Objectives of Business Plan

                                                        The Objectives of Business Plans are as follows :

• To give directions to the vision formulated by the entrepreneur. Direction giving is the basis of starting a business if the direction is good then it will flow smoothly and if the direction is not good then there is a chance of failure of your business.

• To objectively evaluate the prospects of the business. You can calculate its future perspective that how much growth can happen with this plan.

• To monitor the progress after implementing the plan. 

• To persuade others to join the business. You can show your business plans to others and ask them to join if you want a partnership in your business.

• To seek loans from a financial institution. Everyone can have an idea but do not need to have the required money to implement the plan. So, once you structure the plan you can have an idea of how much money is required? What are the sources of financing money to you? Where can you apply for loans? etc.

• To visualize the concept in terms of market availability, organizational, operational and financial feasibility. 

• To guide the entrepreneur in the actual implementation of the plan.

• To identify the strengths and weakness of the plan. When you have the complete design and planning for your business then you can easily identify its strength and weakness so that you can implement it in a better way.

• Indicates the desired characteristics of business in future.

• To identify challenges in terms of opportunities and threats from the external markets. The challenges may vary for different products like depending on the availability of raw material, space required, permissions required etc.

• To clarify ideas and identify gaps in management information about their business, competitors and the market. 

• To identify the resources that would be required to implement the plan. Identifies the goals and objectives most crucial to achieving the shared vision of the future.

• To document ownership arrangements, future prospects and projected growths of the business venture. Preparing a business plan is not an easy task you need to get the documents ready also. Again different kind of business requires a different kind of documents.

I hope you like our best collection of  "Business Planning Process". Thank you so much for reading do share if you think it is useful for you.