A business plan is the written document that details the proposed venture. It must describe current status, expected needs, and projected results of the new business.
- Fry & Stoner (1985)
A business plan provides a clear picture of what that venture is, where it is projected to go, and how the entrepreneur proposes it will get there. The business plan is the entrepreneur’s roadmap for a successful enterprise.
- Kuratko & Cirtin (1990)
A typical business plan consists of the following sections:
· Executive Summary
· Business Description
· Critical Risks
· Harvest Strategy
· Milestone Schedule
· Appendix or Bibliography
Benefits of a business plan:
· It forces the entrepreneur to view the venture critically and objectively.
· It subjects the entrepreneur to close scrutiny of his/her assumptions about the venture’s viability and success.
· It helps him/her develop and examine operating strategies and expected results.
· It quantifies objectives, providing measurable benchmarks for comparing forecasts with actual results.
· It serves as a loan proposal to bankers, a venture plan to venture capitalists, or a venture prospectus to potential investors.
· It serves as a roadmap for guiding the venture to success.
Readers who are interested in learning more about business plan are advised to refer to the book listed below, or do an online search.
Kuratko & Hodgetts, Entrepreneurship – Theory, Process, Practice, 7th edition
Lecture notes of Aric Low