“If you are not willing to risk the usual, you will have to settle for the ordinary.”
~ Jim Rohn
The only reason to present a business plan to funders is if the entrepreneur requires additional cash to launch the business.
As this is the case for all but the smallest companies, the plan should be oriented around the information that funders will need to evaluate the business as an investment opportunity or loan risk.
The startup costs of the business are delineated to show how the funding will be used. Projected financial statements are included to give funders an idea of the profitability and solvency of the business in the future. The plan should include an explanation of the opportunity in the market, the management team’s expertise, and the operations and marketing activities planned.
Importantly, a business plan is not a place to offer a laundry list of ideas and state that the management will simply decide on the best ideas down the road. Your strategic course must be outlined based on whatever information the managers have gathered so far, even if it is slightly premature. Funders are interested in seeing decisiveness and the ability of the managers to choose a direction and orient their marketing and operations around it. Presenting options shows a business in need of additional management, and funders who cannot help with this will be unlikely to provide cash to such a company.
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Today’s Question: The Hiram Bingham luxury train has what magnificent location as its destination?
Previous Question: The O scale (or O gauge) is a scale commonly used for what type of hobby that is associated with the company Lionel?
Previous Answer: Toy trains and model railroading.
O scale (or O gauge) is a scale commonly used for toy trains and model railroading. Originally introduced by a German toy manufacturer around 1900, by the 1930s three-rail alternating current O gauge was the most common model railroad scale in the United States and remained so until the early 1960s.
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