Chapter 2 Flashcards
What is feasibility analysis?
a study to assist in making the go/no decision based on a close examination of the product, service, market, industry, and financial data
What are the five industry identified by Porter? page 38
existing competitive rivalry Barriers to entry Threat of substitutes Supplier power Buyer power
What is a business model?
a company’s plan to generate revenue and make a profit from operations
What are the 9 core building blocks that supply answers to critical questions?
Customer segments Value proposition Channels Customer relationships Revenue Streams Key Resources Key activites Key partnerships Cost structure
What is a business plan?
a document that thoroughly explains a business idea and how it will be carried out
Why do you need a business plan?
to save you time and money
it is the key to raising you capital
it is an operations guide
Business plan components
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
What is industry analysis?
a critical size of industry definition, industry size, and growth or decline of product and industry life cycle or any legal concerns
What is environmental analysis?
a review that addresses the roles of the community, region, nation, or the rest of the world as they relate to business
What is proof of market?
an investigation that provides evidence of a market opportunity
What is the target market?
groups defined by common facts such as dimorphic, age, or geography that are primary interest to a business
What is the competitive analysis?
Research that compares an organization with several direct and indirect competitors that is meaningful to customers
What is the marketing mix?
combinations of the four factors
What is the marketing plan?
a statement of the marketing goals and objectives for a business and the strategies to attain them
What are the four factors?
products/services
pricing
promotion
place
How to translate money into action
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
What is a cashflow statement?
a financial statement showing cash receipts for a business overtime
What is a balance sheet?
a financial statement summarizing the assets, liabilities, and net worth of a business
What is liability?
business debt
What is an income statement?
a financial document summarizing income and expense activity over a specified period and shows net profit or loss
What is the breakeven point?
when he volume of sales exactly covers the fixed costs
What is the initial public offering?
first offering of corporate stock to investors on the open (public) market.
What are the business plan suggestions?
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
How to present your business plan
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
