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Developing a business plan for a new business (8 Reasons for an…
Developing a business plan for a new
business
Objectives of a bus plan
To present a written plan of how the entrepreneur plans to exploit the opportunity
To attract investors
1.To identify and describe the nature of the business opportunity or new venture
Other benefits include
Systematic, realistic evaluation of the
new businesses’
chances of success in the market
A game plan for managing the business successfully
A management instrument for comparing actual results against targeted performance
A primary tool for attracting money
A business plan is a written document that accomplishes the 3 main objectives.
Importance & necessity
Planning pre-determines what the business proposes to accomplish and how this is to be accomplished.
Important to employees, potential investors, bankers, suppliers, customers and so on.
8 Reasons for an entrepreneur to write a bus plan
To sell the business to himself/herself
To arrange strategic alliances
To obtain investment funds
To obtain large contracts
To obtain bank financing
To attract key employees
To complete mergers and acquisitions
To motivate and focus the management team
Stakeholders in a business plan
Internal
Management
Employeesa
External
Customers
Investors
Banks-capital, collateral, character, conditions