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| Audience for Business Plan |  Good practical business plan is a good startup for your company. It has many advantages even while internal usage. The plan can help in many ways. An owner has to get back to the background from time to time and look through initial business plan. Revise it in order to avoid potential jeopardies and failures. Also business plan helps to organize the financial aspect of business. It promotes clear vision of company’s main goals and its successful achieving. Businessperson will have an opportunity to assess firm’s progress by comparing declared goals and actual achievements.
Business plan has very important meaning for external use. If plan is rational and seems profitable, potential investors may invest money in the venture or banks may borrow money for company’s development. For many business partners business plan information may be useful at some degree of cooperation. Among such partners are banks, grant sponsors, potential buyers of the business, potential partners, and investors.
For example, such information as how are you going to use the loan or what will be the source of overdraft repayment will be interesting for the bank. Potential investors have to be well-informed about how are you going to use their money, how and from what sources you are going to give back money, what will be the profit from this venture, if a company has other financial sources. Shareholders will be interested in dividends from their shares, if they have an opportunity to sell their shares etc. A calculation of future return in three or five years will be not out of place.
Business plan has to be intended for internal use also. Such plan should contain competitive advantages of the company and define all main strategies. Thorough descriptions of potential customers, competitors, suppliers and their contact information are to be presented in completed business plan. Position descriptions and strategic goals are also important elements of good business plan.
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