USERS OF A BUSINESS PLAN

 HERE ARE USERS OF A BUSINESS PLAN

• Internal users

1. The entrepreneur and management

It enables the entrepreneur to be aware of the variables that can affect the success or failure of his/her business.

2. Employees

Business plan shows each employee’s duties and responsibilities which help them to work towards accomplishment of set goals/targets.

Therefore workers use it to know where the business is going and their role in it.

• External users

1. Financiers

These include banks, individuals, investors, e.t.c that require the business plan to enable them understand the business itself, the type of products/services it is planning to produce, the nature of the market and qualifications of entrepreneur and management team (staff).

2. Suppliers

With it, suppliers can extend trade credit which is a source of funds to the business. A well-presented business plan can be helpful in gaining the supplier’s trust and securing favourable credit terms.

3. Government

Government departments such as NEMA and tax authorities require a business plan to monitor and control the various activities of the business, for instance, environmental protection against pollution.

4. Customers

A well presented business plan assures customers and if they are convinced of the business’s continued existence, they gain confidence and become loyal to its products.

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