Who needs a business plan?
Business plans are required by many companies for a number of reasons and can be tailored for different audiences.
When a business is looking to attract debt funding, a pre-requisite of the credit decision making process is often scrutiny of a business plan which will contain both numerical and written information about the business applying for funds.
The numerical sections may refer to past trading performance or projected future trading and more often than not will include a summary of both. Written sections may include everything from the history of the company to the market in which it trades and an example report is given in this guide.
When marketing a company for sale, a document known as an information memorandum will be prepared for prospective acquirers which is essentially a business plan written through rose tinted glasses to accentuate the company’s selling points for the reader.