Answer to Question #233575 in Management for khanyi

Question

your uncle overheads people at work saying that if you want to start a business you should first draw up a business plan. Explain to him why it is desirable to draw up a business plan.

Answer 1

A business plan is a document containing well-organized data on marketing strategies, competitive analysis, logistics, and cash flow projections.

Firstly. Business plan help in decision-making. A well-organized and detailed business plan enables the manager to make excellent decisions ahead of time (Lindzon, 2019).

The second importance of a business plan is that it help manager easily identify the kinks, gaps and any flaws in the system. Then they can take steps to correct and fill it early.

A business plan enables the manager to iron out clearly the objectives of starting that business. Having clear objectives in the plan enables the system to flow of the track and maintain the projected base

A clear business plan enables the management to prevent possible risks that can be incurred on uncontrolled operations and quick decisions.

A business plan also aligns the workers to their specific positions, thus easy handling of operations

Reference

Lindzon, J. (2019) The importance of a business plan. Waveapps.com.https://www.waveapps.com/blog/entrepreneurship/importance-of-a-business-plan