7th Edition

Apuntes

7th Edition Pride • Hughes • Kapoor BUSINESS Foundations of 5-5 The Importance of a Business Plan Lack of planning can be as deadly as lack of money to a new small business. Planning is important to any business, large or small, and never should be overlooked or taken lightly. A business plan is a carefully constructed guide for the person starting a business. Jeff Bezos drafted a business plan for an online bookseller while on a cross-country road trip. It helped him convince family members and friends to invest in what would become Amazon, now a $1.7 trillion company. 25 Consider the business plan a tool with three basic purposes: communication, management, and planning. As a communication tool, a business plan serves as a concise document that potential investors can examine to see if they would like to invest or assist in financing a new venture. It shows whether a business has the potential to make a profit. As a management tool, the business plan helps track, monitor, and evaluate the progress. The business plan is a living document; it is modified as the entrepreneur gains knowledge and experience. It also serves to establish timelines and milestones and allows compar...