chapter 2

Question 1

Feasibility Analysis

Answer 1

a study to assist in making the go/no go decision based on a close examination of product/service market industry and financial data in a sufficient degree of detail to ensure confidence in the results

Question 2

Porters 5 Industry Forces

Answer 2

1 Competitor rivalry
2 barriers to entry
3 threat of substitutes
4 supplier power
5 buyer power

Question 3

Business Plan defined

Answer 3

document that thoroughly explains a business idea and how it will be carried out
includes road map to success history and plan for an organization and meets the needs of various audiences

Question 4

Purpose for Business plan

Answer 4

used to organize thoughts save time and money determine business viability
used to raise money from investors and lenders
help guide the operation of business

Question 5

Components of a Business Plan

Answer 5

1 executive summary
2 mission vision and culture
3 opportunity analysis and research testing ideas
4 marketing strategy marketing mix products price promotion place
5 financial analysis and projections cash flow income statement balance sheet break even point
6 assets= liabilities + owners equity

Question 6

Cover page

Answer 6

professional neat and attractive including the name of business and principles date contact information and any confidentiality statement

Question 7

Company Description

Answer 7

if already established the history of the company must be included in the plan
if start up it should be used to describe the background story of company
legal form of business noted

Question 8

Promotional Plans

Answer 8

advertising publicity and other marketing devices such as discount coupons or giveaways
publicity is free advertising is purchased
description of promotional plans specific with respect to methods used timeline for implementation and budget

Question 9

Funding Request and Exit Strategy

Answer 9

amount and type of funds requested
exit plan
milestones

Question 10

Appendices

Answer 10

resumes
sample promotional materials
product illustrations/diagrams
detailed financial projections

Question 11

Business plan suggestions

Answer 11

1 write for audience
2 show skin in the game
3 be clear and concise
4 use current data and reports
5 choose a voice and stick with it 
6 use a consistent easy to read format
7 number and label
8 present it professionally

Question 12

Presenting the Plan

Answer 12

formal or informal
few minutes to couple hours
should be articulate well thought out organized rehearsed polished and professional