Ch. 35 The 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.

How a company will make customers aware of its products/services

• Marketing Plan
• Industry Overview
• Product and Service Plan
• Growth Plan

Who will run the company as well as management’s philosophy

• Organizational Plan
• Operational Plan
• Executive Summary
• Company Description

Research of the potential customer’s profile

• Market Analysis
• Marketing Plan
• Mission Statement
• Growth Plan

A plan presenting financial forecasts for the business

• Loan Proposal
• Financial Plan
• Business Loan Plan
• Investor Plan

The specific aspirations of a company, the major goals it will try to reach.

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

Refers to what you are selling, including all of the features, advantages and benefits that your customers can get.

• Price

• Packaging

• Promotion

• Product

It shows and defines the hierarchy of the different positions in the organization.

• Roles and Responsibilities

• Form of Business Organization

• Organizational Structure

• Salary Requirements

It details how the proposed business will sell its product to the target consumer.

• Marketing Plan

• Financial Plan

• Organizational Plan

• Introduction