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Management > Chapter 6: The Business Plan: Visualizing the Dream > Flashcards

Chapter 6: The Business Plan: Visualizing the Dream Flashcards

1
Q

A document that outlines the basic concept underlying a business, what problem will be solved, and how you will execute your plan to solve the problem

A

Business plan

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2
Q

A tool to be used by company insiders for the direction and to aid in the development of relationships with outsiders

A

Business plan

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3
Q

A business plan is a tool to be used by these for the direction

A

Company insiders

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4
Q

A business plan is a tool to aid in the development of relationships with whom

A

outsiders

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5
Q

The entrepreneur must convince outsiders to do what?

A

Become linked with the firm

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6
Q

Investors need evidence that the entrepreneur will what?

A

Be around in the future

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7
Q

Only if you do this does the business plan have a chance of making a difference

A

Effectively execute it

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8
Q

An entrepreneur must find a balance between these

A

Planning and becoming operational

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9
Q

More often than not, entrepreneurs resist writing a business plan because

A

they lack the discipline to do so

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10
Q

If you want to capture the future potential of an opportunity and make a difference in lives, planning is the

A

rule, not the exception

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11
Q

What are the two basic choices when writing a business plan?

A

Short or comprehensive plan

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12
Q

What are the main issues found in the short plan?

A 
Problem needing to be solved
Strategy
Measures used to gauge success
Milestones to be met
Tasks and responsibilities of the team
Business model
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13
Q

When is a comprehensive plan beneficial?

A

Describing a startup
Facing significant change
Explaining a complex business situation

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14
Q

What part of writing a business plan is usually the hardest?

A

Getting started

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15
Q

Three elements must be evident in the feasibility analysis before starting a business plan

A

Strong market potential
An attractive industry
Right individual or team to execute the plan

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16
Q

These two issues are of primary concern with the business plan

A

Content and format of the plan

Effectiveness of the written presentation

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17
Q

The opportunity should reflect this

A

The potential and the attractiveness of the market and the industry

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18
Q

Critical resources include what?

A

Money, human assets, and hard assets

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19
Q

The entrepreneurial team must possess what?

A

Integrity, and breadth and depth of experience

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20
Q

The goal of the financing structure is to find

A

A win-win deal

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21
Q

The context of an opportunity includes what?

A

External factors

22
Q

The business plan should give consideration to these

A 
Opportunity
Critical resources
Entrepreneurial team
Financing Structure
Context
23
Q

The business plan needs to demonstrate that the entrepreneur has done what?

A

Pulled together the right opportunity, resources, people, and financing structure, all within the right context

24
Q

What should the cover page include?

A 
Company name and information
Tagline and logo
Name of contact person with information
Date of preparation
Confidentiality disclaimer
Number of copy
25
Q

This provides a sequential listing of the sections of the plan

A

Table of contents

26
Q

A one to three page overview of the significant points, intended to motivate the reader to continue reading

A

Executive Summary

27
Q

Key characteristics of the industry, including different segments, and the niche where you can compete

A

Industry, Target Customer, and competitor Analysis

28
Q

Company objectives, the nature of the business, its primary product or service, its current status and history, and the legal form of the organization

A

Company Description

29
Q

Justification for why people will buy the product or service, based on its unique features

A

Product/service plan

30
Q

Marketing strategy, including the methods of identifying and attracting customers, selling approach, type of sales force, distribution channels, types of sales promotions and advertising, and credit and pricing policies

A

Marketing Plan

31
Q

Operating and manufacturing methods, operating facilities, quality-control methods, procedures to control inventory and operations, sources of supply, and purchasing procedures

A

Operations and Development Plan

32
Q

Description of the management team, outside investors and/or directors, and plans for recruiting and training employees

A

Management Team

33
Q

Any known inherent risks in the venture

A

Critical Risks

34
Q

How much capital the entrepreneur needs and how the money will be used

A

Offering

35
Q

Ways an investor and the entrepreneur may be able to harvest their business investment

A

Exit Strategy

36
Q

Contemplated sources of financing

Any historical financial statements

A

Financial Plan

37
Q

Various supplementary materials and attachments to expand the reader’s understanding of the plan

A

Appendix of supporting documents

38
Q

This briefly covers all aspects of the business plan

A

Synopsis

39
Q

This tells a story, conveying greater excitement than the synopsis

A

Narrative

40
Q

At the most basic level, prospective investors have a single goal:

A

To maximize potential return while minimizing the risk they are taking

41
Q

How are investors oriented?

A

More market oriented than product oriented

42
Q

What is the essence of the entrepreneurial process?

A

To identify new products or services that meet an identifiable customer need

43
Q

How should your product/service be described in the business plan?

A

Lay terms

44
Q

Four key elements that make up the business model

A

Revenue model
Cost Structures
Maximum investment
Business model risk

45
Q

Revenue stream in which a firm’s revenues come from a single product or service

A

Single Stream

46
Q

Revenue stream in which a business realizes revenues from a combination of multiple products and services

A

Multiple Stream

47
Q

A revenue stream where a company’s revenue comes from selling one or more products and/or services as a way to generate revenues from other products and/or services

A

Interdependent Streams

48
Q

Revenue stream in which one or several revenue streams are sold at a loss in order to create sales in a profitable revenue stream

A

Loss Leader

49
Q

Costs that do not vary at all with volume, such as rent expenses

A

Fixed Costs

50
Q

Expenses that vary directly and proportionately with changes in volume

A

Variable Costs

51
Q

Expenses that include both variable costs and fixed costs, which vary in direction of changes in the volume of sales

A

Semi-Variable Costs

Management (20 decks)

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