Business planAO1Task 1 section AWhat is a business plan?Organisations need to create business plans so they know what they are doing in the future. A business plan in fact is a living document which effectively means that it will be constantly be changing as the business develops. A business plan is a document that has a description of the business and what it intends to do in the future. A business plan is put in to a written format detailing their future plans. It enables entrepreneurs to know how they intend to supply the product or service. It reduces risk and helps secure investment with a business plan.
This is another definition of what a business plan is.
"A written document that details a proposed or existing venture. It will typically explain the vision, current status, expected needs, defined markets, and projected results of the business."(www.soleproprietormagazine.com/index.php)A business plan will change due to internal and external factors.
It is used to help the business to picture an idea of what is happening in the organisation and possible things that will affect the success of the company. A business plan is a tool that businesses use to plan. Things that a business plan will include are a description of the organisation, products and services they are providing, aims and objectives of the company, marketing plan, financial calculations, human resources and production. A business plan will give the company a clear picture into the different stages that they will need to go through in order to be successful.
As a business plan will include financial information it will help the business in reviewing the progress of the business. By having a business plan it will help persuade external or other stakeholders to be interested in the business which could be financially as they...