AND SMALL

BUSINESS
MANAGEMENT

BUSINESS PLAN
BUSINESS PLANS
OUTLINE
 Meaning and ,Objectives of Business Plan; Importance of a Business plan

 Types of a business plan

 Elements of Business Plan;

 Business Planning Process:

 Self Audit, Evaluation of Business Environment,
 Setting Objectives,
 Forecasting Market Conditions,
 Stating actions and resources required,
 Evaluating Proposed plan,
 Assessing Alternative strategic plans,
 Controlling the plan through Annual Budget
Business planning
 Business planning is a process of developing a
roadmap aimed at achieving a business goal.
 It involves key stakeholders coming together to
brainstorm ideas and strategies and collating them
into a formal written document known as a
business plan
Meaning of a business plan
 A business plan is a document prepared by both start-up and
established companies describing the company’s core
business activities, goals and objectives and how it plans to
achieve them.
 It lays out a roadmap to achieving business goals (i.e how it
plans to achieve them)
 A business plan includes information about the company’s
products, marketing strategies and financial situation.
 Business plans are a valuable management tool for planning
and monitoring the successful operation of the business.
Meaning of a Business plan (cont’d)

 Business plans are not just used by start-ups.

 They can also be used by established companies for
long-term planning to investigate strategic
development options – growth, diversification,
acquisition and exit strategies or sale of the business.
 For start-ups, a well written business plan is
important to source capital from banks and other
lenders.
 A business plan also provides a clear direction for
business growth
Meaning of a Business plan (cont’d)

 A business plan lays out a written road map for

the firm from marketing, financial, and
operational standpoints.
 A business plan is an important document aimed

at a company's external and internal audiences.

 A good business plan helps a business focus on its

short term and long-term goals and outlines the

specific steps needed to achieve them
IMPORTANCE OF A BUSINESS PLAN

A good business plan is critical for any business:

1. It provides a roadmap for achieving success.
 they provide a clear outline of action that companies

can take to reach their goals.

2. It ensures that all stakeholders are aligned and
working towards the same goals. i.e
 A business plan provides a unified working structure
among employees and business owners.
 It keeps employees and business owners on the same page
about strategic actions needed to be taken
IMPORTANCE OF A BUSINESS PLAN

3. A business plan helps a business track its growth

and stay in line with its stated objectives.
 It helps businesses track their progress over

time
 If something is going off track the managers

can review the business plan and steer things

back in the right direction
IMPORTANCE OF A BUSINESS PLAN

4. A business plan helps businesses to:

 make more informed decisions about what

resources the business needs to reach its goals,

 the steps to take to expand into a new market and
 secure funding - for example, it provides

investors and lenders with an understanding of

the company’s goals, strategies and financial
projections.
IMPORTANCE OF A BUSINESS PLAN

5. A well crafted business plan can help startups attract

investments or get loans without a proven financial
record.
 Allows investors to see the viability of a company

6. A business plan enables business owners to predict

and plan for potential risks
IMPORTANCE OF A BUSINESS PLAN

 Although business plans are especially useful for

new businesses, every company should have a
business plan.
 Ideally, the plan is reviewed and updated periodically
to reflect goals that have been met or have changed.
 Sometimes, a new business plan is created for an
established business that has decided to move in a
new direction.
IMPORTANCE OF A BUSINESS PLAN

The important thing to remember is that just

producing a good business plan alone will not
result in a sound, profitable or prosperous
business. The business plan is just a plan.
The only way to see if it really works is to

monitor its progress at regular intervals, enabling

the business to respond to any potential problems
which may arise, and changing or modifying the
business strategy as necessary.
IMPORTANCE OF A BUSINESS PLAN

 An annual review of the company and its plan

allows an entrepreneur or group of owners to
update the plan, based on successes, setbacks,
and other new information.
 Importantly, a business plan should not be a

static document. As a business grows and

changes, so too should the business plan.
 Think of the business plan as a living document that
evolves with your business.
Reasons and justifications for developing
business plans

There are many reasons to justify the preparation of

business plans, not just for business start-up
enterprises, but as an ongoing process for established
businesses.
 Some of the reasons are outlined below:

1. the planning process establishes parameters and

specific targets which provide a yardstick against
which the progress and profitability of the business
can be measured.
Reasons and justifications for developing proper
business plans

2. to focus the mind on the purpose of the business

and what the business will offer
3. to clarify for the business proposers just what they
want and expect from the business
4. to research and identify the target markets and
customers
5. to identify the resources (staff, skills, physical, and
financial) that will be needed
Reasons and justifications for developing proper
business plans,

6. to quantify financially the costs and funding of

those resources
7. to plan the implementation of the business and the
budget implications of this
8. above all, to test the viability of the business, in
terms of markets, break-even levels, investment costs
and returns, to ensure that it can survive and grow.
Objectives of a business plan
1. To attract outside investors/ to raise investment
funding
 Startup companies use business plans to get off the

ground and attract outside investors.

 Established companies can use business plans to

raise external funding or investment to finance

various business strategies such as growth,
diversification, or to develop new products or
innovations.
Objectives of a business plan
2. It acts as an internal guide to keep an
executive team focused on and working toward
short- and long-term objectives.
 A business plan keeps a company's executive

team on the same page about strategic action

items and on target for meeting established
goals.
Objectives of a business plan
3. To secure lending from financial institutions.
 A business plan can be much helpful and instrumental in acquiring

adequate business financing

 Banks and lenders/venture capital firms often require a viable

business plan before considering whether they'll provide capital to

new businesses.
 A business plan should be prepared in such a manner that the

banks will have a clear understanding of the business

perspective that the owner has.
 The lenders will be able to get to the root of the actual vision

shared by the promoters and the methods of operation that will

be employed.
Objectives of a business plan
4. To measure the profitability and success of the
business so as to determine what dividends the
owners can take to repay(as a reward) their
investment and effort.
5. To keep business goals ’SMART’.
 ‘SMART’ is an acronym that stands for Specific,

Measurable, Actionable, Realistic, and Time-Bound

 Business goals in the business plan should be S-M-

A-R-T to achieve success.

Objectives of a business plan
6. To aid in performing business environment
analysis using tools like SWOT analysis and PESTLE
 Having perfect knowledge of the strengths and

weaknesses of your organization helps you come up

with a better insight into the realistic goals.
 The SWOT analysis also takes into account the

opportunities and threats that the organization can

come to face to face.
 This will assist you to focus on the positive factor

and take corrective actions against the negatives.

Objectives of a business plan
7. Marketing Analysis
Marketing forms an integral part of a business and so

does with the business plan.

 Marketing analysis should be focused on determining
the potential of your product or service while letting the
business owners know more about future customers.
The marketing analysis part of the business plan
should ideally provide you with a means of
understanding your industry as a whole.
Objectives of a business plan
8. Evaluating Performance
 A business plan acts as a planning, control and evaluation tool

for enhanced performance and checking the success of business

operations.
 The business plan outlines strategies, goals and objectives of the

business which act as benchmarks or standards for evaluating

performance. It also comes with a financial part to it.
 The strategies, goals and the financial part can be used for

comparing the actual performance with the estimated one.

 If any of the strategies are found to be unsuccessful in achieving

the relevant results, it may be a perfect idea to ditch the strategy

or take corrective actions.
TYPES OF A BUSINESS PLAN
Business plans can fall into two different categories—traditional or
lean startup.
 the traditional business plan is the most common.

 It contains a lot of detail in each section.

 It tends to be longer than the lean startup plan and require more

work.
 Lean startup business plan, on the other hand, is not as common in

the business world because

 It is short—as short as one page—and lack detail.

 It uses an abbreviated structure that highlights key elements.

 If a company uses this kind of plan, it should be prepared to

provide more detail if an investor or lender requests it.

TYPES OF A BUSINESS
PLANS
 Lean business plan is an option when a company
prefers a quick explanation of its business. The
company may feel that it does not have a lot of
information to provide since it is just getting
started.
 Sections can include: a value proposition, a
company's major activities and advantages,
resources such as staff, intellectual property, and
capital, a list of partnerships, customer segments,
and revenue sources.
Elements or Components of a Business plan

Businesses may create a lengthier traditional

business plan or a shorter lean startup business
plan.
Business plans, even among competitors in the

same industry, are rarely identical, however,

they tend to have the same basic elements.
The plan should include an overview and, if

possible, details of the industry of which the

business will be a part.
Elements or Components of a Business plan

 It should explain how the business will distinguish

itself from its competitors.
 It should outline all the projected costs and possible

pitfalls of each decision a company makes.

 A plan also states how the business intends to

achieve its goals.

 While it is a good idea to give as much detail as

possible, it is also important that a plan be concise

to keep a reader's attention to the end.
Elements of a Business plan
The essential elements or components of a business plan are as
follows:
1. Executive summary,
2. Company description,
3. Products and Services
4. Market analysis,
5. Market Strategy and Implementation,
6. Management Team
7. Financial Plan, and
8. Appendix (which include documents and data that support the
main sections).
Elements of a Business plan
 Executive Summary: A quick overview of your plan and entices investors
to read more of your plan.
 Company description: Describes the ownership and history of your
business.
 Products and Services: Reviews what you sell and what you’re offering
your customers.
 Market Analysis: Describes your customers and the size of your target
market.
 Market Strategy and Implementation: Provides the details of how you
plan on building the business.
 Management Team: An overview of the people behind the business and
why they’re the right team to make the business a success.
 Financial Plan: A complete set of forecasts including a Profit and Loss
Statement, Cash Flow Statement, and Balance Sheet.
 Appendices
Elements of a Business plan:
1. Executive Summary

1. Executive summary:
 Is quick overview of your business plan that entices investors to read

more of your plan.

 It provides a brief description of the company with respect to the

following:
(a) brief introduction of the business:
 For start-up business:
 a brief outline of type of business proposed and
 proposed date of commencement of trading
 For already established business, relevant history and
background information
Elements of a Business plan
1. Executive summary (cont’d)
(b) Name of business and trading names;
leadership - names of managers and owners
including personal parameters such as full time or
part time operation, business hobbies, lifestyle
factors etc
(c) trading status/ legal identity i.e whether it is a
company, sole trader, partnership, cooperative
with details of shares and capital structure
Elements of a Business plan
1. Executive summary (cont’d):
(d) Geographical location/-registered address, brief details
of premises
(e) Operations - Range of products/services to be offered
(f) Brief summary of anticipated customers/target market
and their distribution
(g) Statement of viability – why I/we will succeed
(h) the business mission statement along with goals and
vision
Elements of a Business plan:
2. Company Description

2. Company description
 This section describes the ownership and historical

background of the business.

 It provides a detailed description of the following:

(a) History of the business, including date of

establishment/incorporation, date of commencement of
business operations and Trading status or legal identity
Elements of a Business plan:
2. Company Description

2. Company description (cont’d)

(b) the ownership/ business proposer(s) including
 names of your business's management/company leaders,
 their background experience, qualifications, skills and knowledge
 their responsibilities within the business and why they are suited to

the business
(c) the legal structure of your company.
 Trading name
 Chosen means of operation (limited company/sole

trader/partnership/community interest companies such as

cooperatives etc), and reasons for choice
Elements of a Business plan
2. Company description (cont’d)
(d) details of your organization strategy, outlining its
mission, vision, goals/objectives and strategies/tactics
 The business objectives section reveals how you are

going to execute your vision and mission and bring

them to reality.
 The most important components of your business

plan are your business goals and objectives.

Elements of a Business plan
2. Company description (cont’d)
 Without these, your business plan is simply empty.

 Well-chosen goals and objectives keep a new

business on track.
 As a rule of thumb, your business goals and

objectives must be SMART.

 That is, they must be Specific, Measurable,

Actionable (i.e Attainable/Achievable), Realistic,

and Time-based (i.e Time-bound).
Elements of a Business plan
2. Company description (cont’d)
(d) information about the industry and target market by
outlining
 major competitors within the industry,
 your team's experience in the industry,
 and what distinguishes your company from the

competition
(e) human resources requirements including number of
employees, their skills etc
 Elements of a Business plan:
3. Description of Products and Services

3. Products and Services

 This section provides details of the products and

services your company offers to your customers.

 Includes all relevant information about your
products and services such as
 how you plan to manufacture them,
 how long they can last, (expiry dates)
 what needs they may meet and
 how much you project it might cost to create them.
Elements of a Business plan:
4. Market Analysis

4. Market Analysis
 The goal of this section is to clearly define your

target audience (customers) so that you can make

strategic estimations about how your product or
service might perform with this audience.
 The purpose is to research and identify a company's

primary target audience and where to find this

audience.
Elements of a Business plan:
4. Market Analysis

4. Market analysis (cont’d)

This section describes
(a) The company’s customers/target audience, including their

geographic location and demographics of the target audience

(b) the size of company’s target market/ market share and how

easy or difficult it may be to grab market share from competitors

( c ) a company's competition (competitive analysis) - how the

company fits in the industry, along with its relative strengths and
weaknesses.
(d) expected consumer demand for a company's products or

services

Elements of a Business plan|
4. Market Analysis

4. Market analysis (cont’d)

(e) marketing plan
 Marketing plan will show:

 Schedule of fees/prices and charges for products or

services
 Statement of quality standards and customer service
policies, and how these will be monitored to maintain
and improve services
 Monitoring of sales, and changes in marketing trends
Elements of a Business plan:
4. Market Analysis

4. Market analysis cont’d

 Competitive analysis details a company's competition and how the

company fits in the industry, along with its relative strengths and
weaknesses.
 The competitive analysis should clearly:

 outline a comparison of your organization to your competitors.

 Outline your competitors' weaknesses and strengths and how you expect

your company might compare to these.

 Include any advantages or distinctions your competition has in the

marketplace.
 explore what makes your business different from other companies in the

industry, along with any potential issues you may face when entering the
marketplace, if applicable.
Elements of a business plan:
5. Marketing Strategy and Implementation:

5. Marketing Strategy and Implementation:

 This part of your business plan covers the specifics of how you

plan to market and sell your products and services.

 This section describes:

(a) anticipated marketing and promotion strategies i.e

 how the company will attract and keep its customer base,
also spells out advertising and marketing campaign plans and
the types of media those campaigns will use.
types of media may include social platforms such as
facebook, wats-up; or radio and TV; or print media
(newspaper and other industry publications; Road shows;
banners; fliers etc
Elements of a Business plan
5. Marketing Strategy and Implementation (cont’d):
 (b) sales strategies
 how it intends to reach the consumer by outlining a clear
distribution channel
 Pricing plans for your company's products and services
 (c) organization's unique selling proposal
 How you plan to get your products and services in front
of your target audience
 Reasons for your target audience to purchase from your
company versus your competition
Elements of a business plan:
6. Management Team

6. Management Team
 This section provides
(a) an overview of the management team describing the people
behind the business (company management) including their
qualifications, roles and responsibilities of each team member
and why they are the right team to make the business a success.
(b) the organization’s structure, describing levels of
authority, divisions/departments to perform the
organization’s operations and the tasks involved in the
operations
( c ) human resources requirements
Elements of a Business plan
7. Financial Plan:
 The financial section of your business plan explains
(a) how you anticipate to generate revenue and the
costs for operations
(b) funding requirements:
 the sources and amounts for that funding,
 what the funds will be used for and
 how the business plans to repay the funding
 New businesses will include targets and estimates for
the first few years plus a description of potential
investors.
Elements of a Business plan
7. Financial Plan (cont’d):
 (c ) financial forecasts comprising a pro forma Profit

and Loss Statement, Cash Flow Statement, and Balance

sheet
 (d) analysis of these statements (i.e key financial ratios)

and a cash flow projection.

 (e) Other financial information may include a break-

even analysis which shows the level of sales needed to

cover all expenses
 (f) A budget is a necessity at this point
Elements of a Business plan
7. Financial Plan (cont’d)
Budget:
 Every company needs to have a budget in place.

 This section should include costs related to

staffing, development, manufacturing, marketing,

and any other expenses related to the business.
 It should also include anticipated levels of

production and sales to enable calculate revenues

 Elements of a business plan
8. Appendices
 The last section of your business plan provides any

extra information to further support the details

outlined in your plan.
 You can also include exhibits and appendices to

support the viability of your business plan and give

investors a clear understanding of the research that
backs your plan.
Elements of a business plan
8. Appendices (cont’d)
 Common information to put in this section includes:

 Resumes of company management and other stakeholders

 Marketing research (including marketing plan)
 Permits (e.g business licences) and Certificates (e.g Registration
Certificate, Malawi Bureau of Standards Quality standards
certificate/number)
 Proposed or current marketing materials
 Relevant legal documentation (eg company registration, Articles of
Incorporation)
 Product specifications - Pictures of your product
 Financial documents
Elements of a Business plan
Conclusion
 When you write your business plan, you don’t have to strictly

follow a particular business plan outline or template.

 Use only those sections that make the most sense for your

particular business and its needs.

 Traditional business plans use some combination of the

sections above.
 While there are templates that you can use to write a business

plan, try to avoid producing a generic result.

 Business Plan length varies, as does the type of plan, but a

document usually ranges from 15 to 20 pages.

BUSINESS PLANNING
PROCESS
 Planning is crucial to the success of any business
 You can create a business plan for a new

business opportunity or an existing business

 When starting a new business, a business plan

can help in securing funding

 Once the business is underway the plan can

function as a management tool and guide the

growth and development of the business.
BUSINESS PLANNING PROCESS
INTRODUCTION

 A major reason for a business plan is to give owners

a clear picture of objectives, goals, resources,
potential costs, and probable risks that can be faced
by the business or business decisions.
 A business plan should help them modify their

structures before implementing their ideas.

 It should allow owners to project the

type of financing required to get their businesses up

and running.
BUSINESS PLANNING PROCESS
INTRODUCTION

 A well developed plan can help businesses in

several ways including:
 Describing the business
 Outlining the business’ vision,
 Introducing and attracting the business to investors
 Supporting loan and grant applications
 Tracking progress and growth
 Aiding decision making
 Keeping activities in line with business objectives
BUSINESS PLANNING PROCESS
INTRODUCTION

 Guiding the allocation of resources

 Providing economic or financial projections
 Aiding responses to change
 Setting out marketing policies and
commercial strategies
 Facilitating the development of future
strategies
 Identifying and analysing risks
BUSINESS PLANNING PROCESS
What is a business planning process?

 The business planning process refers to the

steps an organization takes to identify its
current situation, and outline its business goals.
 A business plan needs to answer three straight
forward questions:
 Where are we now?
 Where do we intend going?
 How do we get there?
BUSINESS PLANNING PROCESS
1. Where are we now (analysis of the current situation)

Where are we now? (analysis of current situation)

 An analysis of the current situation will include:

 historical background information relevant to the business’s current

situation that includes
i) The nature of the business (the business concept/ purpose of
business)
(ii) date of establishment,
(iii) The business identity (name and location/registered business
premises),
(iv) The Key people (management and leadership)
(v) the market place, i.e target market, market share and
(vi) The competition
BUSINESS PLANNING PROCESS
2. Where do we intend going? (future direction)

Where do we intend going? (future direction)

 the future direction that is intended for the business must be

clear and precise to enable others share its vision for the future
 the focus is on strategic direction and strategic influence

 Outline qualitative objectives as well as quantifiable targets to

enable clarify and measure progress towards the intended goals.

 Identification of likely changes to the business environment

through SWOT analysis in order to build on the opportunities

outlined and assess possible threats.
 Also identify internal strengths and weakness
BUSINESS PLANNING PROCESS
3. How do we get there? (implementation of aims)

How do we get there? (implementation of aims)

 This focusses on the implementation of the plan

 It involves

 Implementation of accepted aims planned by all

interested parties
 Marketing plan- Implementation of plans for
marketing and managing the business
 Money - Detailed financial analysis
 Management of resources
BUSINESS PLANNING PROCESS:
STEPS IN BUSINESS PLANNING PROCESS

 A business plan is just one step of the business planning process.

What are the steps involved
 Most organizations follow similar steps when creating a business

plan
 The planning process follows several steps including:

 1. Conducting Research
 2. Setting/Defining goals and objectives
 3. Prepare your financial forecast/Identify resources
 4. Create the plan
 5. Implement the plan
 6. Evaluation, review and control
Steps in the Business Planning process
What does each step involve

1. Conduct Research
 The first step is to conduct market research.

The research should respond to the following questions:

 What is the current state of your business?

 What are the current industry trends?
 What is your competition doing?
 The research will enable you to understand
 the target market,

 Existing customer base

 Competition

 Industry trends

 Costs of the business

Steps in the Business Planning process

1 Conduct Research (cont’d)

 This research can help the business identify

opportunities and threats and refine its

strategy accordingly
 You may want to complete a SWOT analysis for
your own business to identify your strengths,
weaknesses, opportunities and potential risks as
this will help you develop strategies to highlight
your competitive advantage
Steps in the Business Planning process

1 Conduct Research (cont’d)

 This can be done by conducting intensive customer

interviews and understanding their motivations for

purchasing goods and services of interest.
 The research will also help to dig deeper into decisions

on:
 an appropriate marketing plan,

 operational processes to execute your plan, and

 human resources required for the first five years of the

company’s life.
Steps in the Business Planning process
What are your business goals?

2. Define the Business goals/ Develop Strategies

 Based on the market research the business can

 formulate a vision for the company’s future,

 define the goals that the business wants to achieve and
 develop strategies to achieve its goals.
 Goals are the ultimate successes that you plan to achieve after
some activity or practice.
 objectives and strategies specify what steps to take and when
you should take them.
 These strategies should be aligned with the business’s strengths
and opportunities and address any weaknesses or threats
BUSINESS PLANNING PROCESS
2. Setting goals and Objectives

 Goals tend to be more qualitative, while objectives are

usually quantitative.
 These goals should be specific, measurable, achievable,

relevant and time bound (SMART).

 when establishing your goals and objectives try to

involve everyone who has roles to play in the

achievement of those goals and objectives
 Having well-defined goals and objectives for your

business means forming a road map for your company’s

future.
3. Identify Resources (Calculate Your
Financial Forecast )

3. Identify Resources ( Calculate your Financial Forecast)

 The third step is to identify resources that the business
needs to achieve its goals and translate them into a
financial forecast.
 This is one of the most valued steps in the business
planning process as it provides a straightforward summary
of what a company does with its money, or how it grows
from initial investment to become profitable.
 These resources could include finances, personnel,
equipment and facilities
3. Identify Resources (Calculate Your Financial
Forecast )

 All of the resources (activities) you choose come at

some cost and, hopefully, lead to some revenues.
 A financial forecast will sketch out the financial
situation by looking at whether you can expect
revenues to cover all costs and leave room for profit
in the long run.
 This involves developing financial assumptions and
start-up costs
3. Identify Resources (Calculate Your Financial
Forecast )

 A full set of financial statements provides the details about the

company’s operations and performance, including its expenses
and profits by accounting period (quarterly or year-to-date).
 Financial statements also provide a snapshot of the company’s

current financial position, including its assets and liabilities.

 All missions and strategies need money to succeed.

 A smart budget will help you to regularly review your expenses

and make financially beneficial decisions.

 You may need to take a wide variety of factors into account

when setting up your budget

4. Create a business plan

 With financials more or less settled and a

strategy decided, it is time to draft through the
narrative of each
component of your business plan.
The strategies can then be translated into a

formal business plan which outlines the

business’s core activities, objectives and
roadmap to achieving its goals
4. Create a business plan
The business plan should include detailed information
about the products or services, market analysis,
marketing and sales strategy as well as financial
projections
5. Implement the plan

5. Implement the plan

 Once the business plan is complete the next

step is to implement it.

 This involves executing the strategies and

tactics outlined in the plan and monitoring

progress towards the business goals.
6. Evaluate and adjust

6. Evaluate and adjust

 The final step is to evaluate the progress towards the business

goals and adjust the plan as needed.

 This ensures that the business remains on track to achieve its

goals and adapts to changes in the market or business

environment
 Success of the plan is measured by the results.

 Therefore, provision for adequate follow-up should be

included in the planning.

 Review of plans at regular intervals is essential which helps in

taking corrective action, if necessary.

6. Evaluate and adjust performance

 This is an essential step towards achieving the long term

survival of the organization as a whole.
 The ability and provision for such a control and evaluation
procedure are what offers you a great advantage in checking
the success of the operations.
 This way, you will be able to detect issues like production or
delivery delays, or even increasing production costs.
 Make your business plan a living document that you and
your staff can frequently update and improve. Consider
reviewing it monthly to track your progress and readjust
your strategy as necessary.
Step 6 Evaluation ,review and control

 Importantly, a business plan should not be a static

document.
 As a business grows and changes, so too should the
business plan
 An annual review of the company and its plan
allows an entrepreneur or group of owners to update
the plan, based on successes, setbacks, and other new
information.
Advantages and Disadvantages of a Business plan

 While creating a business plan is a critical step in

launching and running a successful business, it is
important for managers and business owners to
remember that there can be drawbacks.
 Advantages and disadvantages of a business plan
are as follows
ADVANTAGES OF A BUSINESS PLAN

Advantages of a Business plan

1. Provides a roadmap for achieving business objectives
2. Helps secure funding and attract investors
3. Allows for more informed decision-making
4. Promotes a harmonious working structure among employees and business owners
5. Helps track business progress
6. Provides a framework for measuring success
7. Helps mitigate risk
Disadvantages of a business plan
Plan
Disadvantages of a Business plan
1. Can be time-consuming and require significant effort to create

2. Business plans may become outdated quickly and need to be regularly

updated
3. May lead to overconfidence in the business’s success

4. Can be limiting and prevent businesses from adapting to changing

market conditions