CHAP 6 Flashcards
is a document that summarizes the operational and financial objectives and contains the detailed plans and budgets showing how objectives are to be realized. IT is the road map to the success of your business.
business plan
Four Importance of a Business Plan
- To raise money for business
- To make sound decisions
- To help identify potential weaknesses
- To communicate ideas with stakeholders
Business planning done right connects the dots in your business so you get a better picture of the whole.
See the whole business
Startups and small business need to focus on their special identities, their target markets, and their products or services tailored to match
Strategic Focus
Business planning helps you keep track of
the right things, and the most important things
Set priorities
With good planning process you regularly review assumptions, track progress, and catch new developments so you can adjust
Manage change
Good planning process sets expectations and tracks results.
Develop accountability
Good business planning connects the dots in cash flow
Manage cash
main business tactics that match strategy
Strategic alignment
These are key goals you want to achieve, like reaching a defined sales level, hiring that
sales manager, or opening the new location.
Milestone
Put your performance indicators and numbers to track into a business plan where you can see them monthly in the plan review meeting
Metrics
The business planning process becomes a regular reminder.
Realistic regular reminders to keep on track
Various business plan outline
- Executive Summary
- Company Description
- Product or Service
- Market Analysis
- Strategy and Implementation
- Management Team
- Financial Plan
The executive summary should address these main points
Purpose
Problem
Problem Analysis
Results of analysis
Recommendations
provides an overview of a larger document or
research and is usually the first thing your reader will see.
Executive Summary
It is also known as the company overview that includes the history, mission
statement, vision, goals, objectives, products or services, management team,
organizational structure and location of the company or the organization
Company Description
the company will offer to their prospective
clients or customers that will benefit them
Product or Service
This can be done thru surveys and
interview to know what is the trends in the market as well as what the customer
really needs for their daily activitie. It is a quantitative and qualitative assessment of a market
Market Analysis
This will provide the company with ideas and serve as a guide in achieving the goals and objectives of the company through implementation.
Strategy and Implementation
composed of the members of the team, their personal strategies and information
Management Team
includes the profit, cash flow, balance sheet, break-even analysis, assumptions and
business ratios of the company.
Financial Plan
startup business, they use the _______ in which it is an adaptation of the business model canvas
Lean Canvas or Lean Startup Canvas
9 segments of lean canvas
problem (existing alternatives)
solution
key metrics
Unique Value Proposition (High level concept)
Unfair Advantage
Channels
Customer Segments (Early Adopters)
Cost Structure
Revenue Streams
