1. To evaluate the project viability and growth potential
Everyone in company will use the information contained in the company's business plan, whether to set performance targets, guide decision making with regard to on-going operations, or assess personnel performance in terms of the ability to meet the objectives of the business. Business plan also help entrepreneur or business manager identify and focus on potential problem areas, both inside and outside the company.
2. To apply for loans from the financial institutions
The business plan shows the financial strength of the company especially when applying for loans and to convince the investors or financial institutions for providing funds. The business plan will make it easier for investors or financial institutions to evaluate the company's ability to handle more debt or other equity financing. If the business plan well written, they will be more confident in lending to the company's business activities.
3. To act as a guideline for the management of the proposal business
The business plan is a guide line for the organization in setting, planning, managing, handling and controlling our business for day-to-day management, budget, financial forecast, strategies, target market and even long-term goal. it is also a master plan of an organization that necessary to calculate the effectiveness on running the business. it can help business leaders focused o business growth, mission and organizational's growth.
