Chapter 4 - Business Plans Flashcards
What is a business plan?
a document designed to detail the major characteristics of a firm such as its product or service, its industry its market, its manner of operating (production, marketing, management), and its financial outcomes with an emphasis on the firm’s present and future.
What is external legitimacy?
The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner’s family.
What is internal understanding?
The extent to which employees, investors, and family members involved in the business know the business’s purposes and operations.
What is a vision statement?
A very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm.
What is tagline?
also known as a slogan it is a memorable catchphrase that captures the key idea of a business, its service, product or customer.
What is mission statement?
A paragraph that describes the firm’s goals and competitive advantages.
What is an elevator pitch?
a 30-second 100 words or less action-oriented description of a business designed to sell the idea of the business to another.
What is an executive summary?
A one to two page 250 to 500 words overview of the business, its business model, market, expectations, and immediate goals. It is typically put at the start of a business plan and is the most popular summary form for a business plan.
What is a cover letter?
A one page document on business stationery (also called letterhead) that introduces the business plan and the business owner to the recipient and indicates why the recipient is being asked to read the plan.
What is proprietary technology?
A product or service or an aspect of one that is kept as a trade secret or is protected legally using patent, copyright, trademark, or service mark.
What is preselling?
Involves introducing your product to potential customers and taking orders for later delivery.
What is research and development.
R and d is the part of a business and a business plan that is focused on creating new products or services and preparing new technologies, ideas, products, or services for the firm’s market.
What is pioneering business?
A firm whose product or services is new to the industry or is itself creating a new industry.
What is test marketing?
Selling your product or service in a limited area, for a limited time.
What is a new entrant business?
A firm whose product or services is established elsewhere, but is new to this market.
