Making a business plan
One of the most difficult tasks for an entrepreneur is to prepare your business plan. However, this is one of the most important steps for structuring a business. A business plan has three primary functions.
* The first is to develop different strategies of a company, whether it is operating or planned to be open.
* The second is to measure the actual state of the company.
* The third and perhaps the best known entrepreneurs, is attracting investors and capitalists.
Who reads the business plans and do they want?
This document is read by providers of money, ie commercial and investment banks, financial corporations, investors and venture capitalists. Since both bankers and investors have different interests, they make their evaluations differently.
Banks are interested in determining the ability of the company to pay its debts, they make their decisions based on four arguments: moral character, credit history, collateral and cash flow. Investors seeking higher returns thus take more risks, they study primarily the Company’s ability to repay the investment.
What kind of investors should review the business plan
Investors should be chosen taking into account the interests of these match the type of business to be proposed. As this document outlines all business strategies, this is a sensitive instrument and should be treated as such, should be distributed only to persons who need to see it. Initially, we must send no more than ten investors.