Business Studies Collins Revision Guide. - StudyGuide.PK

BUSINESS PLANS (2)How owners can use a business plan●●●●The owners will use the business plan as a checklist when settingup their business. They will probably obtain a pro-forma from abank or advisor and can use this to make sure that they do notleave anything out when planning their business.Once the business is up and running the owners can refer to theirtargets and strive to meet them. They can compare theirperformance with what was predicted and look for the reasons whythey met or otherwise the targets.The existing owners could also show the business plan toprospective investors. The quality of the business plan couldpersuade them to invest in the business and join it by becomingshareholders or partners.The plan could be shown to the bank or other lenders to persuadethem to grant a loan.How a bank manager can use a business plan●●●●The bank manager needs to make sure that the business idea willwork and that any money he lends will be safe. He therefore needsto make sure that the business will not fail.He will assess if the product or service has been thought throughand is very likely to be demanded by the public.He will also need to check that the product and the marketing planscompare well with the competition.By looking at the staffing and details of the owners, he will try andassess if the business has enough people with the right skills.34