Article submitted by Andrew Erickson of Business Planz
Starting a business is one of the most important investments one can make in their life. This is because should they lose their jobs, it is in business that they can earn a living. A business plan is therefore a formal statement that sets out the goals and objectives of the business. It is therefore very important for any business to flourish. This will help the business remain within the truck and carry out their initial plan. Writing business plan always helps people to think of the objectives of their businesses, this helps in deciding whether it is profitable investments.
In case one needs to take a loan from the bank or other financial institutions to boost their business, it is the business plan that these institutions will require for them to approve the loans. It may also be required when one needs to get apartment to carry out their business. It is during the initial stages of starting a business that one needs to draw business plan, this helps them identify the risks that this opportunity may present and possible solutions to such problems should they arise.
The processing of drafting ones business plan may also help them come up with new business ideas that they never thought of before. Should the business plan to merge with similar businesses for the purpose increasing its profit, its plan may become very important in determining the terms of this merger. This helps reduce the conflicts among business merging together. Retaining ones customers is one of the most important activities of any business, this is because it is the customers who buy goods and services for the continuation of the business. These customers may request to see the business plan so as to be sure that the business is a serious one. These factors may try to answer the question, why write a business plan.