Business Plans and Their Importance in Improving Business Operations

Business Plan
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Business Plan
Introduction
Business is one of the pivotal considerations that most of the businesses need to consider across the globe. The reason behind the argument is that a good business plan helps in ensuring that the business operations of a firm operate well as expected. Business plans aimed at helping the organization accrue reliable revenue from operations of the business. From a different angle, business plans are important as they help businesses avoid losses and avert most of the risky operations that might affect the functionality of businesses. Financing a business is a foundation of all business operations. The reason behind the argument is that businesses need to plan on approaches and strategies on how to get the sources of capital that help run a business. Studies on business operations show that business plans help businesses significantly in growing as business plans play the crucial role of linking the business to other vital factors of production such as capital and means to run the business. The paper discusses businesses plans and the importance of business plans on helping in improving business operations in most of the business across the globe.
SECTION 10
Self-Financing
Self-financing is an important aspect of a business plan. The reason behind the argument is that self-financing is important as it helps businesses to have internal means to supply capital that supports business operations across the globe (Buera & Shin, 2011). Means such as saving a certain percentage of profit for precautionary means to help the business in case of risks is an example of means that most of the businesses need to incorporate into their business plan. Other businesses make significant use of their business plans to ensure that businesses run and operate quite effectually. Some of the businesses have approaches and policies, such as uses resources from the stakeholders and owners' pockets to run the operations of the business. An increase in the capital is an important way that businesses across the globe need to use to ensure that the business operations of the firm operate effectively. Based on the above reasons, self-financing is an important business consideration that most of the global businesses need to incorporate into their business plans.
Bank Financing
Bank financing is an important strategy that most of the global businesses need to consider. The reason behind the above argument is that banks offer business loan at a reasonable interest rate to ensure that investment rate in most parts of the globe increase significantly a person`s invest and out up businesses to boost their income and the larger economic status of their country (Jagongo & Mutswenje, 2014). Most of the governments ensure that banks offer finances to most of the startup businesses across the globe. As the opportunities of the source for loans are available in most parts of the globe that carry out business operations, businesses need to make good business plans that will help the businesses source for bank financing as well as have effective measures in place that aim at returning the amount at the stipulated time. The reason as to why the business plan needs to have pre-set measures that help the business in paying back the loan is that the strategies help the business avoid bad debts in their operations (Bewayo, 2015). Bad debts often lead to an insolvency status, where the business can hardly sustain its operations. Good business plans are important as they help business source for bank loans as they also guide the respective businesses on paying for the loans.
Credit Card Financing and Investor Financing
Credit card financing and investor financing are important strategies that business across the globe including in their business plans. Starting with credit card financing, it is one of the prominent ways that business people use to source for capital and money to run business operations. Credit card owners have the latitude to borrow some amount of money to help them to run their business operations effectually. On the other hand, investor financing is one of the prominent ways that most of the businesses across the gl...