Introduction to Business Plan Preparation

Question 1

prepared using a scientific approach in determining possible business situations considering the different perspective of people who are interested in the business

Answer 1

business plan

Question 2

actually the road map of the new business it is the road map of the entrepreneur it is the only single written document that must be prepared before opening a new business or expanding an existing business. It provides a clear direction to any uncertain business endeavor.

Answer 2

business plan

Question 3

as a detailed integrated written document that describes the various activities involved in opening and operating a new entrepreneurial venture. In case the business project is relatively large in terms of financing or funding requirements, the entrepreneur usually seeks the assistance of consultants.

Answer 3

business plan

Question 4

presents the general perspective of
the business. It includes, among others, the following
sections:

1. Proposed name of the business
2. Address of the business
3. Name of the owner or owners
4. Description of the business
5. Location of the business
6. Funding requirement and source

Answer 4

1. Introduction

Question 5

Note:
In case the consulting team prepares the business plan for prospective owners or investors, the section ________________ is added as the last section.

Answer 5

Statement of Confidentiality

Question 6

1. reflect the business identify and images.
2. promotes the philosophical values and culture that the business values the most.
3. profess the brand identity of the product, and
4. attract or influence the target consumers.

Answer 6

Proposed Name of the Business

Question 7

It is important that the _______ of the business is correctly written because all business correspondence is mailed to the _____________. Raw materials and other manufacturing supplies are shipped by the seller to the designated _______________

Answer 7

• Address of the Business

Question 8

must be properly stated. In a sole proprietorship, there is only one owner. In case the venture is a partnership, the names of the partners, including the extent of their liabilities, must be indicated.
For business ventures that will operate as a corporate entity, the names, nationalities, and addresses of the incorporators must be given. Incorporators are persons who originally formed the corporation.

Answer 8

• Name of the Owner

Question 9

must include information about the type of product or service that the business intends to produce or provide. It may include brief information about the ultimate mission, vision, and objectives of the business. The other Product or services that the business plans to produce or provide must also be mentioned in the description of the business.

Answer 9

• Description of the Business

Question 10

There are no rigid rules in the selection of the ________________ since several variables affect the selection of the business location. The basic entrepreneurial
consideration is to place the proposed business in a strategic _____________ that will assure competitive advantage.

Answer 10

• Location of the Business

Question 11

The following factors should be considered when deciding on the location of the proposed business:

Answer 11

1. Proximity to the target consumers
2. Distance from the sources of raw materials labor and utilities
3. Availability and cost of transportation
4. Peace and order situation
5. Presence of direct competitors
6. The geographic and climatic conditions

Question 12

The estimated total initial costs of the business venture must be indicated. It should include the projected breakdown or allocation of the total costs e.g., how much will be for building, equipment, supplies, and working capital. This section also presents the source of funds. The initial costs of the investment may be provided solely by the owner or owners or partly by the owner and creditors. The estimated period to settle the funding source provided by creditors must also be mentioned.

Answer 12

• Funding Requirement and Source

Question 13

is a concise overview of your business plan, typically one to two pages long. It’s the first thing potential investors, lenders or partners will read, so it needs to be compelling and informative.

Answer 13

2. Executive summary

Question 14

At the very outset, the business plan must depict the fundamental characteristics, nature, philosophical values, identity, and images of the business. These important concerns are embodied in the VMGO of the business.