A business plan:
A report detailing the marketing strategy, production costings and financial implications of a business start-up.
Contents of a business plan:
Relevance of a business plan in obtaining finance:
A thorough and well written business plan is likely to:
Force business owners to work out if the business is viable.
Provide a plan for future actions.
Identify any potential problems.
Help convince potential lenders that the business idea and owners are credible.
A well written plan reduces risk to a bank or potential investors.
A convincing business plan allows the entrepreneur access to a wider range of finance.
The interest rate on loans may be lower.
The entrepreneur may be able to give up a smaller percentage of shares to a business angel or a venture capital firm.
A well written plan reduces risk to a bank or potential investors.
A convincing business plan allows the entrepreneur access to a wider range of finance.
The interest rate on loans may be lower.
The entrepreneur may be able to give up a smaller percentage of shares to a business angel or a venture capital firm.
When the business idea and owners are not credible:
From the examiners:
More details on writing a business plan here.
Sources of information and guidance.
