Explain the purpose of a business plan.

Explanation should address

  • the purpose, vision, and means of operation
  • that the business plan serves as the company's résumé, explaining the objectives, personal backgrounds, and experience of the owners to investors, partners, employees, and vendors.

Process/Skill Questions:

  • For whom is a business plan written?
  • Why is it necessary to develop a business plan?
  • How is a business plan a working document?
  • How does a business plan help the business owner communicate their vision and goals?
  • What are possible consequences of not having a business plan?
  • How can the probability of business success be projected?
  • How often should a business plan be edited or changed?