A well-defined business plan is what makes a concept into a business. A business plan is like a map that helps the management take critical decision and reach the desired destination. It not only helps you define your business and its future but it also portrays your vision and mission in front of the investors.
Your business plan is the blueprint that helps you actualize your business model and checks you from deviating from it. Your business plan is your first impression on private equity or angel investors and helps them in understanding your business model. One important part of any business plan is its financial feasibility.
It is an internal analysis that helps the promoters comprehend vital financial factors like sales, purchases, profits and cash flow. It also predicts the required amount of time to reach the breakeven point and estimates the current standing of the company. The financial feasibility report also furnishes the taxes and liabilities of a company. It gives you the idea about the viability of your business model.