Frequently Asked Questions (FAQs)

Get answers to common questions and more specific situations about all kinds of businesses.

What is a business plan and why do I need one?

A business plan precisely defines the business, identifies goals and serves as the firm’s résumé.

The basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps allocate resources properly, handles unforeseen complications and helps businesspeople make the right decisions. Because the business plan provides specific and organized information about the company and how it will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, the plan can tell sales personnel, suppliers and others about the company’s operations and goals.

Define the Business Plan

It may seem silly to ask, “What business am I really in?” But some owners/managers have gone broke because they never answered the question. The following sample business plan outline may be of assistance in creating the company’s business plan.

A Business Plan is:
• The management and financial “blueprint”for a business start-up and profitable operation.
• Written by the business owner with outside help, as needed.
• The explanation of how the business will function and depicts its operational characteristics.
• A detailed view of how the business will be capitalized and managed.

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