The Science:

Business Plans:
A business plan defines the business's purpose, how the business operates and its financial requirements. Many groups develop a business plan before starting a business. The plan helps the business owners in several ways. It formally documents the business operations and requires the business owners to resolve key issues. The plan describes how money will initially be acquired to start the business, how income will be generated once the business has started, how the company will grow, the company's competition and contingencies (in case things do not go as planned). The business plan acts as the companies "resume". It provides critical financial information for lenders and is often used as part of a loan application.

Perhaps you are just starting a business, as in our Kite Factory lesson. Where will you get the money to initially start the business? Will you borrow the money? If so the lender would like to understand how they will be paid back and also make sure that you have a good strategy to operate a successful company in return for their investment.

Although the business plan we have asked you to do is very simple in nature, it still answers these key questions: