Business Plan Parts (4-10)

Question 1

fourth part of a business plan

Answer 1

The Target Customers and the Main Value Proposition to the Customer

Question 2

The target customer must be:

Answer 2

1.Sufficient size
2.Sufficient paying capacity
3.Sufficient interest to purchase the product

Question 3

unique selling proposition of the enterprise.

Answer 3

Main Value Proposition

Question 4

The business plan should pinpoint these after knowing where the target customers are exactly concentrated:

Answer 4

What the customer but
How they buy
When they buy
Where they buy
What convinces them to buy

Question 5

Knowing these will help ______.
What the customer buy
How they buy
When they buy
Where they buy
What convinces them to buy

Answer 5

to justify the exact locations and marketing channels to be employed by the enterprise.

Question 6

Four Levels of Segmentation

Answer 6

Geographic
Demographic
Psychographic
Behavioral

Question 7

Can help define the business’ primary target audience.

Answer 7

Four Level of Segmentation

Question 8

Four Levels of Primary Target Audience

Answer 8

1. Where are they (Geographic)
2. Why do they buy (Psychographic)
3. Who are they (Demographic)
4. How do they buy (Behavioral)

Question 9

Fifth part of a Business Plan

Answer 9

Market Justification Based on the:
a. Supply and Demand Situation
b. Customer Needs and Wants
c. Industry Dynamics
d. Macro-Environmental Factors

Question 10

The business plan should estimate the total market supply and determine the major critical factors that influence this market demand and supply.

Answer 10

Supply and Demand Situation

Question 11

The future forecast will follow past trends if __.

Answer 11

If critical factors are expected to remain the same

Question 12

Future estimate of demand and supply should be revised according to the new variables influencing the demand and supply if ___.

Answer 12

If critical factors are expected to change.

Question 13

Forecasting the future demand and supply is assessing the:

Answer 13

Supply and Demand Situation

Question 14

The market analysis and forecasting exercise should lead to a quantification of the current and prospective size of the market. Both the current and potential consumption should then be dissected.

Answer 14

Customer Needs and Wants

Question 15

The ___ discusses these questions:
1. Who are the competing enterprises in the industry and what are their comparative advantages and disadvantages? What business models and strategies are they employing?
2. Who are the suppliers in the industry and what are their capabilities and bargaining power?
3. What are the channels of distribution being used by the industry? How effective are these channels?

Answer 15

Industry Dynamics

Question 16

Macro-environmental Factors

Answer 16

SPEET
Socio-Cultural
Political
Environmental
Economic
Technological

Question 17

Should highlight the business opportunities and threats in the market.

Answer 17

Macro-environmental Factors

Question 18

Sixth section of the business plan

Answer 18

The Product and Service Offering: Description, Evolution and Justification.

Question 19

Portfolio
Features and Benefits
Problem and Solution
Innovation
Proprietary advantages
Development stage
Product life-cycle
Limitations
Visual aids

Answer 19

Description

Question 20

a cycle where the products evolve in terms of features, functionalities, quality, offerings, technology etc. over time to better serve its purpose and customer needs.

Answer 20

Evolution

Question 21

1. reasons for undertaking a project.
2. answers the question “Why is this project needed?”
3. drives all decision-making related to a project.

Answer 21

Justification

Question 22

Seventh Part of a Business Plan

Answer 22

The Enterprise Strategy and Enterprise Delivery Systems: Business Competitiveness

Question 23

Process of the EDS

Answer 23

1. Input (Resource Mobilized)
2. Throughput (The transformation process where input are converted to output)
3. Output (Products/Services)
4. Marketing
5. Desired Outcomes

Question 24

Business outcome should reasonably include:

Answer 24

1. high customer satisfaction level;
2. high sales volume, market share, and market reach;
3. high financial returns; and
4. high people performance, productivity, and moral level

Question 25

Eighth part of a business plan

Answer 25

The Financial Forecasts and Expected Returns, Risks, and Contingencies

Question 26

refers to financial projections performed to facilitate any decision-making relevant to determining future business performance.

Answer 26

The Financial Forecasts and Expected Returns, Risks, and Contingencies

Question 27

Factors included in The Financial Forecasts and Expected Returns, Risks, and Contingencies

Answer 27

Revenue
Expenses
Net Income

Question 28

The important return calculations are the following:
Expected return on ____
Expected return in _____ or ____,
Expected return on ____ ____

Answer 28

sales, assets or investments, stockholders’ equity

Question 29

Steps in creating a Financial Forecast

Answer 29

1. Gather your past financial statements.
2. Decide how you will make projections.
3. Prepare your pro format statements.

Question 30

The business should also calculate the _______, using the ______ . This means estimating the internal rate of return and the expected net present value.

Answer 30

long-term returns
time value of money

Question 31

The business plan should then evaluate both the _____ risk and ____ risk involved.

Answer 31

business, financial

Question 32

Ninth part of a business Plan

Answer 32

Environmental and Regulatory Compliance

Question 33

Last and tenth part of a business plan

Answer 33

The Capital Structure and Financial Offering: Returns and Benefits to Investors, Financiers, and Business Partners.