Business plan is a system of arguments that prove success of suggested business. It is a very specific document. You have to prove with economic precision that put up money will be given back with profit. In this regard, a business plan is a technical document. On the other hand it is also an important element of firm’s image. Talking to potential investors you should do justice to yourself.
As economics is very changeable, it is very important to take responsive steps in time. Business planning helps to take a decision, allows analyzing all the complex of future business operations. Planning of further business development gives an opportunity to minimize internal and the part of external risks, to save management flexibility. As the work without a business plan is a forced response for occurred events, then the activity on the basis of the plan is a management response for due and schedule events.
Any construction is designed in paper at first. A house, a plane, a spaceship begin with drafts and estimations.
A business plan is plan of your business construction which requires corresponding attention. Just as a draft, a business plan is thoughts before action. It allows checking all for and against, before starting the business. As a rule, a company turns to its business plan when changes are needed, but the company’s resources are insufficient. The very important factor which have impact on the fate of address about necessary resources is the quality of given materials. About 90% of proposed projects are rejected at a business plan consideration stage. After a visit to a bank and talk with an ordinary clerk, 95% of business plans are declined. In fact everything depends on your first visit.
A business plan is also of great importance to management personal, as it determines business’s goals, ways and terms of their achievement.
The main causes of a business plan compiling are the following:
1. It is an opportunity to discover problems before they arise. If you think over to modify your business, you need a business plan to look at yourself from the outside. A new business always supposes some prognosis of events’ succession. You should try to understand the main business’ directions, its strengths and weaknesses, to estimate costs. It is necessary for defining the situation and getting an idea about business development trends.
2. It is almost impossible to get an investment without a business plan.
3. A business plan is a standard document to get to know a business.
4. A business plan is a control and management tool.
A business plan is a starting point and a basis of planning and executive activities, the one source of strategic information about the business. A business plan has a direct impact on enterprise activities’ results. | 
