The business plan is mainly used to convince financial partners to invest in the company. The banker will examine the company’s plan to determine its solvency, i.e. its ability to meet its financial commitments. The equity investor will use the business plan to assess the value of the company and its potential for long-term profitability.

The business plan can also be used internally to make an investment decision or to communicate the company’s objectives to non-financial partners.

Suppliers of a new business may also ask to see a business plan before entering into a contractual relationship. Suppliers use the business plan to assess both the business potential of the company and its risk of default.

This video will show you all the ins and outs. Listen carefully and at the end you will see a button that will take you through the entire exercise.

After the exercise, you will have to watch the video that gives both the solution of the exercise, a worksheet with solution and additional information needed.

You can then proceed to the viewing of Step 5 on productivity.

Enjoy the video!