The business plan is a blueprint or map that guides the manager. Likewise, in the theater the actors need a script to learn and guide, so that on the day of the show the representation is flawless, the manager uses the business plan as a guide.
In management, it is said that there is a problem when the actual result is different than expected. Similarly, if I drive a car with 20 years without having made oil changes or periodic reviews and car crashes during the trip, from a management standpoint this does not pose a problem, because such an event would be expected. It would have been a problem, if given vehicle was new and maintenance was carried out and such failure occurs during the trip, because such an event was not expected.
Thus, the business plan, which relies on a set of assumptions such as financial, marketing, commercial and costs, allows to draw a map and act accordingly in the perception of any deviations of the route plotted.
The Business plan is a tool that allows a greater focus of the entrepreneur and demonstrates the viability of the business by warning the existence of barriers to success during its implementation and operationality.
The business plan requires a preliminary investigation, critical thinking around the complexity of the environment where our organization is inserted, while allowing the anticipation of problems and introducing corrections as the company’s operation goes forth.
The business plan explains how the business will develop, describes what to sell, who are the potential customers, where they can be found and what is needed to succeed.
A good business plan also attracts potential investors and convinces financial institutions to grant credit if necessary and helps attract reliable vendors.
In summary, the business plan explains our business in a presentable way, predicts the development of the company and how the organization will generate wealth.