Question

Please, can you help me answer these questions

1. Why should an entrepreneur develop a business plan?

2. Why do entrepreneurs who are not seeking external financing need to prepare business plans?

3. Describe the major components of a business plan.

4. How can an entrepreneur seeking funds to launch a business convince potential lenders and investors that a market for the product or service really does exist?

5. What are the 5 Cs of credit?

6. How do lenders and investors use the 5 Cs of credit when evaluating a request for financing? 7. How would you prepare to make a formal presentation of your business plan to a venture capital forum?

8. Why is strategic planning important to a small company?

9. What is a competitive advantage?

10. Why is a competitive advantage important for a small business to establish one?

11. What are the steps in the strategic management process?

12. A common criticism of mission statements is that entrepreneurs spend too much time crafting them and not enough time implementing them in the business. What is meant by this criticism?

13. Discuss the importance of what you do with a mission statement.

14. What are strengths, weaknesses, opportunities, and threats?

Answer 1

1. An entrepreneur should develop a business plan as it helps in developing clarity about the goals, the future projections of the sales and revenue, profit and loss. It helps in decision making and create proper records of company licensing and agreements, market expansion plans, review and analysis of strategies and monitoring the business performance. It provides an outline to discuss with important stakeholders like management, investors, customers and employees and seek any support and consultancy. It can be used as a tool for evaluation of the business idea and validation with help of facts and figures.

2. Entrepreneurs who are not seeking external financing need to prepare business plans to have a structure and reasoning for their business initiatives. It helps in creating a summary of the company resources, the sources for funds and income, strategies related to product or market development and monitoring the business performance. It helps in review and analysis and providing information for further planning and future strategies. It helps in identifying any gaps or areas of improvement and risks to the business.

3. The major components of business plan are Executive summary, Company background, Industry Overview, Goals and Objectives, Organisational structure, Products and Service Offerings, Marketing and Sales Plan, Financial Plans, References and Summary.

4. Entrepreneur seeking funds to launch a business can convince potential lenders and investors that a market for the product or service really does exist by giving details about the market and industry attractiveness, the growth potential for the business and customer needs. The competition related to the industry and target market can be cited to convince potential lenders and investors. The entrepreneurs need to justify their sources of income and ways of repaying any loans or debts for financing the business. Entrepreneurs can convince by explaining the value of their business idea for the customers alongwith skills and resources availability.