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Business Plan Question and Answer

The document discusses key aspects of business plans, including what they are, why companies need them, common features, and how often and what parts should be updated. A business plan provides an overview and strategic plan for a company's operations. It forces management to think constructively about the company's goals, strategies, and finances. A good plan includes descriptions of the business, products, industry, advantages/disadvantages, targets, policies, structure, investment needs, and financial forecasts. Plans should be tailored to their intended audience and purpose, such as raising capital or improving strategy. They are generally intended for investors, shareholders, and managers. Plans should be updated annually and when aspects like competitors, technology, markets, or finances change

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1K views2 pages

Business Plan Question and Answer

The document discusses key aspects of business plans, including what they are, why companies need them, common features, and how often and what parts should be updated. A business plan provides an overview and strategic plan for a company's operations. It forces management to think constructively about the company's goals, strategies, and finances. A good plan includes descriptions of the business, products, industry, advantages/disadvantages, targets, policies, structure, investment needs, and financial forecasts. Plans should be tailored to their intended audience and purpose, such as raising capital or improving strategy. They are generally intended for investors, shareholders, and managers. Plans should be updated annually and when aspects like competitors, technology, markets, or finances change

Uploaded by

wizdom20032001
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Business Plan: Questions & Answers

What is a Business Plan


 entrepreneurs, and the like with an overview of a new or existing business and a long and short
term strategic plan for its operation.
Why does my company need a Business Plan
Most of all, the writing a business plan is that it “forces” company owners and management to
sit down together and think constructively about the company, its aims, progress made so far,
alternative business strategies and implementation, and how to realize future business and
financial goals.
What does a Business Plan include
A business plan is essentially a written summary of the various aspects of a business’s operation
and their influence on financial results.
What are the key features of a good Business Plan
A good business plan should include among other things: a general description of the business
and its products and/or services; an industry and competitor overview; an analysis of the
advantages/disadvantages of the product/service. In addition, a well written business plan will
identify progress targets, consolidate operating and marketing policy, describe the organizational
structure of the business and its human resources, summarize the necessary investment needs,
and finally forecast how these elements combined will impact future Profit & Loss Statements
and cash flow.
Are all Business Plans the same
Generally speaking, a good business plan will tailor itself to the intended audience and the
specific client’s purposes.
The most common reasons for writing a business plan include:

1. Raising capital – directed at investors outside the company.


2. Improvements or changes in the business strategy – directed internally.
3. An operational business plan – generally directed internally.

Who is a Business Plan intended for


Business plans written to raise capital are usually directed at banks, technological incubators,
venture capitalists and/or private investors as well as other sources of capital such as State
guaranteed funds.
Business plans written with the intention of altering an existing business strategy or improving
financial results are usually written for existing investors, shareholders and managers who wish
to increase efficiency.
Should Business Plans be kept up-to-date? How do I know when to change mine
Nowadays, businesses evolve rapidly and unexpectedly due to advances in technology,
diversified products and changing marketing techniques. Thus, it is recommended that you keep
your business plan as current and relevant as you would any other aspect of your business.
Which aspects of a Business Plan should be up-dated?
A well written business plan will accommodate dynamic changes. The variable parameters are
those which connect to the market and include the entering of new competitors, advances in the
relevant technology, marketplace and shifting consumer preferences with regards the general
market and your specific product/service.
You should also consider updating your business plan if you are making changes to your
product’s features, adding to your product mix or improving an existing product or service. Also,
any changes to your promotion, marketing and advertising budgets, changes in predicted
revenues or expenditure, and even global macro – economic shifts such as significant
adjustments in exchange and interest rates are all good reasons to update your business plan.
When updating your business plan you must consider whether you have been able to realize the
goals that you previously set for yourself, and if not, why not? Has your business maintained its
focus and continued to operate within the same industry, or has your business strategy somewhat
shifted?
How often should I update my Business plan
Companies are advised to up-date their business plans once a year as part of their annual or
perennial budget deliberations.
Is it possible to write a business plan without any specialist assistance?
It is possible to update business plans internally, as long as the original business plan was written
in such a way as to accommodate changes. However, companies are advised to make use of
objective observers whenever possible, who can specialist financial advice and ensure that
expectations are kept reasonable.

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