The business plan is an important component of a business start-up. It forces the business owner and his/her management team to reflect seriously on the goals of their venture and the steps necessary to launch and maintain it successfully.

When venture capitalists are asked what they consider most carefully when
deciding whether or not to fund a new venture, they consistently respond: “We
are most concerned with the quality of the management team and the quality of
the business plan.”
The business plan is an important component of a business start-up. It forces
the business owner and his/her management team to reflect seriously on the
goals of their venture and the steps necessary to launch and maintain it
successfully. The very act of constructing a business plan offers an important
learning experience to the business owner, because it requires him/her to take a
comprehensive view of all aspects of the new venture: organizational, financial,
marketing/sales, legal, operational, and IT.
Outside investors find the business plan to be important because it offers
them a revealing picture of how the new venture will be organized and what it will
achieve. Of equal importance, the business plan enables them to determine how
effective the owner and his/her management team will be in launching and
maintaining the venture. If the business plan is poorly written, inconsistent, and
unrealistic, then the investors will not fund the venture, because they know that it
will likely fail. If you cannot write a compelling business plan, then it is unlikely
that you will be able to establish a viable business. On the other hand, a wellcrafted,
compelling, and realistic business clan suggests that the owner and
his/her management team know what they are doing.
This assignment has you put together a short business plan. In constructing
it, follow the outline provided later in this guide. As you organize and write it,
keep reminding yourself that the point of the document is to force you to think
through the most significant issues needed to launch and maintain the business
successfully, and to convince investors to provide you with funds because you
have a good money-making idea and know what you are doing.
Selecting a business venture
Write a business plan for one of the two following ventures:
· Option A. Expanding a one-store operation to a two-store operation
Assume you currently run a small retailing business in the lobby of a
large office building. Your store occupies 1000 square feet of space. You
spend fifty hours a week at the store and hire two employees, each of
whom spends thirty hours a week at the store. Your annual revenues are
between $150,000 – $300,000 a year. The products you sell are a mixed
bag of items. Basically, you stock up with items that occupants of the
office building will want, including snacks, pre-wrapped sandwiches,
UMT

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