Management MGT 3303 Chapter Notes - Chapter 3: Market Segmentation, Financial Statement, Operations Plan
A business plan is a written narrative, typically 25 to 35 pages long, that describes what a new business intends to accomplish and how it intends to accomplish it. reasons for writing a business plan. Internal reasons - forces the founding team to systematically think through every aspect of its new venture. External reasons - communicates the merits of a new venture to outsiders, such as investors and bankers. A poorly cited plan - a plan should be built on hard evidence and sound research, not guesswork or what an entrepreneur thinks will happen. The sources for all primary and secondary research should be cited. The market opportunity needs to be better defined. Obviously, the new venture will target a segment or a specific market within the industry. Overly aggressive financials - many investors skip directly to this portion of the plan. Projections that are poorly reasoned or unrealistically optimistic lose credibility.