Podcast
Questions and Answers
What does the executive summary contain?
What does the executive summary contain?
- Financial information
- Operational details
- Marketing strategies
- A brief overview of the business plan (correct)
Which of the following is NOT a micro-environmental factor?
Which of the following is NOT a micro-environmental factor?
- Technological advancements (correct)
- Unexpected opportunities from customers
- Competitors
- Consumer preferences
The ______ plan outlines the process of turning inputs into outputs.
The ______ plan outlines the process of turning inputs into outputs.
Operational or Production
Which of the following is NOT considered a part of the 4M's of Operation?
Which of the following is NOT considered a part of the 4M's of Operation?
What is outsourcing?
What is outsourcing?
According to Don Deebalak's article, 'Developing a Great Business Model', what do 'Green Lights' represent in the business model?
According to Don Deebalak's article, 'Developing a Great Business Model', what do 'Green Lights' represent in the business model?
Which of the following is NOT a type of sales presentation?
Which of the following is NOT a type of sales presentation?
Keeping accurate and detailed business records is crucial for entrepreneurs to make informed decisions and manage their finances effectively.
Keeping accurate and detailed business records is crucial for entrepreneurs to make informed decisions and manage their finances effectively.
Which of these is NOT a major type of account in accounting?
Which of these is NOT a major type of account in accounting?
Current assets are expected to be converted into cash within one year or less.
Current assets are expected to be converted into cash within one year or less.
The ______ is a financial statement that shows the assets, liabilities, and equity of a company at a specific point in time.
The ______ is a financial statement that shows the assets, liabilities, and equity of a company at a specific point in time.
Which of these is NOT a source of owner's equity or capital?
Which of these is NOT a source of owner's equity or capital?
Revenue is the increase in resources due to the performance of a service or the sale of goods.
Revenue is the increase in resources due to the performance of a service or the sale of goods.
What is the difference between selling price and cost?
What is the difference between selling price and cost?
What are the two main types of expenses in business?
What are the two main types of expenses in business?
What does 'Cost of Sales' or 'Cost of Goods Sold' represent?
What does 'Cost of Sales' or 'Cost of Goods Sold' represent?
What financial statement summarizes the cash activities of a business by classifying cash inflows and outflows?
What financial statement summarizes the cash activities of a business by classifying cash inflows and outflows?
Flashcards
Executive Summary
Executive Summary
A summary of a business plan, written last but viewed first.
Vision
Vision
A company's long-term aspirations and desired future.
Mission
Mission
A company's core purpose and how it plans to achieve its mission.
Objectives
Objectives
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Value Proposition
Value Proposition
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Macroenvironment
Macroenvironment
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Microenvironment
Microenvironment
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Marketing Plan
Marketing Plan
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Operational Plan
Operational Plan
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Input (Manufacturing)
Input (Manufacturing)
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Process (Manufacturing)
Process (Manufacturing)
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Output (Manufacturing)
Output (Manufacturing)
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Manpower
Manpower
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Machine
Machine
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Materials
Materials
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Methods
Methods
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Financial Plan
Financial Plan
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Revenue Forecast
Revenue Forecast
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High Value Customer
High Value Customer
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Cold Calls
Cold Calls
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Consultative Selling
Consultative Selling
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Direct Selling
Direct Selling
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Accounting
Accounting
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Assets
Assets
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Liabilities
Liabilities
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Owner's Equity
Owner's Equity
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Revenue
Revenue
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Study Notes
Business Plan Components
- Executive Summary: Prepared last, but reviewed first
- Study Background: Includes business logo, vision, mission, objectives, and value proposition
- Macro/Microenvironmental Analysis: Includes socio-cultural, technological, economic, ecological, political, legal, ethical, and demographic factors; consumer preferences, competitors, and marketplace issues
- Marketing Plan: Aims to inform, persuade, and remind customers to buy a product or service
- Operational/Production Plan: Outlines the conversion process from input to output in manufacturing, including input, process, and output
- Manufacturing Elements: Manpower, machines, and materials, with three material requisitioning options
- Financial Plan: Details starting capital and revenue forecasts
Business Model Development
- Green Lights: Positive indicators for profitable business plans, including high-value customer identification (easy to find, willing to pay, easily persuaded, and substantial revenue generators), service/product value propositions, and reasonable profit offerings
- Red Lights: Negative signals, such as high customer satisfaction costs, market leadership difficulties, and low/slow ROI
- Selling Strategies: Includes cold calls, consultative selling, direct selling, and persuasive selling
- Sales Presentation Types: Stimulus response (compelling proposition), formula selling (standardized approach), canned presentation (memorized), and need presentation (customer needs assessment)
Accounting Principles and Types of Accounts
- Importance of accurate record-keeping for entrepreneurial decision-making
- Accounting process including analyzing, classifying, recording, summarizing, verifying, and interpreting financial information
- Major Account Types:
- Assets: Short-term economic resources (e.g., cash, marketable securities, and receivables) and long-term assets, including investments, property, plant, and equipment, and intangible assets
- Liabilities: Obligations owed to others (short-term and long-term); examples include accounts payable, mortgage payable, and bonds payable
- Owner's Equity/Capital: Residual interest in business assets after deducting liabilities
- Revenue/Income: Increase in resources from service or sale of goods (e.g., sales/operating revenues, service revenues, professional fees)
- Expenses: Decreases in resources from business operations (e.g., salaries, advertising, supplies, rent, insurance, utilities, taxes/licenses, freight)
Financial Statements
- Cost of Sales: Direct costs of manufacturing or purchasing goods sold to customers
- Financial Statements Used: Statement of Financial Position (Balance Sheet), Statement of Comprehensive Income (Income Statement), Statement of Changes in Owner's Equity, Statement of Cash Flows
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