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Business Studies for Secondary Schools

The planning process will help you identify an appropriate business that you can start,
the amount of capital needed, the sources of capital, how the business is going to be
formalised, and the key operational processes. Without planning, it is difficult to start
and operate any business smoothly.

A business plan is a document that provides a detailed description and analysis of all
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important aspects of the business over a given time frame. It serves as a roadmap to guide
an entrepreneur in developing strategies and procedures necessary to convert an idea
into a sustainable business. It is an important document because it spells out the vision,
mission, objectives, and goals of the business. By uncovering all important aspects of
the business, the business plan enhances the chances of succeeding in the business as
it gives answers to questions about the business’s operations before the business starts.
Figure 4.2 shows an entrepreneur thinking about key issues of the business, such as
what type of business to do, what will be the name of the business, when to start the
business, to which market the products will be sold, and how much will be the price of
the products. All these issues are addressed by a well-prepared business plan.

Figure 4.2: An entrepreneur thinking about key business issues

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