Understanding a Business Plan

What is a business plan described as?

• A type of road map

• A financial statement

• A marketing strategy

• A legal document.

A business plan should be developed by anyone wanting to start a business. It is a written proposal describing a prospective business to potential investors and _______.

• customers

• lenders

• employees

• partners

Which of the following is a key action a business plan should accomplish?

• Convince investors the business will be profitable

• Identify unnecessary legal procedures

• Establish yearly steps to operate the business

• Ignore month-to-month operations.

A business plan should _______ necessary legal procedures for business start-up.

• ignore

• identify

• complicate

• simplify

What is included in the 'Business Description and Analysis' section of a business plan?

• Business type

• Business philosophy

• Product description

• All of the above.

Fill in the blank: Your business philosophy tells others how you think the business should be operated and your understanding of your business’s role in the ________.

• marketplace

• office

• community

• environment

What is included in the trading area analysis of a business plan?

• Geographic, economic, and demographic data

• Market trends

• Financial projections

• Product design

In a business plan, the analysis of potential location is completed after ______.

• Financial planning

• Trading area and market segment analysis

• Product development

• Marketing strategy

What are the three main components of a Proposed Organization in a business plan?

• A) Type of ownership, business establishment steps, personnel needs

• B) Marketing strategies, financial planning, risk management

• C) Product design, supply chain, customer service

• D) Market analysis, competitive strategy, sales forecast.

In a business plan, the Proposed Product section should detail the type of product(s) you plan to offer, who your suppliers will be, and your ______ policies.

• marketing

• inventory

• financial

• customer service