Professional Documents
Culture Documents
#Define a business plan. What are the reasons for writing a business plan?
-A business plan is a written narrative, typically 25 to 35 pages long, that describes what a new business
plans to accomplish and how it plans to accomplish it.
The reasons are-
Internal reasons-Forces the founding team to systematically think through every aspect of their new
venture
External reasons-Communicates the merits of a new venture to outsiders, such as investors and bankers
#Short note-
Executive summary-Short overview of the entire business plan; it provides busy readers with everything
that needs to be known about the new venture’s distinctive nature. It should be created after the plan is
finished.
Industry analysis-This section should begin by discussing the major trends in the industry in which the
firm intends to compete, along with important characteristics of the industry, such as its size,
attractiveness, and profit potential.
Market analysis-The marketing plan should immediately follow the industry analysis and should provide
details about the new firm’s products and services
Marketing plan- After reading this section of the plan, an investor should be confident that the firm’s
overall approach to its target market and its product strategy, pricing strategy, channels of distribution,
and promotional strategy are in sync with one another and make sense.