Amid market and tough competition, an enterprise must be able to quickly and adequately react to changes taking place both in the external environment and inside the enterprise itself. This becomes possible when several conditions are met:
- The management and the investor have an objective view of the actual financial standing of the enterprise and its place in the market;
- There are specific objectives which the enterprise should pursue to achieve;
- The management actively involves planning while setting objectives for the enterprise, each step of the plan is strictly monitored and implemented in order to achieve them;
- The management of the enterprise and the investor realize the essence of processes taking place in the market, external environment and inside the enterprise itself.

A business plan is made for internal and external purposes. Overwhelmingly and typically for our country, a business plan is started to be written when there is a need in investments. But the point is that it is only on the one hand; indeed, a business plan is made not only for external purposes.

External purposes for which an enterprise business plan is made, are as follows: to ground the necessity of attraction of additional investments or borrowings; to demonstrate the firm’s capabilities and draw the investors’ and bank’s attention; to persuade them in the sufficient effectiveness of the investment project and the high level of the enterprise management.

Each investor would want to evaluate the profitability of investing in the suggested investment project and assess the ratio of probable revenue from the project and riskiness of the investment, and the best way to do it is to study and analyze the business plan of the investment project.

Internal objectives are business planning, enterprise management training and knowledge assessment, their understanding of the market environment and the actual market position of the enterprise. It is of major importance that the investor and the enterprise management achieve understanding of the strategic objectives, characteristics, competitive environment, strengths and weaknesses of a particular investment project, its probable efficiency under the given conditions. Realizing of how to make a business plan in the right way becomes a compulsory requirement in training of every manager, executive, and businessman.

As a summary: with a business plan, you will make your enterprise more effective, well-managed and profitable and will be able to predict the future situation with more precision.