Chapter 8 Flashcards
Small businesses and reasons they fail
<500 Employees
Lack of planning
Failure to delegate
Unwillingness to change
Forgetting that cash is king
Lack of objective targets
Failure to ask the right question
1st part of a business plan
Executive Summary
Includes mission statement
comparison of where company is v.s. future projections
2nd part of a business plan
Company Description
Includes an overview of the business:
nature of business
marketplace and how your product will meet its needs
Your competitive advantage
3rd part of the business plan
Market Analysis
Includes
Industry Knowledge
Information on target market
Competitive analysis
4th part of the business plan
Organization and Management
Includes
Company Ownership
Company Structure
Management Team
5th Part of the business plan
Service or Product line
Includes:
Describes benefits of your product
Product’s life cycle
Research and development
6th part of the business plan
Marketing and Sales
Market strategy for creating customers
Sales strategy for how you plan to sell your product
7th part of the business plan
Funding Request
Includes:
Funding Requirements
Strategic financial situational plans
Type of funding (Equity&Debt)
8th part of a business
Financial Data
Includes:
Historical Financial Data (last three months to five years inclduing income statement, balance sheet, and cash flow statement)
Prospective Financial Data (prospective 5 years income statement, balance sheet, cash flow sheet)
9th part of a business
Appendix
Includes:
As-needed information
Creditors want this
credit history
letters of reference
resumes
