UNIVERSITI UTARA MALAYSIA
SEMESTER ONE SESSION 2011/ 2012
CHAPTER ONE: WHY PLAN?
Dr. Azizi Bin Hj Halipah
ANG SHYAN HONG197396
28 SEPTEMBER 2011
1.What is a business plan? What are the advantages to preparing a business plan for a new venture? Business plan is a written document that carefully explains every aspect of a new business venture. For internal, the business plan is refer of top management to developing. For external, the business plan is intro to who are interests of the business like investors or stakeholders to the business. 2.What are the two most common reasons that entrepreneurs write business plans? There are two main reasons to write a business plan which include internal and external aspect. For Internal reason, it forces the owner of the firm to think through every aspect for developing the business. While for external reason, it helps other to know more about the company, such as investors and bankers.
3.Who are the primary consumers of business plans? In what ways do the people who read business plans differ in the information they are looking for? There are two primary consumers of business plans which include firm’s employees and external stakeholders. For firm’s employee, they are looking for the vision and future of the firm. While for investors and other stakeholders, such as investors, potential business partners, potential customers, grant awarding agencies that are being recruited to join a firm, normally need a plan to be realistic and not reflect overconfidence on the firm’s part.
4. It is often argued that the process of writing a business plan is as important as the plan itself. How is this so? Business plan is important as it is typically the first aspect of a proposed venture that will be seen by an investor or whomever the plan is presented to....