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Why make a business plan?
A business plan will serve the entrepreneur as a marketing tool for the presentation of his/her business. In short, a business plan serves three functions: it will be used as means to determine future projects, it serves as a proof of how well goals have been met and finally it will help the entrepreneur in raising funds for the venture.

A business plan is first and foremost simply, a plan. In another words it is a very useful tool in assisting the entrepreneur to analyze the project before hand and prevent mistakes from happening in real life. i.e. by analyzing the project from various different points of views such as marketing or operations, the idea can be “filtered” and therefore better utilized.

Furthermore the business plan can act as a benchmark for the entrepreneur. In other words, once the project has begun, the manager can look back at the financial projections for example and point out were the actual project has gone off track, and what measures can be taken in order to correct the problems. At this point it would be very important to add that a business plan should be a dynamic project, which must be re-evaluated frequently in order for adjustments to be made. After all past strays can act as a lesson for the entrepreneur in order to avoid similar mistakes in the future or have the experience to deal with problems that could come up.

Finally the most reputable purpose of the business plan is its marketing use or put in another way, its ability to secure financing for the project in question. A professional and serious business plan adds prestige to the investee and it can be the key towards success. Most investors will not look seriously upon an entrepreneur with no business plan, whatever the idea that he presents.

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<January 2019>