Entrepreneur's Handbook

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Entrepreneur's Handbook

WHOM ARE BUSINESS PLANS ARE PREPARED FOR?

 

As summarized in the introduction, business plans basically have two functions. The first of these is to contribute to the entrepreneurs to elaborate their business ideas based on research and data and to evaluate them from a holistic perspective. Entrepreneurs analyze which customer groups they will approach with what kind of value proposition, market and sector conditions, competition, procurement, production and distribution processes, investment processes, financial needs and profitability targets and make their decisions and activities related to the enterprise process much more realistic and efficient by preparing a business plan. In this sense, business plans mean that the business idea has evolved from being a simple idea to a set of well-grounded activities. The first report in which the feasibility of the business idea and its functional processes are based on data-based analysis will be the business plan. Many entrepreneurs have been successful by making fewer mistakes and putting forward the right moves, as they can better analyze the difficulties, strengths and weaknesses they will encounter in the entrepreneurship process by developing quality business plans and the issues they need to focus primarily on.

The second important function of business plans is external stakeholders. A good business plan is the most important tool for explaining and promoting the business idea. Most entrepreneurs need various kinds of support from external stakeholders to bring their business idea to life. In the early stages of the venture, a well-prepared business plan will be needed that convincingly demonstrates why and how the business idea will be successful, and that it can generate financially acceptable returns in reasonable time to find partners, to persuade investors, to get loans from banks and support from public funds. Similarly, business plans can help to gain industry acceptance. Even if many entrepreneurs start their venture with a very good business idea and value proposition, they have difficulty finding a place in distribution channels or being accepted by critical suppliers. A good business plan can play an important role in demonstrating the seriousness and potential of the initiative, and being supported by industry actors. At this point, it should be noted that it is very important that business plans prepared by targeting external stakeholders are prepared meticulously and in a quality that reflects the seriousness of the entrepreneur, and that they are capable of expressing the business idea in the most effective way. Business plans are not documents that describe all the details of the enterprise process very longly. The aim should be to produce an understandable summary that covers the basic elements of the business idea in a succinct way and can be read quickly and effortlessly.