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BUSINESS PLAN |
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A documented expression of the facts concerning a business with a forecast of the desired future direction. It is like a roadmap or guidebook concerning where the business wants to go. A business plan usually covers one to five years of historical facts and one to five years of projections into the future. The two main uses are for guidance in decision making by the owner-manager and for presentation to a financial institution when applying for a loan. A business plan is especially important for a start-up business because it sets the course of actions necessary for survival of the business. The main elements to include in a business plan are an executive summary with a description of the firm and its future; profiles of the owner and managers; product description; a description of the industry; marketing plans; and a financial plan. See Self-Help Guide B on "How to Write a Business Plan." See also MARKETING PLAN; FINANCIAL PLAN, LONG-RANGE PLAN; STRATEGIC BUSINESS PLAN.
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ADVANCE PAYMENT |
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In international trade, payment for goods by a foreign customer prior to receiving the goods. This method of payment is beneficial to the supplier but is very risky for the foreign customer because the goods may not get shipped as planned, the goods may get lost or the goods could be damaged during shipment.
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