Mana 3325 - Chapter 5
Benefits of Creating a Business Plan - correct answer ✔✔A written summary of
1)An entrepreneur's proposed business venture
2)The operational and financial details
3)The marketing opportunities and strategy
4)The manager's skills and abilities
5) A business plan is the best insurance against launching a business destined to fail or mismanaging a
potentially successful company
Essential functions of a business plan - correct answer ✔✔1) Guiding the company by charting its future
course and defining its strategy for following it
2) Attracting lenders and investors who will provide needed capital
A plan must pass three tests - correct answer ✔✔1) The Reality Test proving that - A market really does
exist for your product or service
- You can actually build or provide it for the cost estimates in the plan
2) Competitive test evaluates - A company's position relative to its competitors
- Management's ability to create a company that will gain an edge over its rivals
3) The value test proving that
- A venture offers investors or lenders an attractive rate of return or a high probability of repayment
Executive summary - correct answer ✔✔The executive summary is a written version of "the elevator
pitch"
A goof elevator pitch provides - correct answer ✔✔1) Context
2) Benefit
3) Target Customers
4) Point of differentiation
, 5) Clincher
Feature - correct answer ✔✔A feature is a descriptive fact about a product or service
Benefit - correct answer ✔✔A benefit is what the customer gains from the product or service feature
Key elements of a business plan - correct answer ✔✔1) Title page and table of contents
2) Executive Summary
3) Mission and vision statement
4) Description of a firm's product or service
5) Business and Industry Profile
6) Competitor Analysis
7) Marketing Strategy
8) Entrepreneurs' and Manager's Resume
9) Plan of operation
10) Pro Forma (Projected) financial statements
11) The loan or investment proposal
Tips for a good business plan - correct answer ✔✔1) First impressions count
2) Checks for errors
3) Make it visually appealing
4)Include a table of contents with page numbers
5) Make it interesting
6) Show that it will make money
7 ) Use spreadsheets for realistic financial forecasts
8) Include cash flow projections
9) Keep the plan crisp
10) Tell the truth
Benefits of Creating a Business Plan - correct answer ✔✔A written summary of
1)An entrepreneur's proposed business venture
2)The operational and financial details
3)The marketing opportunities and strategy
4)The manager's skills and abilities
5) A business plan is the best insurance against launching a business destined to fail or mismanaging a
potentially successful company
Essential functions of a business plan - correct answer ✔✔1) Guiding the company by charting its future
course and defining its strategy for following it
2) Attracting lenders and investors who will provide needed capital
A plan must pass three tests - correct answer ✔✔1) The Reality Test proving that - A market really does
exist for your product or service
- You can actually build or provide it for the cost estimates in the plan
2) Competitive test evaluates - A company's position relative to its competitors
- Management's ability to create a company that will gain an edge over its rivals
3) The value test proving that
- A venture offers investors or lenders an attractive rate of return or a high probability of repayment
Executive summary - correct answer ✔✔The executive summary is a written version of "the elevator
pitch"
A goof elevator pitch provides - correct answer ✔✔1) Context
2) Benefit
3) Target Customers
4) Point of differentiation
, 5) Clincher
Feature - correct answer ✔✔A feature is a descriptive fact about a product or service
Benefit - correct answer ✔✔A benefit is what the customer gains from the product or service feature
Key elements of a business plan - correct answer ✔✔1) Title page and table of contents
2) Executive Summary
3) Mission and vision statement
4) Description of a firm's product or service
5) Business and Industry Profile
6) Competitor Analysis
7) Marketing Strategy
8) Entrepreneurs' and Manager's Resume
9) Plan of operation
10) Pro Forma (Projected) financial statements
11) The loan or investment proposal
Tips for a good business plan - correct answer ✔✔1) First impressions count
2) Checks for errors
3) Make it visually appealing
4)Include a table of contents with page numbers
5) Make it interesting
6) Show that it will make money
7 ) Use spreadsheets for realistic financial forecasts
8) Include cash flow projections
9) Keep the plan crisp
10) Tell the truth
