Chapter 7 ELE
What is the business plan?
a Written document describing relevant internal and external elements AND
strategies for starting a new venture
What does the business plan do?
it integrates functional plans and addresses short and long-term decision
making for the first 3 years of operation
a business plan is prepared by______
entrepreneurs in consultation with other
Consultants, lawyers, accountants, etc.
A business plan requires _______
objective assessments of individual skills
The Scope is determined by ______
who is expected to read the plan
A plan should consider the:
1. Entrepreneur's perspective
2. Marketing perspective
3. Investor's perspective
Depth and detail of the business plan depends on:
- Size and scope of the proposed new venture
- Size of the market
- Competition
, - Potential growth
The business plan is valuable because it:
a. Helps determine the viability of the venture in a designated market
b. Guides the entrepreneur in organizing the planning activities
c. Serves as an important tool in helping to obtain financing
The business plan must reflect:
1. Strengths of the management and personnel
2. product/service
3. Available resources
Lenders (banks) are Interested on ______
the ventures ability to pay back the debt
Lenders (banks) focus on the _______
four C's of credit- Character, cash flow, collateral, and equity contribution
Banks are interested in ________
analysis of the business opportunity and risks
Investors (venture capitalists and angels) _______
1. Emphasize on the entrepreneur's character
2. Conduct background checks
3. Demand high rates of return
4. Focus on market and financial projections
What is the business plan?
a Written document describing relevant internal and external elements AND
strategies for starting a new venture
What does the business plan do?
it integrates functional plans and addresses short and long-term decision
making for the first 3 years of operation
a business plan is prepared by______
entrepreneurs in consultation with other
Consultants, lawyers, accountants, etc.
A business plan requires _______
objective assessments of individual skills
The Scope is determined by ______
who is expected to read the plan
A plan should consider the:
1. Entrepreneur's perspective
2. Marketing perspective
3. Investor's perspective
Depth and detail of the business plan depends on:
- Size and scope of the proposed new venture
- Size of the market
- Competition
, - Potential growth
The business plan is valuable because it:
a. Helps determine the viability of the venture in a designated market
b. Guides the entrepreneur in organizing the planning activities
c. Serves as an important tool in helping to obtain financing
The business plan must reflect:
1. Strengths of the management and personnel
2. product/service
3. Available resources
Lenders (banks) are Interested on ______
the ventures ability to pay back the debt
Lenders (banks) focus on the _______
four C's of credit- Character, cash flow, collateral, and equity contribution
Banks are interested in ________
analysis of the business opportunity and risks
Investors (venture capitalists and angels) _______
1. Emphasize on the entrepreneur's character
2. Conduct background checks
3. Demand high rates of return
4. Focus on market and financial projections
