Entrep Chap 4 Writing a Business Plan Flashcards
What is the purpose of a business plan?
A business plan describes what a new business plans to accomplish.
What are the two primary reasons for writing a business plan?
To secure funding and to provide a roadmap for the business.
Who reads a business plan and what are they looking for?
Employees and investors; employees look for operational guidance, while investors assess the viability of funding.
What is the difference between a summary business plan, a full business plan, and an operational business plan?
A summary business plan provides a brief overview, a full business plan offers comprehensive details, and an operational business plan focuses on day-to-day operations.
Why is the executive summary considered the most important section of a business plan?
It provides a concise overview and is often the first section read by investors.
What is a milestone in the context of a business plan?
A milestone is a significant event or achievement in the business’s progress.
Why is it important to include separate sections on a firm’s industry and its target market in a business plan?
To provide context and demonstrate understanding of market dynamics.
What is included in the ‘Management Team and Company Structure’ section of a business plan?
Management team, board of directors, board of advisers, and company structure.
What is the purpose of a ‘sources and uses of funds’ statement?
To outline how funds will be acquired and utilized.
What should the content of a business plan include?
Clear and concise information on all important aspects of the proposed venture.
What is the typical length of a business plan?
25 to 35 pages.
What are the three types of business plans?
- Summary business plan
- Full business plan
- Operational business plan
What does the executive summary provide?
A short overview of the entire business plan.
What key items should be included in the Company Description section?
- Company description
- Company history
- Mission statement
- Products and services
- Current status
- Legal status and ownership
- Key partnerships
What is the focus of the Industry Analysis section?
Describing the industry in terms of size, growth rate, and sales projections.
What items should be included in the Market Analysis section?
- Market segmentation and target market selection
- Buyer behavior
- Competitor analysis
What is the primary focus of the Marketing Plan section?
How the business will market and sell its product or service.
What should the Operations Plan outline?
How the business will be run and how products or services will be produced.
What key items should be included in the Product (or Service) Design and Development Plan section?
- Development status and tasks
- Challenges and risks
- Intellectual property
What does the Financial Projections section present?
The firm’s pro forma (or projected) financial projections.
What are the twelve PowerPoint slides to include in an investor presentation?
- Title Slide
- Problem
- Solution
- Opportunity and target market
- Technology
- Competition
- Marketing and sales
- Management team
- Financial projections
- Current status
- Financing sought
- Summary
True or False: The first rule in making an oral presentation is to follow directions.
True
Fill in the blank: A business plan should follow a ______ structure.
[conventional]
What is the significance of the Management Team section in a business plan?
Investors assess the strength of the team starting the firm.
What should be balanced in the Operations Plan section?
Describing operations adequately without providing too much detail.
What is a key insight regarding product development in the Product Design section?
Many startups fail because their product development efforts stall.
