Every business plan should be written with a particular audience in mind. The annual business
plan should be written with a management team and for the employees who have to implement
the plan. However, one of the prime reasons for writing a business plan is to secure investment
funds for the firm. Of course, funding the business could be done by an individual using his or
her own personal wealth, personal loans, or extending credit cards. Individuals also can seek
investments from family and friends. The focus here will be on three other possible sources of
capital—banks, venture capitalists, and angel investors. It is important to understand what they
look for in a business plan. Remember that these three groups are investors, so they will be
anticipating, at the very least, the ability to recover their initial investment if not earn a
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