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Describe why a simple business plan is important and identify its two main features.

Question

Describe why a simple business plan is important and identify its two main features.

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Solution

A simple business plan is important for several reasons:

  1. Direction: It provides a roadmap for your business. It sets the objectives, the strategies to achieve them, the obstacles to overcome, and the solutions to these obstacles.

  2. Attract Investors: A business plan is a tool to communicate with potential investors. It shows them that you have a clear strategy and that you've thought about your business model and financial projections in detail.

The two main features of a simple business plan are:

  1. Executive Summary: This is a brief overview of the business plan. It should provide a quick snapshot of your business, the market opportunity, the strategy you will follow, and why your team is uniquely qualified to execute the plan.

  2. Business Description: This section provides more detailed information about the company, what it does, and its strategy. It should include information about the market, the competition, and how your product or service is different. It should also include your marketing and sales strategy.

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