Chapter 2

Question 1

What is feasibility analysis?

Answer 1

a study to assist in making the go/no decision based on a close examination of the product, service, market, industry, and financial data

Question 2

What are the five industry identified by Porter? page 38

Answer 2

existing competitive rivalry 
Barriers to entry
Threat of substitutes
Supplier power
Buyer power

Question 3

What is a business model?

Answer 3

a company’s plan to generate revenue and make a profit from operations

Question 4

What are the 9 core building blocks that supply answers to critical questions?

Answer 4

Customer segments
Value proposition
Channels
Customer relationships
Revenue Streams
Key Resources
Key activites
Key partnerships
Cost structure

Question 5

What is a business plan?

Answer 5

a document that thoroughly explains a business idea and how it will be carried out

Question 6

Why do you need a business plan?

Answer 6

to save you time and money
it is the key to raising you capital
it is an operations guide

Question 7

Business plan components

Answer 7

cover page and table of contents
Executive summary "snapshot of your business"
Mission and culture "your dreams"
Company description "background"
"testing ideas"
Reaching customers
Making the plan happen
translating actions to money
The ask and return
Making the case in greater detail

Question 8

What is industry analysis?

Answer 8

a critical size of industry definition, industry size, and growth or decline of product and industry life cycle or any legal concerns

Question 9

What is environmental analysis?

Answer 9

a review that addresses the roles of the community, region, nation, or the rest of the world as they relate to business

Question 10

What is proof of market?

Answer 10

an investigation that provides evidence of a market opportunity

Question 11

What is the target market?

Answer 11

groups defined by common facts such as dimorphic, age, or geography that are primary interest to a business

Question 12

What is the competitive analysis?

Answer 12

Research that compares an organization with several direct and indirect competitors that is meaningful to customers

Question 13

What is the marketing mix?

Answer 13

combinations of the four factors

Question 14

What is the marketing plan?

Answer 14

a statement of the marketing goals and objectives for a business and the strategies to attain them

Question 15

What are the four factors?

Answer 15

products/services
pricing
promotion
place

Question 16

How to translate money into action

Answer 16

Determine sources and uses of capital
Determine your cashflow projections
Have a balance sheet for projections
income statements for three years
break even analysis
ratio analysis
risks and assumptions

Question 17

What is a cashflow statement?

Answer 17

a financial statement showing cash receipts for a business overtime

Question 18

What is a balance sheet?

Answer 18

a financial statement summarizing the assets, liabilities, and net worth of a business

Question 19

What is liability?

Answer 19

business debt

Question 20

What is an income statement?

Answer 20

a financial document summarizing income and expense activity over a specified period and shows net profit or loss

Question 21

What is the breakeven point?

Answer 21

when he volume of sales exactly covers the fixed costs

Question 22

What is the initial public offering?

Answer 22

first offering of corporate stock to investors on the open (public) market.

Question 23

What are the business plan suggestions?

Answer 23

write for your audience
show that you have skin in the game
Be clear and concise
Use current data and reports from your industry
Choose a voice and stick with it
Use a consistent, easy to read format
number and label
Present it professionally

Question 24

How to present your business plan

Answer 24

can either be formal or informal and may be anywhere from 5 min to a couple of hours. Should be well thought out, organized, concise, rehearsed, polished, etc