RATIONALE FOR WRITING A BUSINESS PLAN

 The following are some of the reasons for writing a business plan;

1. To test the feasibility of the business idea. It enables the entrepreneur to establish whether the idea for starting the business is possible or not.

2. To give the business the best possible chances of success. It encourages the entrepreneur to pay attention to both the broad operational and financial objectives of the business and details such as budgeting and market planning.

3. To secure funding such as loans. The business plan enables the entrepreneur a much better chance of getting the money he/she needs to continue operating.

4. To attract investors. Investors normally need a well-written document they can take away and study before they make any investment commitment.

5. To make business planning manageable and effective. It helps an entrepreneur to see what goals have been accomplished, what changes need to be made, or what new directions the business should take.

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