Audience[ edit ] Business plans may be internally or externally focused.
A business plan can be used by an entrepreneur for a variety of objectives. It is primarily used to get funding but there can be a number of other uses too.
A venture capitalist or an angel investor will very rarely commit an investment to a start-up without perusing its business plan.
The venture capitalist will primarily use the business plan to gauge risks and forecast growth prospects.
The investor will never restrict analysis of the business to just the business plan but it will always remain an important reference point. A banker obviously concentrates on the ability of the business to repay the debt and on the availability of collateral or other securities.
Banks look for at least some specific issues to be addressed in the business plan. For example, a bank needs projected balance sheets and profit and loss accounts for the first five years.
An entrepreneurial firm may need to form alliances with other firms to reach new markets, develop new products, or create common facilities. Other firms may want to know more about the business before committing to any long-term arrangement.
Sometimes, a business plan can help convince a well-established retailer or distributor to commit to the start-up. A good business needs support from experienced top-level employees. A business plan will help them understand what they are getting into.
Of course, showing the business plan to the rank and file is not necessary. A business plan helps in planning. While writing the business plan, it is likely that the entrepreneur was able to detect many shortcomings in the original business idea and these shortcomings could be overcome by thinking through and plugging the gaps.
Later, this plan can serve as a guide or manual to help in business and strategy formulation. Very often, an entrepreneur seeks moral support from friends and family.
A business plan can be a good way of presenting your business to your father, mother, wife, and colleagues. By going through it, they will have a better appreciation of what you are setting out to do.6 Major Uses of a Business Plan by An Entrepreneur!
A business plan can be used by an entrepreneur for a variety of objectives. It is primarily used to get funding but there can be a number of other uses too. A venture capitalist or an angel investor will very rarely commit an investment to a start.
Elements of a Business Plan There are seven major sections of a business plan, and each one is a complex document. Read this selection from our business plan tutorial to fully understand these.
The business planning and financing management process consists of four major parts, or “Building Blocks,” each adding to the foundation of the previous one: A business plan enables you to demonstrate to stakeholders, including founders and Building Block 2 – The Business Plan and Executive Summary.
A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame that these goals need to be achieved. It also describes the nature of the business, includes background information on the organization, the organization's financial projections, and the strategies it.
How to Verify Systems Designed in Business Analysis. Competitive Strategy For Dummies Cheat Sheet (UK Edition) Load more. Business; Business Strategy; Major Components of a Strategic Plan; Major Components of a Strategic Plan.
Related Book. Strategic Planning Kit For Dummies, 2nd Edition this assessment helps plan and . Students not admitted into the School of Business at the time of entry to the University may apply for admission to a major through School of Business procedures.
Admission is competitive. Decisions will be based on several criteria including the applicant’s academic record, courses completed, and space availability.