Chapter 3 Flashcards
Business plan
A written document that describes all the steps necessary for opening and operating a successful business.
Cover letter
A letter that introduces and explains an accompanying document or set of documents
Executive summary
A short restatement of the report portion of a business plan
Harvest strategy
An exit strategy, or the way an entrepreneur intends to extract, or harvest, his or her money from a business after it is operating successfully.
Pro forma financial statement
A financial statement based on projected revenues and expenses.
Service corps of retired executives (SCORE)
Group made up of retired executives who volunteer their time to provide entrepreneurs with real-world advice and know-how
Small business administration (SBA)
Independent agency of the federal government that was created to help Americans start, build, and grow businesses
Small business development centers (SBDC)
Centers that provide management assistance to current and prospective small business owners
Statement of purpose
Brief explanation of why the writer of a business plan is asking for a loan and an explanation of what he or she plans to do with the money.
Trade associations
Organizations made up of professionals in a specific industry
Why is a business plan important?
It makes you think about all aspects of your business, helps you secure financing for your business, helps you secure financing for your business, enables you to commute your ideas to others, and serves as a tool for managing your business.
The main body of the business plan should include the following sections:
Introduction, marketing, financial management, operations, and concluding statement
