14 Oct Prepare A Business Plan
A new business will need money when starting up to meet the costs of equipment, premises, stock, marketing, etc. A business that does not have adequate financing will fail. It is important to identify how much finance is required and the preparation of a business plan is an important stage in this process.
A business plan is a written document that describes the business, its aims and objectives and includes financial forecasts. Preparing a business plan is a useful exercise as it forces one to think more carefully about the business idea and whether or not it has a realistic chance of success. It can help identify potential weaknesses and also gauge success.
The business plan is fundamental to external investors and they will make the decision about whether to lend money to the business on the strength of the business plan. Banks and other financial institutions will want to see a business plan before lending money to a new business