The reality test that a business plan must pass to attract financing from lenders and investors involves proving that a market for the company's product or service actually does exist, and that the company actually can build it for the cost estimates in the plan.

Question

Quizplus · Accepted Answer

One of the main factors that lenders and investors consider when evaluating a business plan is the market potential for the product or service being offered, as well as the company's ability to bring it to market within the projected cost estimates. Therefore, proving that there is a viable market and demonstrating the feasibility of the plan are important steps in securing financing.

The Reality Test That a Business Plan Must Pass to Attract