What Is Meant By Business Plan

What Is Meant By Business Plan-68
Investors looking for graphs, charts and financial projections to make a final decision won't be satisfied with a mini-plan.

Investors looking for graphs, charts and financial projections to make a final decision won't be satisfied with a mini-plan.

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Banks want to mitigate their risk of default and private investors, such as Angel’s, want a realistic forecast for when they will be reaping a return on their capital.Although a business plan was created at the start of the business venture, it is necessary to review it from time to time and make changes as the company evolves.A yearly review or a review when the company undergoes growth or significant changes is needed.business plan is merely a "plan for the business," where the business may be a profit-making company, a government organization, or a non-profit organization.A business plan can also represent a product line, an individual product, a line of service products, or some other part of a larger business entity.Business plans usually look forward in time for a period of one to three years to a "planning horizon," which moves forward periodically with reviews and updates.Business plans for different organizations will differ somewhat in content and structure, but most are designed to address two fundamental kinds of questions: Founders and owners typically develop an initial business plan before startup.For companies in private industry, the heart of the business plan is a business model and business strategywhich describe how and where the company expects to make and spend money.All other parts of the business plan stem from the model.They build the plan anticipating using it as a tool for supporting their requests for investment capital or loans to start the business.And, once the company is operating, the business plan becomes a living document, which management reviews and revises at least quarterly.

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