Components of a business plan

Question 1

Can take on two forms
-Short or abbreviated
-Comprehensive or in depth

Answer 1

Formatting

Question 2

What should be found in the contents?

Answer 2

-Executive summary
-Cover page
-Revenue model
-Revenue stream
-Cost structures

Question 3

What is in a cover page

Answer 3

-Company contact info
-Company logo
-Slogan

Question 4

What is in an executive summary

Answer 4

-Overview of the business (Industry overview, management team, explain business concept, explain business concept, target market)
-Opportunity (economics, competitive advantage, amount of money, purpose of financing)
-Company description (where is it located, objectives, nature of the business, achievements, products and services)

Question 5

What are the four revenue models

Answer 5

1. Volume/ unit based - fixed price per unit
2. Subscriptions/ membership - fixed amount at intervals
3. Advertising based - cost per impression, click, or purchase
4. Licensing model - one-time licensing fee for use

Question 6

What are the four kinds of revenue stream?

Answer 6

1. Single streams - inflow from a single product or service
2. Multiple streams - inflow from multiple products and services
3. Interdependent streams - sell one products or service so that another can be provided (crematory manufacturer, reorder supplies and maintenance)
4. Loss leader - one stream operates at a loss to produce other profitable streams (MATW alkaline hydrolysis)

Question 7

What are the three types of cost structures?

Answer 7

1. Fixed cost - costs that do not vary with volume provided
2. Variable cost - costs that vary and are proportional to sales/ service volume
3. Semi-variable cost - hybrid elements of both fixed and variable costs

Question 8

What should be included in the operations section of the business plan?

Answer 8

-Market analysis
-Market plan
-Management team
-Operations plan
-Financial plan

Question 9

-Highlights the industry as a whole
-Identifies the market (group of potential customers)
-Identifies the target market (group that are targeted and likely to become customers)
-Analyzes the competition

Answer 9

Market analysis

Question 10

What is the process of a marketing plan?

Answer 10

-Product
-Price
-Place
-Promotion

Question 11

What makes up a management team?

Answer 11

-Roles
-Positions
-Structure

Question 12

How the product or service will be produced or provided
-Facilities, labor, material, processes, ect
-Begin to flirt with the growth and development plan

Answer 12

Operations plan

Question 13

Part of the operations that:
-Financially separates the owner and business
-Creates a pattern for constructing a plan. Past data to current data to pro forma projections
-Budgets using initial budges
-Uses previous financial budgets to create projections and pro formas

Answer 13

The financial plan

Question 14

Projected financial statements
-Pervious data and future assumptions (trends and future business outlook are applied to forecast into the future)
-Key calculation metrics (IS % of revenue, BS % of total assets)

Answer 14

Pro forma

Question 15

What is in the strategy of a business plan?

Answer 15

-Growth plan: identifies future goals
-Development plan: how the goals will be achieved