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Experts say that a strong business plan is one sure step in the direction of success. So, what is a business plan in the first place? It is defined as a document that outlines the functional and financial objectives of a business. It also contains details of the budget involved and the goals to be achieved.

A valuable source of information about your business that may be required by third parties ; Improved use of your company personal resulting from participation in the business planning process ; Increased employee motivation ; Increased profits and sustained growth.

Drawing functional Plan: After positive result form the feasibility study, functional plans are drawn up. Some scholars and writers prefer to include feasibility study with functional plan but the two have been taken separately. Whereas only after the feasibility study can one go into the derails of drawing up functional plans which would determine the strategies for all the operational areas : marketing, Finance and production.

The business plan serves several purposes: Enables the entrepreneur to think through the business in a logical and structured way and to set out the stage in the achievement of the business objectives ; Enables the entrepreneur to plot progress against the plan ; Ensures that the resources needed to carry out the strategy and the times when they are required are both identified ; Preparing the business plan ensures that the entrepreneur has thought through the crucial aspects of the venture ; It is a means for making all employees aware of the business direction ; It is an important document for discussion with prospective investors and lenders of finance ; It links into the derailed, short-term, one-year budget.

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