Entrep Flashcards
What is the primary purpose of writing a business plan?
To reflect how an entrepreneur visualizes his goals and the way they should be accomplished.
What are the two important reasons for writing a business plan?
- Internal reason: systematic thinking about business aspects
- External reason: appealing qualities to consumers
True or False: Writing a business plan can help analyze the business’s overall performance.
True
How does a business plan contribute to a company’s longevity?
It provides a direction to follow, leading to coordinated actions that promote market and profit gains.
What does a business plan help an entrepreneur understand more effectively?
His finances, including forecasting sales and expenses.
Fill in the blank: A business plan must be _______.
[realistic]
What is one of the four important principles of a business plan?
It must be based on felt needs.
What type of business plan is typically 10 to 15 pages long?
Summary business plan
What is the purpose of a full business plan?
To provide detailed explanations for investors, typically 25 to 35 pages long.
What is an operational business plan used for?
For internal purposes in existing businesses, usually 40 to 100 pages long.
What is included in the cover sheet of a business plan?
- Name of the company
- Address
- Contact details
- Month and year established
- Prepared by and number of copies
What does the executive summary section of a business plan explain?
The purpose of the business, management, strengths, objectives, and financing details.
What is the mission of the company in the organizational plan?
It explains both short- and long-term goals.
What does SWOT analysis stand for?
- Strengths
- Weaknesses
- Opportunities
- Threats
What information is provided in the marketing plan section of a business plan?
Marketing strategies, market analysis, advertising campaigns, and customer service details.
What is the purpose of the financial documents section in a business plan?
To exemplify the quantitative details of marketing plans and financial projections.
What is a break-even analysis?
The matching of expenses to sales and service volume.
What should the supporting documents section of a business plan include?
- Personal resumes
- Owner’s financial statements
- Credit reports
- Copies of leases
- Letters of references
- Contracts
- Other legal documents
- Miscellaneous documents
True or False: A business plan is only a paper presentation.
False
Fill in the blank: A business plan must start with _______.
[simple projects]
What does the location component of the organizational plan describe?
The desired, planned, or current location along with costings and legal agreements.
What is the significance of understanding competitors in a business plan?
It helps determine what makes a business unique and how to improve offerings.
