Business Plan Flashcards
is a written document prepared by the entrepreneur that describes all the relevant external and internal elements involved in starting a new venture
business plan
for a ______, it is important to address both long-term as well as short term strategies for the first 3 years.
for a start up, it is important to address both __________ as well as ________ ________ for the first 3 years.
for a startup, it is important to address both long-term and short-term strategies for the first ____________
3 years
the business plan is sometimes referred to as as
game plan or road map
questions that the business plan answers
- where am i now?
- where am i going?
- how will i get there?
these are people that require or request a business plan
potential investors, suppliers, customers
the business plan should be prepared by
the entrepreneur
they are useful in the preparation of the business plan
lawyers, accountants, marketing consultants, engineers
some of the needed resources can be found through services offered by:
- small business administration (sba)
- senior corps of retired executives (score)
- small business development centers (sbdcs)
the ________ also provides a wealth of information as well as actual sample templates or outlines for business planning
internet
before committing time and energy to preparing a business plan, the entrepreneur should do a ________________ to see whether there are any possible barriers to success
quick feasibility study of the business concept
the information, obtainable from many sources, should focus on
marketing, finance, and production
before beginning toe feasibility study, the entrepreneur should ________________
clearly define the goals and objectives of the venture
name the parts of the upside-down pyramid approach to gathering market information
- general environmental and demographic trends
- national food industry trends
- local environmental and demographic trends
- local food industry trends
- local competition strengths and weaknesses
2 types of a business plan
short plan, comprehensive plan
other name for short term plan
abbreviated business plan
presents only the most important issues and projection for the business
short plan
for short plans, it is typically in the form of _______________________
ppt presentations not more than 30 minutes
provides an in-depth analysis of the factors that will determine the firm’s success or failure, along with the underlying assumptions
comprehensive plan
the first page a banker or investor sees. it should be structured neatly and appealing to your intended audience
cover page
content of the cover page
- company name, address, phone number, fax number, website
- tagline and company logo
- name of contact person with info
- date on which the business plan was prepared
- confidential and proprietary statement
- disclaimer
-number of the copy
statement that denies something specially responsibility, it delinits the scope of rights
disclaimer
to help keep tract of how many have been given out
number of the copy
a sequential listing of the sections of plan, with page numbers; allows the reader to spot-read the plan rather than reading it from front to back
table of contents
a brief explanation of the key points in a business plan; its purpose is to give the reader a convincing reason to read the full plan
executive summary
the executive summary should not be more than __ pages
2
the executive summary should include the _______________
most importsnt information from each section of the plan
content of the executive summary
- description of proposed business and business model
- description of the msrket opportunity to capture or market problem the business solves
- reasons for why this is an attractive business opportunity
- key distinctions or differentiatiors of the business versus competitors
- overview of the sales, marketing, and operation strategy and plan
- description of the execution plan and timeline
- overview of projected financials containing revenues, costs, profits, and assumptions
a company’s plan for how it will generate revenues and make profit
business model
a situation in which a company can meet an unsatisfied customer’s need before its competitors
market opportunity
contains the essence of the enterprise; an idea for a business
business concept
contains the essence of the product; an idea for a product
product concept
the future and kong term prospects of the enterprise
business goals
a measurable value that demonstrates how effectively a company is achieving key business objectives
performance indicators
management and organiztion content
- company name, logo, address
- vision and mission statements
- key personnel
- workforce and support personnel
- organizational chart
- ownership, capitalizations, compensation, and incentices
- external management support
what your company wants to do; expresses the soecific aspirations of a company, the major goal for which it will strive
mission
what your company wants to beckme; establishes the scope and purpose of a company and reflects its value and beliefs
vision
how your products/services will be delivered to customers
distribution and logistics
details of a company’s ownership
ownership (structure)
details the source of your company’s initial funding
capitalization
external companies or organization that support the company’s management
external management support
provides the purpose of the product/service
product/service plan
the distinguishing characteristics of a product or service that helps boost is appeal to potential buyers
product’s unique features
supplies nees to operate the business
material requirements
details of where the materials will be bought
sources of supply
step by step details of how the product will be made
process
step by step details of how the business will opeerate and controlled in times of problems
production/service process ande controls
details of how to get your products to your customers
distribution and logistics
set of rules that the business should abide in their specific industries
regulations
perceived regulatory concerns in relation to the operation of the business
compliance issues
discusses how a company makes its customer aware of its products and services
market plan
an assessment, which allows you to determine how suitable a particular market is for your industry
market analysis
the customer’s need or desire to own the product or experience the service
demand
a stock of a resource from which a person or place can be provided with the necessary amount of that resource
supplysupply
someone or something that is trying to best or do better than others in selling of goods or services
competitors
the action or business of promoting and selling products o services, including market research and advertising
marketing
a plan by a business or individual on how to go about selling products and services and increasing profits
sales strategies
attributes that can be added to the product definition to extend the description of each product
product/services characteristics or features
examples of product/services characteristics or features
size, color, quality, shape, or weight
the wholesale and retail prices for its products or services
pricing policy (strategy)
the amount of revenue a company expects to earn at some point in the future
slaes projection
presents forecast for the future of the business; it explains the assumptions made when forecast figures were calculated
financial plan
non-recurring costs associated with setting up a business, such as accountant’s fees, legal fees, registration charges, as well as advertising, proportional activities, and emoloyee training
startup cost requirements
a forecast of future revenues and expenses
financial projections
used to determine the number of units the business needs to sell in order to avoid losses
breakeven analysis
annestimate of income and expenditure for a set period of time
budget
various supplementary materials and attachments to expand the reader’s understanding of the plan
appendix of supporting documents
