Question

Having a sound business plan is essential for securing finance, regardless of the type of loan sought. Explain. (100–150 words)

Answer 1

A sound business include the information on the following points (1) Market opportunity (2) Industry analysis (3) team and members associated with the business (4) business or operational model to be followed (5) financial performance or projected financial results (6) sources and uses of funds.

Any financial institution or bank wants to seek maximum information related to business plan so that it can assess the feasibility of the proposed business plan. generally business proposal are evaluated on the basis of feasibility study of business plan on the ground of technical, economical, social & environmental variables. A well prepared business plan provides information on available market opportunities and analysis of the industry in which business is going to be a part.

Management and technical experts who are associated with the project, are to ensure that sound technical and professional experts are associated with the project. Apart from this financial performance and project financial results are also increase the attractiveness of the business plan. Sources of funds and where these funds would be utilized also make it clear that how much of funds would be invested by entrepreneur.

So a sound business provides a detail about the company, its management, financial performance and background along with technical specification and also for prospects for growth and development.