During many stages of the development of business

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For this assignment you will read each paragraph from part 1 and 2 and respond to the students forum with 200 words a piece with your thoughts about the statement presented.

1. Although a business plan is not required it can be of great use during many stages of the development of a business. A business plan serves as a continuous reference even after your business has started up and received funding from investors. It can also help make the business appealing to potential partners or employees who are interested in being a part of the business. According to Score (2014), a business plan can also help identify strengths within the business and identify and combat the weaknesses.

A business plan can serve as a 3-5 year layout of all aspects of the business and can assist in gaining financial support from investors. It can also assist in preparing the business owner to better understand the state of the market in which they are about to enter. Business plans allow the potential business owner to organize their ideas, research, and resource needs in a clear and concise manner.

Prior to writing the business plan it is beneficial to simply write out a description of the business idea so that it can be referenced in the future (Lesson 1). As the business takes off it is easy to lose sight of what the initial idea was or what inspired it. Initial market research should also be conducted prior to writing a business plan because that will identify if there is opportunity in the market you are looking to enter (SBA.gov).

Investors initially look at the executive summary, and maybe in some cases this is as far as they get. Score (2014) suggests that the executive summary be the last thing written when building the business plan. It should be written after all other elements of the business plan have been developed. Investors also look at the research conducted and determine how or if they can profit. Why invest if there is no profit to be made?

2. A business plan can help to foster alignment, set the tone for the business and even help a business owner craft their brand messaging. A business plan also allows a business owner to think more clearly about exactly what they are doing and where they are going. A good business plan will help the business owner to understand the industry the business owner is entering, and how they will fit. It is important for a business to be organized and stay on track, a business plan can help with that. A thorough business plan allows a business owner to put things on paper and really think things through.

A business plan also fosters alignment and makes sure that everyone is on the same page regarding the current and future plans for the company. I think the most important reason to write a business plan is to articulate the business owners’ vision and future plans for their company, and holds them accountable. A business plan is a realistic plan that allows a business owner to describe exactly what they do and understand their competitors.

The primary purpose of a business plan is to define what the business is or what it intends to be over time. The five things you should do first before writing your business plan: determine your purpose – the business owner must be able to articulate exactly what they plan to do with the company. Build your vision – having a clear vision of what a business owner want to accomplish is vital. Clarify your business model – the business plan should cover how the business plans to operate. Identify your target market – you need to know your targeted audience so you can market your product or service accurately. Test your business idea – business owners should talk to potential clients and ask for their feedback.

Investors look at to see how the money is planned to be used and if their investment is really needed. Potential investors also check for other potential investors to see if any other investors are interested in the product or service.

Reference no: EM132223193

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