. The business and its objectives : Here you need to include the long term objectives of the business .

4. Business opportunity : You need to highlight the what type and range of product you make .

5. The market : Here you need to show the size of potential customers in your area .

6. Human resource : Than you need to add details of the number of workers work ,  and their salary

7. Premises and Equipment : It will contain the list of all fixed assets that will be needed for the business.

8. SWOT : These stands for Strength,Weakness,Opportunity and Threat. These four highlighted point of the business might also be included in your plan.