BU121 Study Guide - Midterm Guide: Operating Leverage, Contribution Margin, Free Cash Flow
Document Summary
Chapter 2: writing an effective business plan (3 marks) Benefits of writing a business plan: significantly reduces the chance of venture failure and increases the rate of new. It is a detailed road map for converting your ideas and vision into a real, functional business: this is the kind of information that venture capitalists and other investors use, always changing. Components of a business plan: key questions answered. How will the idea be realized (implementation strategies) What is your financing plan? (how much + what type of financing + how will it be used +return): characteristics of a well-prepared plan. There is a general agreement that they must include. The plan should be arranged and prepared in proper business form. Ultimately it is the quality of the idea behind the new venture and the quality of the person or persons who have put it together that are crucial: critical risks.
