Lenders require a business plan before they will consider financing a business.
Focus on the customer and the market need, NOT on the technology Acknowledge your competition honestly Include elements of the strategic plan Ask for ongoing feedback from an experienced entrepreneur Discuss current capital structure Make sure the plan flows narratively from section to section Keep the business plan as succinct as possible Your business plan should have the following sections: A business plan is important for all of the following reasons except a it helps you communicate your ideas to family and relationship benefits of travel experiences a literature review, b it helps you decide what to sell, c it can help you secure financing for your business, d it makes you think about all aspects of management team and organization business plan business.
Prospective lenders want to know what you expect to earn in revenues and to pay in expenses. Only corporations need to include a form of ownership section in a business plan.
.6 Business Planning - Business Studies
If the business is located too far from the target customer or if parking is not available, people may not go there because they consider it inconvenient. The introduction section of a business plan contains all of the following except a a description of the business and its goals, b the legal structure of the business, c an identification of risks, d the advantages your business has over your competitors.
A local Chamber of Commerce can provide information on trends affecting local 6. Entrepreneurs should avoid seeking advice from bankers or accountants because doing so will make them appear inexperienced and unqualified to run a business.
The collected samples were taken in plastic bags and were air-dried.
An executive summary a should be written before the business plan is completed, b includes supporting documents that back up statements made in the body of the report, c state the amount you want to borrow, d must never be longer than two paragraphs. Your business plan must a clearly define your market, b never overlook the competition, c be consistent, d all of these. The industry section should include the growth potential and economic trends of the industry; technology that may affect the industry; forecasts for industry growth; and external factors that can affect the business, such as high competition or lack of suppliers.
Which of the following is not an element of the financial management section of your plan? Long-term sales projections are a for two to four years after start up, b for five years in the future, c for ten years in the future, d not included in a business plan.
What information should be included about the industry you will operate in? Prospective lenders know that every business faces risks and will be reassured to see that you have considered these risks and have devised plans to deal with them.
Online business resources a should not be used in a business plan, b are not as reliable as print resources, c can management team and organization business plan found via search engines, d are not available from the SBA.
Why is it important?
Why a Business Plan Is Important. True or False. 1. A business plan provides financial information that shows how your business will earn a profit. T. 2. a business plan provides financial information that shows how your business will earn a profit. Click card to see definition. Tap card to see definition. true.
The only person who should read a business plan is the owner and potential investors. What information should be included about your market? How much money is necessary? List these elements, describe what is included in each, and explain why the information is necessary.
F Multiple Choice 1. A financial statement based on projected revenues is called an informal financial statement. The retired executives at SCORE a provide advice for a small fee, b hold inexpensive workshops, c represent all areas of business, d have offices at the SBA.
Information about necessary equipment for your business is included in the a financial management section, b concluding statement, c marketing section, d operations section.
Writing a business plan can help you identify problems you might encounter in the future. A business plan will not help you think about all the aspects of your business.
Before they will consider financing a business, lenders require a an organizational chart that lists all of your employees, b a business plan, c the history and background of your product, d all of these. How will the company develop its technology into products?
CHAPTER 3 STARTING A NEW BUSINESS TRUE/FALSE Innovation is a necessary part of entrepreneurship. Answer: F The history of the facsimile. A business plan describes the backgrounds and experience of the Importance. of. a. Business. Plan. Every new business must have a business plan .