ug companies, or medical supply companies. These could have been revealed in the business plan as opportunities.
A business plan would also have established that the demand itself for magazines in the medical profession justified participation by Rodrigues (or did not) and would have helped him determine whwhich would be successful.
Going into the toy business without a business plan led to even more trouble than the publishing business. Rodrigues indicated that he did not need to take out any loans (and therefore did not think that he needed a business plan), but his decision not to pursue additional financing was apparently based only on the purchase price.
A business plan would have allowed Rodrigues to plan his cash flow and expenditures for an entire year and would have demonstrated that the cyclical nature of the business might well result in additional cash at certain times of the year. After the first year and the Christmas buying spree, the company might well be able to produce the profits that the accountant indicated would be forthcoming, but lacking adequate financial planning, it is now difficult for Rodrigues to realize long-term benefit from the company.
A business plan is also entirely appropriate for this company since it is a marked departure from the publishing industry in which Rodrigues formerly participated. There are vast differences in the marketing and even operation of these two companies, and a business plan might have indicated to Rodrigues where he might have shortcomings.
In addition, Rodrigues is in conflict with his current sales manager who sends him reports on how sales are performing compared to last year. A business plan would make these numbers useful as they would enable Rodrigues to compare seasonal performance and help both he and his sales manager focus on areas which may signal change. Instead, Rodrigues is setting the sales goals which, given that he has little experience i...