Planning plays an important role in determining the degree of success realized by a new or small business. Essential elements to business success are identification of goals, followed by development of strategies to meet those goals. A business plan is an effective tool used by businesses to organize these goals and objectives into a coherent format. It can be defined as operating a company on paper. No matter the size or stage of development, companies use business plans to improve internal operations and to describe and market the business to potential outside financiers. A business plan should not only reflect the individuality of the new business but should also follow a standard format. This format is comprised of four major sections: introductory elements, business section, financial statements, and the appendix. This paper seeks to address that utilizing business planning as a tool will allow new or small businesses to achieve and even surpass their goals.
Hormozi, A.M., Sutton, G.S., McMinn, R.D. and Lucio, W. (2002), "Business plans for new or small businesses: paving the path to success", Management Decision, Vol. 40 No. 8, pp. 755-763. https://doi.org/10.1108/00251740210437725
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