Chapter 6: The Business Plan Flashcards
It is a document that helps small business owners determine what resources are needed to achieve the objectives of the firm, and provide a standard against which to evaluate results.
It is the business blueprint.
Business Plan
Main Purposes of Business Plan:
- To serve as management’s guide during business lifetime
- To fulfill requirements for securing lenders and investors
Expected developments or changes in environment and situations may happen, which may lead to irrelevancy in business plans. What should be done?
Revising the plan
The business plan must be easily identifiable through a ____
The next page should provide a _____ so the readers can easily find information
Title/Cover Page
Table of Contents
Portion of the business plan that summarizes the plan Ms states the objectives of the business.
Prepared after business plan is written.
Executive Sumarry
In Description of the Business, it has two parts:
- Short explanation of industry
- Description of the business
The following must be presented in the Description of Product or Service
- Important features of product
- Detailed description of how product is used
- What makes product different
Its objective is to show that the firm has a competitive edge over the others
Description of Product or Service
It refers to what the SBO plans to do to achieve market objective of the firm
Formulated after undertaking market research
Market Strategies
Under Market Strategy
It aims to identify the portion of the total potential market the firm will serve. It involves defining the market in terms of size, demographics, structure, growth prospects, trends, and sales potential.
Definition of the Market
Under Market Strategy
It is about how the firm differentiates its product or service from competitors, targeting a specific niche.
This strategy identifies a target market segment and develops a mix to address their desires, aiming to establish the firm’s product or service identity in the buyer’s mind.
Positioning Strategy
Under Market Strategy
Pricing the product or service is a vital component of the business plan. To achieve objectives, maintaining the right price is crucial.
Pricing Strategy
Under Market Strategy
It is the process of moving goods and services from the firm to buyers. The selected channel should provide a strategic advantage.
Distribution Strategy
Under Market Strategy
Advertising, Packaging, Public Relations, Sales promotions, Personal Sales
Promotion Strategy
