2 Flashcards
Business plan definition
a written document containing detailed analysis of business investments, strategy, future plans, and risk factors
importance of business plan for starting and maintaining a business
enable financing
forced to develop on paper before the entrepreneur spends time and money
specify ideas in detail, forces entrepreneur to think of all elements and problems in starting and running
identifies SWOT and how to respond use them with TOWS
define measures of success, tool for controlling success of the business, helps with evaluation later
record business vision for later referral, helps with planning
Who uses a business plan
entrepreneur and their team (understand TWOS, think through ideas in detail, set metrics and future plans as roadmap)
investors (understand TWOS, market, strategies, if business is worth investing in)
partners (business worth partnering with, understand vision, understand TWOS, if partners resources would be useful)
community and government (impact on society)
Parts of a business plan: examples from own business plan
Description of the team and their competencies
Description of the products and services
Market Analysis
Marketing and Sales Strategies
Finance
Description of the Current Situation
Strategic Goals
Summary
Appendix
Product lifecycle: characteristics, examples, strategies
Introduction
slow market growth, small distribution channels,
difficult to imitate
high prices and low profits
high risk takers, powerful personality, fast decision making
Growth
drop in costs and prices due to production capabilities,
market familiarity, larger distribution channels
more competition, need for differentiation
good organizers, managerial skills
Maturity
market saturation, demand and growth in decline
customer loyality and price cuts
efficiency, finding new markets and developing production mix policy, strategy
Decline and Rebirth
technological substitutes, social changes
good motivator, maintain healthy working environment
SWOT + TOWS
Strengths weaknesses opportunities threats
describe each
TOWS, S+O, W+O, W+T, S+T minimize weaknesses to avoid threats use strengths to overcome threats use opportunities to minimize weaknesses use strengths to make use of opportunities
