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Every new venture should have a business plan. A business plan is the formal written expression of the entrepreneurial vision, describing the strategy and operations of the proposed venture. The business plan also goes by other names, depending on its intended audience. Presented to a banker, it may be called a "loan proposal." A venture capital group might call it the "venture plan" or "investment prospectus." The advantages of writing a business plan far outweigh the costs. The purpose of the plan is to enable the top executives of the firm to think about their business in a comprehensive way, to communicate their objectives to individuals who may have a stake in the firm's future, to have a basis for making decisions, and to facilitate the planning process.

Entrepreneurs should undertake the task of preparing the business plan personally. Although outsiders - consultants, accountants, and lawyers - should be tapped for their advice and expertise, the promoter or the initial top management team should be responsible for the writing. Personally drafting the plan will enable the entrepreneurs to think through all aspects of the proposed business and ensure that they are familiar with all the details, for they will have to make decisions about the new venture and be responsible for those decisions. Moreover, investors expect the founders to be involved in and knowledgeable about the proposed enterprise.

Business

The primary function of a business plan is to create a written outline that evaluates all aspects of the economic prospects of either a start-up or an operating business. We believe that preparing and maintaining a business plan is important for any business regardless of its size or nature. But it will not insure your success. If you maintain a correct assessment of the changing economics of your business, your plan will provide a useful roadmap as well as a financing tool. But if you have miscalculated the potential, then your business plan could become a roadmap leading to failure.

The My Own Business course contains sixteen sessions which cover the important areas of risk when operating a business. At the end of each session there is a business plan template which you can fill in and print off. Your overall business plan will be made up by compiling together these filled-in templates at the end of each session. (Session 2 contains templates for both Sessions 1 and 2.) Your resulting plan will focus specifically on your own business and goals. To begin, let's take a preview look at each of the 16 Business Plan Sections:

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