SOCSCI 2EN3 Lecture Notes - Lecture 4: Sales, Financial Statement, The Need
2 Oct 2018
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Document Summary
Sets out the basic idea underlying a business and related start up. Identifies the nature and context of the opportunity. Presents the entrepreneur"s approach to exploiting the opportunity. Serves as the entrepreneur"s tool for raising capital. Clearly articulated statement of goals and strategies for internal use. Imposes discipline to the entrepreneur and management team. Selling document to be shared with outsiders. Provides a credible overview for prospective customers, suppliers and investors. Helps secure favourable credit terms from suppliers. Opens approaches to lenders and other sources of financing. Common business plan flaws: overly optimistic financial projections, inadequate competitive analysis and/or weak environ- mental assessments, vague marketing strategies, lack of research, unprofessional presentation, hazy timelines, vague risk assessment. Incorrect anticipation of capital and time it will take to achieve objectives. Based on financial projections at odds with proper market research. Long plans that tell more about the entrepreneur and less about the financial return for the in- vestor.
