Final answer:
The business plan should include a section that describes the business's purpose, specifying what problem it aims to solve or what market gap it seeks to fill. This part of the plan, often the executive summary or company overview, should logically outline the business's objectives, its strategies to address existing problems or market needs, and provide a cost estimate for implementation.
Step-by-step explanation:
Understanding the Purpose in a Business Plan
The section of the business plan that describes the purpose of the business, its reason for existence, and justification for its viability is known as the executive summary or company overview. This section should clearly state what problem the business aims to solve or what gap in the market it seeks to fill.
A well-defined purpose helps to convey to potential investors or stakeholders the business's intended direction and its foundational principles.
In addition to stating the business's purpose, this section should also outline how it plans to address existing problems or market needs. It's important to include a cost estimate for implementation and, where relevant, report how it changes existing law or market conditions.
Structuring the proposal logically from introduction to conclusion will help ensure that readers have a clear understanding of the business's objectives and methods.
When determining the purpose behind your plan, it is beneficial to ask questions about the reason for writing and the expected outcomes. This helps to refine not only the business's purpose but also to shape the reasoning strategies that will be employed throughout the plan.
The ultimate goal of this section is not only to explain what the business is and why it exists, but also to convince the reader that pursuing this business is a worthwhile and thought-through venture.