Different Types of Potential Audience for a Firm’s Business Plan

Tutorial 5: Question 3
3) Describe FIVE (5) different types of potential audience for a firm’s business plan.

The first potential audience for a firm’s business plan is the firm’s owners. These group of people emphasize on clarify the goals of the venture, expected return, risk factors, etc.

The second potential audience for a firm’s business plan is the firm’s employees. They are interested in knowing how the business is structured, and the roles and responsibilities of staff members within it. A clearly written business plan helps the employees of a firm move forward in a consistent and purposeful manner.

Moreover, the external investors are also the potential audience for a firm’s business plan. The examples of external investors including venture capitalists and business angels. External investors are interested to know how the business is set up, the expected financial commitment being sought from them, and their eventual return on investment.

The next potential audience for a firm’s business plan are the external lenders. The examples of external lenders including banks and finance companies. Like other external investors, they will want to know the amount of funds being sought, as well as the security being offered and the firm’s ability to service the debt.

The last potential audience for a firm’s business plan are the suppliers. Suppliers, would naturally like their customers to order more and more, are likely to be quite interested in their growth prospects. A clearly written business plan helps the company to be in a better position to negotiate terms with the suppliers.