After Receiving Financing, Do INC. 500 Companies Continue to Utilize Their Business Plan?
AbstractSmall, successful companies included on the INC. 500 list were surveyed to determine whether these companies use a business plan once financing has been obtained. The responding CEOs indicated that the business plan is a document of substantial importance in obtaining funding and in managing operations. Additionally, these CEOs were questioned regarding the importance of specific sections of their business plan when using the business plan to: (1) obtain funding and (2) manage their business. When it comes to obtaining funding, INC. 500 CEOs rank the Executive Summary and the Financial Section as the top two most important sections of the business plan. When it comes to managing the company, the Finance Section of a business plan was ranked first in importance over all other sections. CEOs and top management of small companies should take appropriate steps to craft an effective business plan, revise it periodically to reflect a changing environment, and refer to it often to assist their company in achieving even greater success in their operations.
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