Why Make A Business Plan?

In many cases, the business plans are very important but so time there is a plan to try to convince someone else that you know what you do with your business, such as banks, investors, partners, etc. Now it is true that a well-written business plan can be a great asset to your success and if done right. For more reference, you can read business articles via https://www.europeanbusinessreview.com/.

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The business plan helps you and keeps you on track and can be the vehicle to get you where you want to be especially with so many forces outside of days now that you are bombing. A plan can be extremely important to your success especially when looking at the statistics that show that 51% of small businesses sometimes fail in their first 5 years.

If you said the profit margin would be higher, then you are right. Why your highest profit? If you said because of fixed costs, you would be right. The material cost, the cost of labor, and variable expenses would have increased by 10%, but your fixed expenses would have continued the same.

You brought more revenue due to more sales and you spent 10% more on equipment, labor and variable costs to cover additional sales, but you did not spend more on your fixed expenses.

It would show that your sales, fixed costs, equipment costs, the cost of labor and variable costs would need to be. It should also show you how many customers you would need and show what your margins and profits would be each year.