Among the factors that occasionally contribute to the failure of most small scale business enterprises, business plan is rated higher (NDE 1978).
This is because most of the business owners workout the activities of their enterprises off- head instead of preparing a business plan. Like a building plan for a house, which explans how the house should look like when completed. Stoner and Freeman (1992), defined business plan as a formal document containing a mission statement, description of the firms goods and services, a market analysis, financial projections, a description of management strategies for attaining goals. Further, Kathryn and David (1998) argued that a well prepared business plan can take 200 to the complexity of the business contemplated, the strength of the competition, the number of factors more considered. However, experience and successful entrepreneurs make use of business plan in the working of their business and also to raise the necessary capital required to start the business on a very goo foundation.
Nevertheless, a well prepared business plan should be able to describe on paper where the business is going. What the business has to do to get to where it is going and how the business will look like when it get there