What Is The Importance Of A Business Plan Essay

717 Words 3 Pages
It’s important and necessary to have a business plan, no matter how small or how big. Running a business is very hard and requires a lot of details and having ideas, sort of a rough draft. A business plan serves as a road map and attracts capital through loans and investments. You will never know if your business will succeed or not but having a vision of what your business is going to be gives a good chance.
The first step in a business plan is being able to write a business description for your business plan. Your business description should let the people looking at it know what kind of business you are having. Also before making a business plan you should have a mission statement so you at least have an idea of what you’ll want. Of course
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Yourself first putting everything together, the employees you hire to actually make the pieces come to life, and the compensation you will give them to encourage good workmanship. There are vendors and outside resources as well as the accounting and bookkeeping part of your business. It’s important to keep these factors into check because it is what keeps your business running.
Fifth step is risks and probably the scariest any future or current business owner has when thinking about running a business. In any business there are going to be risks and problems, this is important because you should be able to identify these risks before actually starting your business. Being able to have solutions and backup plans for these problems and risks is key.
The last and the hardest part for every business owner has to deal with is the financial part. Having a business plan and including a financial management part is vital, you should be able to have realistic ideas about your business and the amount of money that is going to be going in and out. It also important to take care of your finances, hire a tax advisor as well a lawyer. Use good accounting system software’s like QuickBooks to keep up with things such as cash flow, revenue, payroll, etc. Having a pro forma profit and loss statement and balance sheet also keeps finances in check and see where the money is going

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