Pato Naa

In: Business and Management

Submitted By cybersony143
Words 2506
Pages 11
UNIT 5: INDUSTRIAL DEVELOPMENT

BUSINESS PLAN
Set of documents prepared by a company’s management to review its operational and financial objectives for the future (usually one to three years) and to show how they will be achieved. It serves as a plan to guide the firm's policies and strategies, and is continually modified as conditions change and new opportunities and/or threats emerge.
The business plan process is simply the steps you go through and actions you take when producing a business plan. In effect, it describes how you produce your business plan. While most people focus on the ‘final output’, i.e. the business plan itself, the business planning process is extremely important for entrepreneurs.
PROCESS OF BUSINESS PLAN
The process of producing a business plan forces entrepreneurs to examine areas of their business that typically may not be subject to much scrutiny. For example, entrepreneurs do not tend to routinely produce cash flow forecasts, so the requirement to produce one as part of the business planning process forces them to consider the impact of cash on their business.
The business plan process typically begins with an event, be it the need to produce a business plan when seeking investment, or to obtain short-term financing from a bank. Once a business plan is needed, the entrepreneur has to then decide how they are going to go about producing the plan. They will need to undertake the following: 1. Decide who is going to write the plan (if not themselves). 2. Gain an understanding of what a business plan contains. 3. Decide how to write their plan (typically using business planning software such as Business Plan Pro). 4. Ensure that they know the content for the various sections of the business plan. 5. Collaborate with partners or with colleagues from various departments (if the plan is for a bigger firm). 6.…...

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