GENERAL KNOWLEDGE

Detailed explanation-1: -A business plan is a very important and strategic tool for entrepreneurs. A good business plan not only helps entrepreneurs focus on the specific steps necessary for them to make business ideas succeed, but it also helps them to achieve short-term and long-term objectives.

Detailed explanation-2: -A business plan is often prepared by an existing company to ensure that growth is properly managed. A business plan is usually not required when obtaining financing for a start-up. If a business plan is completed for a start-up, it may help the entrepreneur avoid costly mistakes.

Detailed explanation-3: -A business plan helps to sell the opportunity to invest in your business to potential funders. Therefore, it’s crucial to have a compact and realistic plan that clearly communicates your company’s objectives, financial performance and strategy.

Detailed explanation-4: -Sources of Financing for small business or startup can be divided into two parts: Equity Financing and Debt Financing. Some common source of financing business is Personal investment, business angels, assistant of government, commercial bank loans, financial bootstrapping, buyouts.