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Questions and Answers
What is the primary purpose of a business plan?
What is the second most important part of a business plan?
What is the objective of a business plan?
What is the last part of a typical business plan?
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Why do investors read a business plan?
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How many parts does a typical business plan have?
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What is one of the primary purposes of a business plan?
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What should be included in the cover sheet of a business plan?
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What is the purpose of the executive summary in a business plan?
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What should be included in the operations section of a business plan?
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What should be the tone of a business plan?
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What is the purpose of stating the required capital in a business plan?
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Study Notes
Writing a Business Plan
- A business plan tells a story, starting with the value proposition, how it will be implemented, and why it's needed in the market.
- It should include an introduction, a description of the market, the resources needed to service the market, and the eventual goal.
Content of a Business Plan
- A business plan is not just for investors, but for the entrepreneur to refine and clarify their vision.
- Investors read the plan to gauge the level of sincerity and seriousness of the entrepreneur and their team.
Key Parts of a Business Plan
- The plan should include:
- The solution itself
- A business model
- Market analysis
- Financials that align with the rest of the plan
Salient Points of a Business Plan
- Objectives of the plan should be:
- To obtain funding
- To provide a plan for early corporate development
- To guide the organization towards meeting its objectives
- To explain how the company's business will evolve
- The plan should be:
- Easy to read
- Market-driven
- Descriptive of the competition
- Detailing the marketing and distribution plan
- Highlighting the company's uniqueness
- Emphasizing the management's strengths
- Showcasing attractive, realistic projections
Elements of a Business Plan
Cover Sheet
- Includes contact details, disclaimers, and date of representation
- Clearly states confidentiality and proprietary rights
- Disallows distribution of information without prior written permission
Executive Summary
- Includes:
- Introduction (elevator pitch, management team, opportunity, and objective)
- Mission statement (larger plan and vision)
- Key considerations (resources, challenges, and market dynamics)
- Objectives (business objectives)
- Expected accomplishments (achievements in three years)
- Required capital (amount needed for product development and launch)
Operations
- Includes information on:
- Management team (names, roles, responsibilities, and experience)
- Company ownership (breakdown of shares held by each party)
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Description
This quiz is about creating a business plan, from introducing the value proposition to reaching an eventual goal, including market analysis and resource allocation.
