The need of a business plan in a company is obvious, as the business plan is an important tool for the improvement of its performance.
Often the banks or other organisations ask information for specific performance indicators, that every company should have. But a business plan is also required from a company by European Union in order to approve the sponsorship of a proposal.
The aim of a business plan is to locate the strong and the weak points of the management of the company,and also to propose measures of improvement of the weak points, so that the goals of the company would be easier succeeded.
Since the analysis of the existing situation has been preceded–the analysis of the internal environment (business) and the external (market)– then possible chances that the company may exploitate are located, and also possible threats, that is needed to be faced suitably.
The business plan is useful for a small and medium sized entreprise because it contributes to the below:
- Structure and Organisation of the company
- Decision making based on the aims and the politics of the company
- Recording, analysis and comprehension of the market, the consumers and the competition
- It is reference point and shows the achievement or not of the goals
- To take a loan from the banks and in other similar occasions