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Show how investors can cash out in three to seven years, with appropriate capital appreciation. Advantages of business planning: Potential benefits realized from the development of a business plan include: Improved understanding of opportunities, problems and weaknesses ; Greater control over the organization.

When I have received business plans, the very best responses come from people who have looked at the risks and have an answer for every question. What you never want is to throw a scenario at your plan and have to answer "I don't know what I would do in that situation". You want to plan for every possible contingency, and certainly all the major risks to the ongoing success of your business.

Before the preparing the plan, the entrepreneur should: Review previous business plans (if any) and their outcome. This review will help highlight which areas of the business have proved difficult to forecast historically. Be very clear as to objectives on which their plans will be based. Set out the key business assumptions on which their plans will be based.

Most of all if you are seeking funding for your business, it will be absolutely crucial to go along and show someone an actual plan, because there will be very few people who will loan you money on the basis of what's just in your head. So it's pivotal to have a plan and be committed to preparing that document.

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