Circumstances under which an entrepreneur would prepare a business plan

Circumstances under which an entrepreneur would prepare a business plan

• When attracting funding- it is used to attract funding from potential investors and lenders as is justifies the viability of the business.
• When one wants to avoid mistake- it minimizes the impact of disruption of business activities as a result of unforeseen circumstances b7y anticipating challenges and possible setbacks.
• When one wants a blueprint for starting and operating a business.-It guides the owner/management‘s decision and actions on day to day business.
• When a tool for evaluation is required – It is used to evaluate business performance to see if it‘s achieving the set objectives
• When the owners wants to determine the finances required to start the business
• When identifying customers. It enables one to target appropriate customers to buy the product