A business plan is a document setting out: who is running the business what goods or services will be produced how they are going to be produced how it is going to be marketed where the business fi nance will come from what sales are expected how much profi t is expected
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2. Why is a business plan important? As Ben Murphy discovered for Chocolate Delight, a business plan is important
for the following reasons:
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It forces entrepreneurs to be realistic and to consider all the practical aspects of running a business, not just the exciting parts. It sets targets for a business. This makes it easier for entrepreneurs to measure their success. It is needed to raise fi nance from banks, investors or grant-aiding bodies. A well-prepared business plan helps to convince them that the enterprise has been well researched and has a strong likelihood of success. A badly thought out plan will not encourage others to invest in a business. It reduces risk by helping entrepreneurs and business people to think through their ideas.
3. How is a business plan prepared? Business plans can differ depending on the type of business. However, all
business plans should provide similar basic information. The following is the business plan that Ben Murphy prepared for his business. All business plans should be brief and focused.
CHOCOLATE DELIGHT BUSINESS PLAN
Prepared 1 February 20—
Section 1: Business Description Name Chocolate Delight Address Unit 3, Skerries Enterprise Centre, County Dublin. Owner Ben Murphy. The business will be set up as a limited company.
Product Chocolate Delight will produce luxury handmade chocolates.
Purpose The business exists to make ethical chocolates at a profi t. 252
Section 1: Business description section contains very basic information about what the business is about, who is setting it up and where.
