Work in small groups.
1) Have any of you ever had to consider or draw up a business plan? Why do you think an entrepreneur needs a business plan? Give specific reasons to support your answer.
What information do you think a business plan must represent?
Reading
1. Skim through the text 2 and think of the suitable title.
TEXT 2
A business plan is a detailed written statement that describes the nature of the business, the target market, the advantage the business will have in relation to competition, and the resources and qualifications of the owner(s).
It may be months or even years between the birth of an idea and the starting of a business. During this time the would-be entrepreneur should be developing and refining the business plan. The business plan is likely to highlight problem areas in a proposed business. There are three reasons for this:
1. A thorough investigation into the costs, markets and available finance, clearly presented will identify the areas of weakness in the original idea and allow them to be eradicated before they cost money or lead to failure.
2. A good business plan will impress people like bank managers, both in its information and the business-like qualities of the person who has drawn it up.
3. The discipline of drawing up a business plan can draw attention to the areas in which the business lacks experience.
