Question

Which part of the business plan do you think is most important? Why? What do you think it takes to convince someone to invest in a business? Why do you think banks require business plans before they will lend a business money?

Answer 1

Marketing in a business is the most important in business plans. Because, marketing involves offering, selling and buying of the products/service through market strategies, which are directly related with company’s revenue. Therefore marketing in a business plan is very crucial in the business plans.

Good communication skills, proper understanding of the business, decision making capabilities, needs of the buyer/investor, business profit for the investor, business offers etc are specific things it require in order to convince someone to invest in business.

All the banks require the business plans before they lend business money. Because, banks will analyze the business as per current market based on the sales, population, probable business outcome, probable revenue, business risk, capacity of organization to pay the money back, company assets and liabilities associated with the business. Etc. hence based on the above criteria banks will lend the money for the business.