1. Which section or sections of a business plan submitted to venture capitalists are the strongest and
which sections are traditionally the weakest? Identify and discuss at least two weak sections of
traditional business plans.
Solution
As business plan is a written description of your business's future. That's all there is to it--a
document that desribes what you plan to do and how you plan to do it. If you jot down a
paragraph on the back of an envelope describing your business strategy, you've written a plan,
or at least the germ of a plan.
Entrepreneurs approaching venture capitalists must have a business plan; however, it should be
short and concise, rather than presenting the business in full detail because venture capitalists
will conduct exhaustive due diligence. The plan should spell out the amount of funding the
entrepreneur is seeking but should not detail the terms.
Scetion as follows: