Unit 3 Developing a Business Plan – Chapter 35
Key Terms and Concepts
Why is it important to develop a business plan? it allows you to communicate your vision to others and persuade them to help you meet your goals.Identify the four major parts of a business plan. executive summary, marketing plan, key management bios, financial plan
What is a trading area? area which a community generates most of its customers.
What are the major parts in the organizational section and the marketing section of the business plan? executive summary, products/services, company description, market analysis, organization and managment team, strategy and implemention
How is an organization chart used in a business? to provide both employees and individuals outside the organization with a ”snapshot” picture of its reporting relationships, divisions of work, and levels of management.
What are the six Cs of credit? character, capacity, capital, conditions, collaterral, cash flow
Why should aspiring entrepreneurs conduct a self-analysis as part of a business plan? to ensure they are in line with what they’re supposed to be doing.
Why is it important to know the disposable income of potential customers? because it’s the foundation of all economic information.
What sources can an entrepreneur use to research the competition? television, internet, blogs, ads
What sources can an entrepreneur use to research the company? internet, blogs, source pages
Why should personnel needs be3 identified in a business plan? To better understand the business
What is the best way to promote a new business? ads, televison, radio, billboards, magazines, newspapers
What are debt capital and equity capital? The equity of any type of asset (whether intellectual or physical) is the value someone is willing to pay for it, minus all its liabilities. That could mean the value of an entity today measured in time and money invested, versus the value in the future measured by comparable growth….