How To Analyze A Business Plan

How To Analyze A Business Plan-7
Also consider the writing skills and attention to detail that went into formulating the plan. This should be a concise "elevator pitch," not a summary of the business plan.In one or two pages, it should convey the market opportunity and the uniquely compelling features of the business that will help it meet that opportunity.

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Evangeline Marzec is a management consultant to small high-tech companies, and has been in the video games industry since 2004.

As a published writer since 1998, she has contributed articles and short stories to web and print media, including e How and Timewinder.

Whether you're an investor, an entrepreneur or a business skills teacher, you'll be exposed to a wide variety of business plans and should have a solid, somewhat standard approach to evaluating each of them.

Analyze each section individually, and then look at the plan as a whole to determine the viability of the business and the likelihood of its success in the manner proposed.

Lenders need to ensure that the business has sound financial planning and a stable income.

Entrepreneurs may find that writing the business plan allows them to view the venture more objectively.

The company should have experienced advisers, either formally or informally.

It is paramount that the principals involved in the business convey their passion and drive toward success with this project.

Good business plans include exit strategies for pulling the initial investment back out of the company, and have a realistic valuation of their shares.

Evaluate the business plan as a whole document, and as a reflection of a real-world company.

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