BUSINESS PLAN_A GENERAL OVERVIEW

There are few parties who need the business for few reasons. Business plan is very important
as it give important info for the parties.
a) Entrepreneur
Able to analyze the strengths and weaknesses of the company as well as threats &
opportunities that would be faced in future
Act as a guide of the business from setting business objective to establish daily
priorities
b) Shareholders
They need business plan to critically view the draft plan
They review the business plan to make decision whether to become the shareholder
of the company or not
c) Bankers/Creditors/Financial institutions
Business plan is needed when applying for a business loan
Most bankers need the business plan to review whether the entrepreneur qualified
for the loan or not
d) Investors
The business plan should explains the reason why the investors should invest in the
business and how the capital provided will be used by the entrepreneur
When a business plan is prepared accordingly to information given, the investors will
gain confidence in the company
e) Management/Employees
To communicate with the management team
The management will come up with strategies and objectives for the business
f) Clients/Customer
To convince the organization’s clients of the business ability and capability to fulfill
the job contract
4 | P a g e