A good and up to date business plan fosters the development of the company.
While financial reports describe the past, the business plan engages with the future and shows wat to expect from the company.
A convincing business plan demonstrates competence.
A structured and current business planning helps examination of the business model and strategy over time.
The financial planning integrated in a business plan makes also a demonstrative controlling tool.
When the existing business is expecting a major change, or planning a new venture, investors look for transparent facts to justify their most probable investment pay-back chances.
Benefits of business planning
Business plan, business case, strategy summary, investors presentation, information memorandum or instruments like a balanced scorecard support decision making. Investors get confidence about expected cash flows from transparent and plausible assumptions about the future development of the company and its finances. Perceived risk influences also risk adjusted financial costs and terms.
Obtaining and maintaining adequate financing is easier if necessary information is available in a structured form and a quick production of convincing Credit Application, Placement Documents, Information Memoranda, Capital Budgeting, etc. is possible.
The business planning itself helps strategic considerations with such as scenario planning and is an optimal preparation for negotiations with investors, banks and other stakeholders. Papers can be derived swiftly also to recruit talents, get suppliers and clients or convince targets of joint ventures or merger.