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In a more broad sense, business planning helps businesses of all sizes to deal with the day-to-day needs of the organization by forcing the owner to weed through the operations of a typical work day. Business planning will assist you in understanding how to effectively market your business, how to understand and plan for financial stability both now and in the future, how to carry out your daily operations with a necessary level of routine, and so forth.

Ownership and Management : This section of your catering business plan should suggest whether you intend to structure your business as a sole proprietorship, a partnership or a limited liability company. If the business will have multiple owners then you should set out clearly what their respective interests will be and the role that they will play in the management of the business.

Background : Include some information on the catering industry at both the national and local levels. Take note of industry trends and try to forecast future developments.

How do you create an effective business plan in this situation? Well, simply stated, place yourself in the shoes of the person lending the money. What would you as the lender want to read in a plan? First and foremost, these individuals want to see that you have demonstrated the ability to repay the loan with the required level of return on investment (ROI) and within the required time frame.

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