Question

1. I need help answering a few questions for my small business class!
   1. What are the two types of business plan? In what situation(s) would you use each type of plan?
2. 2. Why is the executive summary an important section of the business plan?
3. 3. How might an entrepreneur’s perspective differ from an investor’s in terms of the business plan?
   4. Describe the major sections to be included in a business plan.
   5. If the income statement of a financial plan shows that the business will be profitable, why is there a need for a statement of cash flows?

0. 6. What are some common mistakes that entrepreneurs make in writing a business plan.

0. 7. Investors are said to be more market-oriented than product-oriented. What does this mean?

0. 8. What is a business model, and why is it important?

Answer 1

1. What are the two types of business plan? In what situation(s) would you use each type of plan?

Business plans are ending up increasingly more perceived as a vital instrument to contend in the present economy. There are two fundamental explanations behind making a business plan: one is for personal use, to improve your business, and the other is to get a bank advance from new or existing loan specialists. The two kinds of business plans will contain data appropriate to their motivation.

Business Plan for Personal Use

Making a business plan for use in your vendor or marina includes the accompanying things which are basic to making a plan for a bank advance. At the end of the day, do the personal business plan for your own utilization, and after that formalize it, as talked about later, on the off chance that you have to apply for a bank credit.

The things required in the business plan for personal use are as per the following:

1. Proforma spending plan or vital benefit plan – Here you will extend your yearly pay by division and all costs for the following year, at that point separate every thing to month to month projections. It is exceptionally useful to get contribution from the sales reps and office chiefs in this procedure.

2. Income projections – The primary concern of the proforma spending plan is the top line of the income proclamation. Include back noncash costs, for example, devaluation, and subtract money expending things that don't appear on the benefit and-misfortune proclamation, for example, prepaid costs and anticipated records receivable adjusts. Do these for every month so you (and the bank) can more readily decide your money needs amid the year.

3. Activity list – Have a spot to put thoughts down as you are building the financial limit. It is important to catch thoughts that come to you amid this procedure. Spot them in one archive, and after that make an activity rundown to verify as you complete the undertakings. This is a standout amongst the most significant archives that will leave this procedure.

4. Promoting plan – Project the amount you will spend on the various classes of showcasing and when you plan to spend it. This is the reason for your advertising plan for one year from now. Work with a schedule to make a course of events to plan for every occasion. For instance, how long preceding a vessel show do the pontoons should be requested, and the stall space verified, handouts requested, and so forth.

5. Make an approach to screen the anticipated spending plan when contrasted with the real outcomes every month. In the event that you need assistance here, I have another Online Budgeting Service that empowers this one to effortlessly be accomplished for a little month to month charge.

It will put these archives in a ring folio with dividers for every one of the primary classifications. Put the activity list on top, spending plan/income next, at that point cost classifications, for example, personnel, advertising, stock/floorplan intrigue, semi-fixed, fixed and non-working salary and costs. The fastener is anything but difficult to reference amid the year.

Business Plan for Existing Lenders

On the off chance that you are applying for a credit with an existing moneylender as opposed to another loan specialist, utilize the proforma spending plan and income referenced above then make an Executive Summary as the primary page. In this rundown, address any noteworthy changes in the financials (deals, net edges or potentially costs) for a year ago; at that point express your plans for improving the up and coming year. Additionally, address how much non-current stock you did have and (ideally) how little of it you as of now have close by. Kindly don't think little of the estimation of this one page. It is your opportunity to set a positive tone to balance any negatives with which you might bargain.

Business Plan for New Lenders – SBA

Bank credits, particularly floor plan advances, are sellers' most basic concern today. I will list the things that ought to be incorporated into a bank introduction for non-SBA type floorplan advances. To apply for a SBA credit, approach a bank that is exceptionally acquainted with the procedure or utilize an authority as an expert, for example, Bill Thompson of Cardinal Points Network (see Thompson's business plan article on p. 22). It takes somebody who knows about the prerequisites and subtleties of government projects to productively work through their formality. Most people would squander a ton of time endeavoring to do this all alone.

Business Plan for New Lenders, Non-SBA

The most obvious opportunity with regards to getting a non-SBA floorplan advance is to approach a nearby or provincial loan specialist with at least four branches that has cash to loan. Various sellers report that they have experienced the long procedure of applying for an advance yet were turned down, not on the grounds that they were a poor credit hazard, but since the bank did not have the cash to loan. Ordinarily the manner in which this plays out is the bank either gives you an immediate turn down or makes the prerequisites unreasonably extraordinary for any reasonable business person to acknowledge. At the point when first moving toward a bank, inquire as to whether they have cash to loan and look for the non-verbal correspondence. On the off chance that they are reluctant in their reaction, you might need to proceed onward.

When you have chosen a moneylender to apply to, welcome the leader of that bank to visit your task. At some point amid the visit, ask the banker for what good reason you ought to pick their bank to work with. It is likely they will need all your banking business, particularly your business checking account(s), so pose inquiries about how they get things done here too.