Business Videos

Question 1

What is a business plan?

Answer 1

A blue print or a sketch of what your business is. No more than 40 pages.

Question 2

What is distinctive advantage?

Answer 2

Something that makes your product/company stand out

Question 3

The first component in the business plan is the Company (An Overview) portion and it should include:

Answer 3

History, Structure, Distinctive Advantage, Strengths and Weaknesses, Long term Goals

Question 4

The second component in the business plan is the Product/Service portion and it should include:

Answer 4

Describe exactly what you are selling, identify the distinctive advantage of your product or service, and identify the customers (groups of people—directly and indirectly, location, industry, etc.).

Question 5

The third component in the business plan is the Industry and Competition portion and it should include:

Answer 5

Describe industry size and competition (history of growth/movement, range of products or services, seasonal, etc.), Industry Expectation (trends, projections, technological advancements), Company Competition (direct (airline) and indirect (train, bus, a business that is competing for the $$)), competitive position (belief in distinctive advantage).

Question 6

The fourth component in the business plan is the Marketing Strategy portion and it should include:

Answer 6

Short term plans (manufacturing, sales, and pricing); Long term plans (3, 5, 10) and (future change in manufacturing, sales, and pricing); and Sales speculations (3 years).

Question 7

The fifth component in the business plan is the Management Team portion and it should include:

Answer 7

Marketing; Finance and Operations; Product/Service Expertise; (Know your Weaknesses); Successful Executive (hiring and firing).

Question 8

The sixth component in the business plan is the Financial Plan portion and it should include:

Answer 8

Income/Operating Statement (realistic starting point, financial model showing future profits(it’s a model not a guarantee) this will help lender’s know what you need); Cashflow diagram (Receivables are your biggest assets (45 days is the average receivables); and Pro Forma Balance Sheet (Difficult document to create; based on all assumptions, covers Assets (current and long term); Liabilities (current and long term); and Equity (Paid-in capital, retained earnings, and owner’s equity). Used internally and externally. Superb measuring device. Can be done by you or an outside person. Look for an accounting package that suits your needs. Make sure you have access to someone who can help you out.

Question 9

The seventh component in the business plan is the executive summary portion and it should include:

Answer 9

business background; product/service; current status/summary or situation; mission statement; a list of distinctive advantages; and financial needs. (appear at the beginning of the plan; no longer than 2-5 pages)

Question 10

The final step in creating the business plan is to make sure you hire someone to look over your business plan.

Answer 10

It should look organized and easy to read.

Question 11

11. The business plan format should be: size 8 ½ x 11 for easy filing; cover with company name and title; Title page; and a table of contents. Research material: Pictures, diagrams, video, etc. (Seeing is often believing).

Answer 11

Mark your plan confidential!

Question 12

Know and understand each and every portion of you business plan that way you can answer each and every question. Know your audience. Know them both on a personal and professional level. Know your audience. Know them both on a _______ ___ _______ _______.

Answer 12

personal and professional level.

Question 13

Business plan presentation: Assign roles or parts; rehearse a head of time; send a detailed letter; learn and know your _______.

Answer 13

company