Essay on The Entrepreneurial Team in Business Plan Process

1428 Words Sep 27th, 2008 6 Pages
1 Introduction
Business Link, describes Business Plan as a “roadmap for future development” and has an essential role for every enterprises. The document narrates “a business, its objectives, its strategies, the market it is in and its financial forecasts” and it serves several functions to business unit from securing external funding to measuring success within the business (2008). As a statement of intent, business plan displays “where you are now and where you want to go” (Cracknell, 2006) and a growth strategy has to be incorporated to turn the business plan from a static document into a dynamic template that promote significant growth instead of survival, and more importantly, driven by people. 2 Identification of the
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2.3 The Value-added Investors
In empirical study by Palliam (2005), where external funds are required, the main source is equity rather than debt in a bridged pecking order from self-funding to external equity in preference over bank finance. This is because debts are personal liability as it invariably requires to be underwritten by personal guarantees carrying distress cost of bankruptcy. Capital budgeting and deal offers are integral part of the financial analysis section which is apparently comprehensible to the entrepreneurs who are promoters of the venture and having awareness of synergies with suitable business fit deriving from potential group of investors or institutions. Other than cash, identify the correct investors from an ideal business fit can significantly enhance value of the collaboration in tapping into the investors’ resources of experience, wisdom and networks. Likewise, it adds “devil’s advocate” into the venture idea to identify new area of opportunity and avoidance of the mousetrap fallacy (p.122). The pre and post money valuation are be presented to pitch and induce interest from the potential investors whose appetite differs. However, bias from information asymmetry in the capital market (Storey, 2005) has its deterrence to identification process in convincing a greenfield project of early stage venture. 3 Conclusion
In Timmons Model,

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