Business Plan is a written document that very clearly describes the entrepreneurial idea as well as the requested resources and methods for its realization. The plan provides basic information about the investor, his financial position and expected changes after the investment. It demonstrates the effectiveness of the investment, through the possibility of the return on investment and earnings. Business Plan defines goals and a value of the investment, sources of financing and projections of future cash flows and operating results over a specific period.
Creating a Business Plan starts with an idea. Defining a goal is a starting point for writing it as well as an end answer that must be clear to anyone who reads it, at the same time. A quality plan not only serves to those who are starting their business venture or just upgrading an existing one, but is often the source from which stakeholders evaluate the risks and cost effectiveness. These are banks but also other investors, business partners or suppliers.
A Business Plan is a document that develops an entrepreneurial business idea, evaluates the enterprise’s operations in the future; which describes what is intended to be done, where, how, when and with what expected results. The Business Plan thoroughly explains the planned investments, evaluates business variants, their efficiency and risks of the business venture.
These plans are made for both start-ups and mature companies looking to invest in a new project, business development and growth. For new companies, the Business Plan assesses whether the company has opportunity to grow and develop. Future information is evaluated on the basis of detailed market/product/service/competition analysis. In the case of existing companies, information about the past operations are entered into the economic-financial projection and the profitability of planned investment can be estimated and evaluated on this basis.
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