A business plan is an organisational tool that provides a roadmap for entrepreneurs, stakeholders, investors, lenders and potential partners to follow in the growth of an enterprise. It reviews business opportunities and risks before setting up a company. It comprehends an executive summary that explains the purpose of a business, the location, the scope and the outcome of the profit. The business plan highlights the mission statement, overall business information, products and services, financial information and future strategies. The company overview is another critical, top-level look into the structure of the corporate and its operations; the legal structure, the commerce and market that the business facilitates, and the overall sense of the company. Performing an in-depth market, industry and competitor’s analysis, allows potential stakeholders have a keen understanding of the business.
Investors are external business lenders and stakeholders who require organized transparent and dependable entrepreneurs. Entrepreneurs should have; clear, concise and consistent status updates, passion, backing up your pitch with facts and substance, and financial mindsets with the investors. This boosts investors’ comfortability and morale in a business resulting in good funding, terms of investments, growth and survival of the enterprise.
There are different types of external funding that sustains the run of a business; start-up capital aids in the setting up of the physical enterprise requirements including the rent, furniture and equipment. Working capital is necessary for the run and continuity of the business; supplies, salaries and product research and development fees. The growth and expansion of the business require extra capital funding, this helps in fending off competition and creating new market locations. This is achieved through borrowing, issuing equity capital and the net earnings from the operation of the businessOrder Now