Entrepreneurship - Ch. 3

A written document that describes all the steps necessary for opening and operating a successful business.

• cover letter

• executive summary

• business plan

• statement of purpose

A financial statement based on projected revenues and expenses.

• cover letter

• pro forma financial statement

• executive summary

• trade association

a letter that introduces your business plan to a potential investor; it should briefly describe your business and its potential for success as well as identify how much capital you are seeking

• cover letter

• table of contents

• introduction

• trade association

a short restatement of the report (1 to 2 pages) that investors can read prior to getting into the detail of the main body of the business plan

• statement of purpose

• table of contents

• executive summary

• trade association

A brief explanation of why you are asking for a loan and what you plan to do with the money.

• statement of purpose

• table of contents

• executive summary

• cover letter

An independent agency of the federal government that was created to help Americans start, build, and grow businesses; CAN PROVIDE FINANCIAL AID, counsel, and assistance to protect the interests of small business concerns

• SBA

• SBDC

• SCORE

• all of these

organizations made up of professionals in a specific industry

• SCORE

• trade associations

• SBDC

• SBA

made up of more than 10,500 retired executives who VOLUNTEER their time to provide entrepreneurs with real-world advice and know-how; provide free confidential advice

• SCORE

• trade associations

• SBDC

• SBA

A business plan is NOT intended for

• your competition

• potential investors

• your bank

• any of these

Purposes of a business plan include which of the following?

• it explains your idea for a product or service

• it sets specific objectives and describes how they will be achieved

• it describes the backgrounds and experiences of the people who will run the business

• all of these