BBUSS 2403  • BUSINESS PLANNING
                          CHAPTER 1
                           Why Plan?
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       Chapter One
               Why plan?
                   – Reasons for writing a business plan
                   – Who reads the business plan—and 
                      what are they looking for?
                   – Guidelines for writing a business 
                      plan
                   – Types of business
                   – The plan for the book
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                 Introduction
    • Increased interest in the study of 
       entrepreneurship
    • 2,100 colleges and universities offer 
       entrepreneurship coursework
    • About 400,000 students took at least        
          one entrepreneurship course in 2005
    • 72% of American adults have           
       considered starting a business 
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       The Business Plan
                      • A written document that 
                         carefully explains every aspect 
                         of a new business venture
                      • Inside the firm, the business plan 
                         is used to develop a road map
                      • Outside the firm, the business 
                         plan introduces potential 
                         investors and other stakeholders 
                         to the business opportunities
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       Reasons for Writing 
       a Business Plan
         Two main reasons to write a business plan:
          – Internal—Forces the founders of the firm to 
            think through every aspect of their new 
            venture
          – External—Communicates the merits of a new 
            venture to outsiders, such as investors and 
            bankers
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