Chapter 5 Entrepreneurship
Section 5.2 The Business Plan
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Read to Learn The Main Idea Describe how to prepare for your own business. Once an entrepreneur discovers a good business opportunity, the next step is to do market Discuss the parts of a business plan. research. Market research helps to determine whether there will be a demand for a new product or service. It can also uncover issues to address in a business plan.
Key Concepts Key Term Initial Steps in Setting up a Business Plan a written description of a new business business venture that describes all plan Parts of a Business Plan aspects of the business
executive a brief account of the key points summary contained in a business plan
1 Initial Steps in Setting up a Business
Key Term Doing market establishes the scope and purpose business plan vision research and writing of a company and reflects its values a written description of a statement and beliefs a business plan are new business venture that the first steps in describes all aspects of the business expresses the specific aspiration of mission setting up a business. a company, the major goals it will statement try to reach
Graphic Organizer Parts of a Business Plan Checklist for Starting a Venture A business plan must be well organized and What will I produce? easy to read. Who are my main competitors? Why is my product or service needed? There are 15 essential parts of a business How much will my product or service cost to produce? How many people will I need to run the business? plan. What physical facilities will I need? What licenses, permits, or other legal documents do I need? How much money will I need to get started?
Executive Summary Management Team Plan
The executive The management team plan presents your executive summary summary should be a brief account of the key qualifications and those of any partners you short and contain points contained in a might have. the most important business plan. information from You should discuss how you will fill gaps in each section of the expertise. business plan.
2 Company Description Product and Service Plan
The description of the firm provides an outline The product and service plan describes the of the business and helps investors understand product or service you want to offer along with the size, scope, and type of business you plan possible spin-offs. to start.
Vision and Mission Statements Mission Statements The vision vision statement statement and the establishes the scope and mission statement purpose of a company and A mission statement should clearly express a reflects its values and beliefs company’s main goals. Find an example of a sections state the mission statement good mission statement on the Internet. guiding principles of expresses the specific your business. aspirations of a company and the goals it will try to reach
Industry Overview Market Analysis
The industry overview presents your research In the market analysis section, you should of the industry. include geographic, economic, and demographic data about the target market and Discuss trends and growth within the industry. business location.
3 Competitive Analysis Marketing Plan Parts of the Marketing Plan
How does your business have an advantage A marketing plan Market Pricing over your competition? discusses how a niche company makes its Gather information on your competitors by Company Marketing customers aware of its image tactics talking to their customers, vendors, suppliers, products or services. and employees. Media Marketing plan budget
Operational Plan Organizational Plan
The operational plan includes the business The organizational plan describes the people processes that result in production and who will run the firm as well as management’s delivery of the product or service. philosophy.
Discuss the form of the organization, such as sole proprietorship.
Financial Plan Growth Plan
The financial plan presents forecasts for the The growth plan looks at how the business business. will expand in the future.
The plan provides proof that the new Investors and lenders like to know that a business will be financially healthy. business plans to grow and deal with growth.
4 Contingency Plan Cover Page, Title Page, Table of Contents, and Supporting Documents The contingency plan looks at likely risks to The cover page should include: the business and ways to minimize those Company name risks. Address Phone number Web site E-mail addresses Company logo
Cover Page, Title Page, Table of Contents, Cover Page, Title Page, Table of Contents, and Supporting Documents and Supporting Documents The title page should include: The table of contents details the components Company name of the business plan. Names, titles, and addresses of the owners The date the plan was submitted The name of the preparer
Cover Page, Title Page, Table of Contents, Figure 5.2 and Supporting Documents Parts of a Supporting documents include exhibits and Business Plan other information relevant to the business.
5 1. Why is a business plan important? 2. Why should entrepreneurs carefully study their competitors before starting a business? It gives important information before embarking upon the venture and helps sell lenders and To know they are competing against, allowing investors on the plan. them to figure out how they will attract customers.
End of Chapter 5 Entrepreneurship
Section 5.2 3. Why is a growth plan important in a business plan? The Business Plan
It shows the business can grow beyond the initial stage of development.
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