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ENTREP 3RD QUARTER > Lesson 4: Developing a Business Plan > Flashcards

Lesson 4: Developing a Business Plan Flashcards

1
Q

What are the Factors to Consider of a New Entrepreneur

A
  1. Know your product or
    service
  2. Analyze the Market
    Potentials
  3. Determine the Marketing
    strategy
  4. Know the competitors
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2
Q

You must be confident that your product/service will sell in the market

A

Know your product/service

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3
Q

The wider the market potential, the
more chances of growth and success

A

Analyze the Market Potential

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4
Q

A unique product or service needs effective distribution strategy to get customer into the basket of demand potential

A

Determine the Marketing strategy

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5
Q

In launching a product with existing competitors, you must know their strengths and weaknesses.

A

Know the competitors

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6
Q

Defined as detailed and
integrated written document that
describes the various activities
involved in opening and operating
a new entrepreneurial venture.
- It is a formal statement of a set of
business goals.
- The roadmap of the new business
and of the entrepreneur.

A

Business Plan

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7
Q

Focus of a business plan

A
  • externally focused
  • internally focused
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8
Q

plans target goals that are
important to external stakeholders, particularly
financial stakeholders. They typically have detailed
information about the organization or team
attempting to reach the goals.

A

externally focused

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9
Q

business plan target
intermediate goals required to reach the external
goals. They may cover the development of a new
product, a new service, a new IT system, a
restructuring of finance, or the refurbishing of a
factory.

A

internally focused

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10
Q
  • major information source in making critical decision whether to go or not to go into the business.
  • forerunner of the business plan
  • primary objective is to determine whether the proposed business is feasible or not in all areas
A

feasibility study

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11
Q
  • conducted before decision to proceed
  • provides investigative function
A

Feasibility Study

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12
Q
  • prepared AFTER a decision to process
  • provides a PLANNING function
A

Business Plan

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13
Q

Types of Business plan

A
  • Dehydrated plan
  • Comprehensive plan
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14
Q

short form of a business plan that presents only the most important issues and projections

A

dehydrated plan

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15
Q

full business plan that provides an in-depth analysis of the critical factors that will determine a firm’s success or failure, along with all the underlying assumptions

A

Comprehensive Plan

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16
Q

Why make a business plan?

A

❑ Guide throughout the business process
❑ Convince prospective investors
❑ Convey capabilities and competencies of
owners/managers
❑ For navigational purposes (entrepreneur)
❑ Financing purposes (investors/financiers)
❑ Mechanics purposes (managers and staff)
❑ The business plan is valuable to the
entrepreneur, potential investors, or even new
personnel, who are trying to familiarize
themselves with the venture, its goal, and
objectives.
❑ It provides guidance to the entrepreneur in
organizing his/her planning activities.
❑ It serves as an important tool in helping to obtain
financing.

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17
Q

Who writes the business plan?

A
  • prepared by the entrepreneur
  • consult w/ other sources such as lawyer, accountants, marketing consultants, engineers
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18
Q

who reads the business plan?

A
  • employees
  • investors
  • bankers
  • venture capitalists
  • suppliers
  • customers
  • advisors
  • consultants
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19
Q

Simplified Business Plan

A

1)Introduction
2)Executive Summary
3)Marketing Plan
4)Operational Plan
5)Financial Plan
6)Appendix

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20
Q
  • In paragraph
    form stating
    salient details
    about the
    business
A

Introduction

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21
Q

Name of Business
Proponent(s)
(owners )
Location
Capital
Return on
Investment
Vision
Mission
Goals
Objectives

A

Executive Summary

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22
Q

Describes user benefits of the product/service and the type of market that exists
- 7PS in Marketing

A

Marketing Plan

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23
Q
  • Firm’s organizational structure and the backgrounds and qualifications of key personnel
  • 4 Ms of Production
A

Operational Plan

24
Q

Projects the company’s financial position based on well-substantiated assumptions and explains of how the figures have been determined

A

Financial Plan

25
Q

supplementary materials and attachments to expand the reader’s understanding of the plan

A

Appendix

26
Q

Presents the general perspective of the
business.
It includes 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

A

Introduction

27
Q
  1. Reflect business identity and image
  2. Promote 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
A

Proposed Name of the Business

28
Q

➢ It must state the correct
business address.
➢ Necessary to have an
email address to facilitate
electronic
communication.

A

Address of the Business

29
Q

➢ The name of the owner must be properly
stated.

A

Name of the owner or owners

30
Q

➢ A brief description of the business must include
information about the type of product or
service that the business intends to produce or
provide.
➢ It may include a brief information about the
ultimate mission, vision, and objectives of the
business.

A

Description of the business

31
Q

The basic entrepreneurial
consideration is to place the
proposed business in a
strategic location that will
assure competitive
advantage.

A

Location of the Business

32
Q

Factors to consider when deciding location of the proposed business

A
  1. Proximity to the target consumers
  2. Distance from the sources of raw materials,
    labor, utilities
  3. Availability and cost of transportation
  4. Peace and order situation
  5. Presence of direct competitors
  6. The geographic and climatic conditions
33
Q

➢ This section also presents the source
or sources of funds. The initial cost 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.

A

Funding requirement and source

34
Q
  • It point out the overall highlights
    of the business plan as well as a
    bird’s-eye view of its sections.
  • It must be written in simple
    language that can be easily
    understood and at the same time
    attract the attention and
    influence the decision of the
    reader.
A

Executive Summary

35
Q

Sections of Executive Summary

A
  1. Vision, mission, goals and objectives of
    the business
  2. Business model
  3. Business and product position
  4. Wealth improvement approaches
  5. Parties supporting the business
36
Q

╸ The business plan must depict the
fundamental characteristics,
nature, philosophical values,
identity, and image of the
business.
╸ The VMGO must be clearly stated
and easily understood.

A

Vision, mission, goals, and objectives

37
Q

ability to see something that
you dreamed

A

Vision

38
Q

A task that you need to do

A

Mission

39
Q

something to achieve

A

Goal

40
Q

Based on facts rather
than opinion

A

Objective

41
Q
  • Defines the perspective of the business in terms of its structure, production, operation
    and financial activities that will lead to the achievement of the VGMO.
  • There is no standard model that will exactly fit all types of business because they have different strengths and weaknesses,
    infrastructures, network, and value
    propositions.
A

Business model

42
Q

The business and product position
will help determine how the business defines its course and the process of accumulating wealth. It tells the size of the market and target market share of the business and product.

A

Business and product position

43
Q

This section of the executive summary describes the methodologies or approaches
that will be taken by the business in order to:
1. Maintain a competitive advantage
2. Position the business in the market
3. Improve the market share, and
4. Maximize the utilization of resources.

A

Wealth improvement approaches

44
Q

The last section of the executive summary is a
description of the parties that strongly support
the business. The parties that have a direct relationship with the business are as follows :
1. Consumers
2. Creditors
3. Suppliers
4. Employees and staff

A

Parties supporting the business

45
Q

Details how the proposed business will sell its product to
the target consumers.
 It may consist of some or all of the following important
sections: the 7P’s
1. Product
2. Place
3. Price
4. Promotion
5. People
6. Packaging
7. positioning

A

Marketing Plan

46
Q

Sections of Operational Plan

A
  1. Organizational Structure
  2. Production Plan
  3. Operation Plan
47
Q

Is a major section of the business
plan that outlines the various
activities, from the acquisition of
raw materials to the delivery of
the products to the target
consumers

A

Operational Plan

48
Q
  • The organization section sets up
    the hierarchy of the people
    involved in your business. It’s
    often set up in a chart form.
  • It includes form of the business
    organization, liability of the
    owners, roles and
    responsibilities, job description,
    salary requirements
A

Organizational Structure

49
Q
  • Focuses on ensuring a smooth
    flow of actual production work
    activities.
  • It includes production
    schedule, production process,
    equipment required, materials
    and sources of materials,
    estimated production cost.
A

Production Plan

50
Q

Areas that the operational plan commonly covers

A
  1. Evaluation of suppliers
  2. Purchase procedures
  3. Storage and Inventory control
  4. Sales Procedures
51
Q
  • The last major section of the
    business plan.
  • It accumulates and describes
    all the data expressed in
    monetary units from the
    other sections of the
    business plan
A

FInancial Plan

52
Q
  • Simply collates and describes the various sets of information derived from other sections of the business
    plan.
A

Financial Plan

53
Q

Financial plan is composed of?

A
  1. Start up cost
  2. Expenses
  3. Manufacturing cost
  4. Selling price
  5. Projected financial statement
  6. Projected schedule of division of profit or loss
54
Q

Supplementary
materials and
attachments to expand
the readers
understanding of the
business plan.

A

Appendix

55
Q

Appendix includes…

A
  1. Resume of the key investors, personnel and
    owners/manager
  2. Documentation
  3. Survey Questionnaire
  4. Prototyping result and documentation
  5. Photographs of product, facilities, and
    buildings
  6. Pertinent published research/research
    studies
  7. Signed contracts of sale

ENTREP 3RD QUARTER (9 decks)

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