What are the three main factors addressed in a business plan?

What are the 3 major components of a business plan?

Main Components of a Business Plan

  • Executive summary. This is your five-minute elevator pitch. …
  • Business description and structure. This is where you explain why you’re in business and what you’re selling. …
  • Market research and strategies. …
  • Management and personnel. …
  • Financial documents.

What are the factors of a business plan?

8 Factors that Make a Good Business Plan

  • It fits the business need. …
  • It’s realistic. …
  • It’s specific. …
  • It clearly defines responsibilities for implementation. …
  • It clearly identifies assumptions. …
  • It’s communicated to the people who have to run it. …
  • It gets people committed. …
  • It’s kept alive by follow up and planning process.

What 2 factors determine which type of business plan should be prepared?

The two primary audiences for a firm’s business plan are a firm’s employees and investors. Employees look for the vision and future plans of a firm. Investors are looking for viability and potential financial returns. It is often argued that the process of writing a business plan is as important as the plan itself?

What is the main purpose of a business plan?

✓ The purpose of a Business Plan is to identify, describe and analyze a business opportunity and/or a business already under way, examining its technical, economic and financial feasibility.

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What are the 4 key reasons why businesses create plans?

Four Reasons to Write a Business Plan

  • To raise money for your business. Potential investors or lenders want a written business plan before they give you money. …
  • To make sound decisions. …
  • To help you identify any potential weaknesses. …
  • To communicate your ideas with stakeholders.

What is the key most important part of your business plan?

The executive summary the most important part of your business plan, and perhaps the only one that will get read so make it perfect!

What are the five main sections of a business plan?

As you write your plan, be sure that you add detailed descriptions to each of these five sections:

  • Business Idea: What are you building? …
  • Product & Sales: How will you make money? …
  • Marketing: Who is the customer and how will you reach them? …
  • Management: Who believes in you?