Mharichu A.

Bermio

HCA – MWF/3:00-4:00

November 13, 2022

THC 109

FINALS AS1

Chapter 9 Formative Assessment: Discuss the importance of each part of the business plan.

1. Executive Summary – The executive summary of your company strategy serves as an overview for
readers. It should explain what they can learn and encourage them to read more. “Before
deciding to study the remainder of the business plan, investors will first read the executive
summary.
2. Business Description – Your business description should explain how your company helps
customers and where it fits in the market to readers like lenders, investors, prospective partners,
and even workers. Readers should grasp your company's mission and operations from your
business description.
3. Market Analysis – Your plan's market analysis section offers proof that there is a market niche your
business can take advantage of. This research also provides the framework for your marketing
and sales strategy.
4. The Management Team – A good management team is essential if you want the company to
expand and prosper. A management team is crucial for distributing leadership responsibilities as
an organization develops. It is vital to keep in mind that management teams may function at
various levels. Consider creating groups to assist in managing certain areas or divisions. This
benefits your company and offers more chances for employee engagement and growth. It could
be helpful to locate a training program that describes how a management team might aid your
company.
5. Operations – Your firm's objectives, goals, processes, and timetable are all explained in great
depth in the operations portion of your business plan. Because it forces you to consider strategies
and timelines, an operations plan benefits both investors and you and your team.
6. Critical Risks – A company can only specify its long-term goals with a robust risk management
strategy. If done correctly, risk management protects an organization against losses and helps it
take advantage of possibilities, making it one of the most crucial components of an organization.
7. Financial Projections – The fundamental small company strategy must include financial estimates,
particularly for startups. You may have a thorough picture of your financial condition and identify
your maximum profit potential by considering manufacturing costs, market pricing, and demand
for your services.
8. Appendix – You may include important information in your business plan that needs to fit inside
the plan's body in the appendices neatly. In most cases, it is utilized to provide examples of the
content or data mentioned in the business plan but is optional to be included in the body.

Chapter 9 Summative Assessment: How important is a business plan

- A well-written business plan is crucial since it enables entrepreneurs, small business owners, and
their staff to outline their objectives and monitor their success as their company expands.
When launching a new firm, business strategy should come first. Business plans are crucial for
recruiting investors because they enable them to assess if your company is headed in the
correct direction and is worthwhile for their capital. The main benefit of a business strategy is
that it aids in decision-making. Making decisions and handling crises is a constant practice in
entrepreneurship. Small firms sometimes need more resources to sit down and carefully weigh
all the implications of a particular choice. A company strategy may help with that. A thorough
business plan requires you to sit down and consider essential aspects of your enterprise before
you launch, such as your marketing approach and the items you'll offer. You already answer
many difficult questions. And contemplating your entire plans in great detail may also aid in
your understanding of how selections will affect your overall approach.
 REFERENCES

Business Plan - Appendices. (n.d.). The Business Professor, LLC.

https://thebusinessprofessor.com/en_US/business-management-amp-operations-strategy-
entrepreneurship-amp-innovation/business-plan-appendices

CareersinRisk.com. (2018, April 19). The Importance of Risk in Business.

https://www.careersinrisk.com/article/the-importance-of-risk-in-business/

Develop your management team. (n.d.-b). https://www.infoentrepreneurs.org/en/guides/develop-

your-management-team/

How to Create a Business Operations Plan - Grasshopper Academy. (n.d.). Grasshopper.

https://grasshopper.com/academy/developing-a-business-plan/operations-plan/

Lindzon, J. (2022, October 26). The importance of a business plan.

https://www.waveapps.com/blog/importance-of-a-business-plan

The Importance of Financial Projections in Your Business Plan. (2015, October 14). H&J Certified Public
Accountants. https://h-jcpa.com/news/accounting-solutions/the-importance-of-financial-projections-in-
your-business-plan/

Thiefels, J. (2022, September 27). Why your business plan's executive summary is so important (+ how to
write one). https://www.waveapps.com/blog/importance-of-executive-summary-in-business-plan

Williams, M. (2024b, January 26). How to do a market analysis for your business plan.
https://www.wolterskluwer.com/en/expert-insights/market-analysis-for-your-business-plan

Yvette, M. (2022b, October 4). How to write a business description that makes your business plan shine.
Yelp for Business. https://business.yelp.com/plan/how-to-write-a-business-description/