Chapter 1 Entrepreneurship and the entrepreneurship

It communicates to people

The business plan is a way of articulating or revealing to the proponents and the public the nature of the venture. It contains vital detail concerning the business like its product of market approach and extent of viability.

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  It permits constant change
  

The business plan must also evolve into one that is relevant to changing condition. It serves as guide for the entrepreneur to constantly re-check his ideas and concepts.

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  It is a call to action
  

A written document, once properly presented, can convince more people as compared to a verbal communication.

What should the Business Plan contain?

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  There is no definite way of writing the business plan. Every business plan is unique in itself because it reflects the intent and the situation of the business. In writing the plan, one must always put in mind that the document is important. It should contain key elements needed to produce results notably to influence investors to join the business and customers to patronize it.
  
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  Through a plan, you significantly increase your chances of success if you focus on five area which entrepreneurs sometimes overlook.
  

1. Realism: It is to be excessively optimistic about a new idea.
2. Outside Advice: Planning enables you to recognize problems that call for outside sources of information and assistance.
3. Recognizing change: the nature of market and consumer needs changes rapidly.

D. Guidelines for the preparation of the business plan

The following guidelines are applicable to a wide range of business which an entrepreneur may pursue.
1. The Introduction
2. The Industry
3. The Business
4. The Product or services
5. The Market
6. Marketing strategy
7. Management
8. Labor
9. Financial Forecasts
10. Supporting Exhibits

Roger Thompson, in the article Get full value from your plan, listed common mistakes in developing the business plan as well as the remedies for each.

1. Single-purpose use- Entrepreneurs typically prepare a plan to raise money and seldom give thought of actually using it.