Chapter 3 - Develop a Business Plan

What is a business plan?

• Written document that only outlines the business practices of the new business.

• Written document that describes the financial aspects of the business.

• Written document that only describes the ownership of the business.

• Written document that describes all the steps necessary for opening and operating a successful business.

Why do you need a business plan?

• To explain your idea

• the ability to get financing.

• it's a road map that sets objectives and goals for the business.

• To help reduce the risk of business failure.

• All of the above.

Complete the sentence: A business plan...

• is useful once your business is operational but not much help during the startup phase

• is not usually needed once the business is up and running

• can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.

A potential business owner’s qualifications and those of any partners

• Company Description

• Management Team

• Growth Plan

• Executive Summary

A brief account of the key points contained in a business plan

• Executive Summary
• Company Description
• Mission Statement
• Vision Statement

Describing how you came up with the idea for your business can help others understand how your business will operate.

• True

• False

Writing a business plan can force entrepreneurs to think about their goals.

• True

• False

A handwritten business plan is acceptable if it is neat, well organized, and inviting to read.

• False

• True

The marketing section of your business plan should describe the location of your business.

• True

• False

Your business plan should describe the location of your business because

• location is often a critical factor in a business's success

• all of these

• every industry has an ideal type of location

• different forms of ownership have different types of locations