LO 4.1 Explain the purpose and importance of the business plan.
Business plans are important to raise capital, provide a road map for future operations, and prevent omissions.
LO 4.2 Explain the purpose and process of developing a business model.
Business models answer questions like “Who is the customer?” “What does the customer value?” and “How do we make money?” Business models and feasibility analyses are valuable exercises to show that the business can make money before the business plan shows how.
LO 4.3 Describe the components of a business plan.
The major sections of a business plan include the cover page, table of contents, executive summary, company information, environmental and industry analysis, products or services, marketing research and evaluation, manufacturing and operations plan, management team, timeline, critical risks and assumptions, benefits to the community, exit strategy, financial plan, and appendix.
LO 4.4 Discuss the importance of reviewing your business plan.
Like any project involving a number of complex steps and calculations, your business plan should be carefully reviewed and revised before you present it to potential investors. After you have written your plan, evaluate it as you think lenders and investors will.
LO 4.5 Create a pitch.
Your pitch is the presentation you make to investors, customers, or others in order to communicate the value of your business plan. One of the key components is your pitch deck.