Business Plan Overview

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Questions and Answers

Which section of the business plan contains the mission statement and core values?

  • Environmental and Industry Analysis
  • Executive Summary
  • Description of the Business (correct)
  • Marketing Plan

What is included in the Financial Plan section of the business plan?

  • Physical plant requirements
  • Potential internal risks
  • Pro forma balance sheet (correct)
  • Description of company operations

Which section addresses the strategies for preventing or minimizing risks?

  • Marketing Plan
  • Assessment Risk (correct)
  • Production Plan
  • Timetable/Milestones

What does the Operation Plan primarily describe?

<p>Flow of orders for goods and services (A)</p> Signup and view all the answers

Which section of the business plan would detail agreements with suppliers and distributors?

<p>Timetable/Milestones (A)</p> Signup and view all the answers

What is not included in the Appendices section of the business plan?

<p>Description of the company operations (D)</p> Signup and view all the answers

Which document is not typically found in the Environmental and Industry Analysis section?

<p>Mission statement (D)</p> Signup and view all the answers

Which section provides a summary of the entire business plan?

<p>Executive Summary (D)</p> Signup and view all the answers

What is included in the Marketing Plan section of the business plan?

<p>Sales forecasts (C)</p> Signup and view all the answers

Which component of the business plan discusses future capital equipment needs?

<p>Production Plan (C)</p> Signup and view all the answers

Flashcards

Introductory Page

A section that includes business name, owner info, nature of business, and financing needed.

Executive Summary

A concise summary highlighting the main points of the business plan.

Environmental and Industry Analysis

An analysis of the general and specific conditions affecting the business.

Description of the Business

Details about products/services, size, mission, location, and owner background.

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Production Plan

Overview of the manufacturing process, equipment, and capital needs.

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Marketing Plan

Strategies for pricing, distributing, promoting, and forecasting sales.

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Organizational Plan

Structure of ownership, management, and roles within the business.

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Financial Plan

A comprehensive evaluation of finances including projections and analysis.

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Assessment Risk

Identification of potential risks and strategies for managing them.

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Timetable/Milestones

Timeline for key business events and objectives to be achieved.

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Study Notes

Business Plan Sections

  • Introductory Page: Includes business name, address, owners/entrepreneurs details, nature of business, and financing statement

  • Executive Summary: Summarizes the business plan in 2-3 pages

  • Environmental and Industry Analysis: Describes the current general and specific environment, including competitive pressures

  • Description of the Business: Outlines products/services, business size, mission, core values, location, and major physical assets. Also includes background of the business owners

  • Production Plan: Details the manufacturing process, physical plant, machinery, equipment, raw material supplies, and future capital needs

  • Operation Plan: Describes the company's operations and flow of orders for goods/services

  • Marketing Plan: Includes pricing, distribution, promotion, and forecasts of sales

  • Organizational Plan: Presents the ownership structure, principal shareholders, organizational charts, management team's background, and roles/responsibilities

  • Financial Plan: Includes assumptions, pro forma balance sheet, income statement, cash flow projections, sources & use of funds, and breakeven analysis

  • Assessment Risk: Identifies potential internal and external risks, strategies to prevent or minimize them, and responses if they occur

  • Timetable/Milestones: Lists key steps in the business's timeline, like formal registration, product design, prototype completion, hiring, contracts with suppliers, production, and initial sales & deliveries

  • Appendices: Provides supporting data including market research, detailed financial projections, management resumes, and supplier price lists

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