What Is a Business Plan?

What is a business plan? If you're thinking of starting a new business or you're seeking loans, lines of credit or investors, you may need to show a business plan to potential investors. A good business plan is a living document filled with information you and your colleagues need to keep your business competitive and viable in today's tough economic climate. Test your knowledge of what comprises a business plan by taking this 10 question survey. Choose the answer that best completes each sentence.

1. A business plan is which of the following?

• A living document, meaning you can update it after it's done.
• Set in stone, once it's done, it's done, and you'd better not touch it.
• Totally unnecessary. After all, aren't entrepreneurs creative types who fly by the seat of their pants?
• None of the above.