lOMoAR cPSD| 48011787
Downloaded by Vincent kyalo
()
, lOMoAR cPSD| 48011787
CGMV
QUESTIONS AND ANSWERS
Explain the purpose and objectives of business plans.
• A business plan is a document that sets out the basic idea
underlying a business and describes related startup
considerations. It should explain where the entrepreneur is
presently, indicate where he or she wants to go, and outline
how he or she proposes to get there.
• business plan has three key elements:
o (1) a logical statement of a problem and its
solution, o (2) a significant amount of hard
evidence, and o (3) candor about the risks, gaps,
and assumptions that might be proved wrong.
• The objectives of a business plan include assessing whether a
good idea is also a good investment opportunity, determining
whether the business aligns with your personal goals,
providing direction for insiders, and convincing outsiders to
enter into a relationship with the company.
Give the rationale for writing (or not writing) a business plan when
starting a new venture.
• Studies attempting to measure whether entrepreneurs who
have business plans do better than those who don’t have
produced mixed results. Some findings suggest a
relationship; others do not.
Downloaded by Vincent kyalo
()
, lOMoAR cPSD| 48011787
CGMV
• What ultimately matters is not writing a plan, but
implementing it. The goal is to execute the plan.
• An entrepreneur must find the right balance between
planning and becoming operational.
• For some startups, excessive planning isn’t beneficial
because the environment is too turbulent, fast action is
needed to take advantage of an opportunity, or there’s a
shortage of capital.
• Most entrepreneurs need the discipline that comes with
writing a business plan. A written plan helps to ensure
systematic, complete coverage of the important factors to be
considered in starting a new business.
• A business plan helps an entrepreneur communicate his or
her vision to current and prospective employees of the
business.
• By enhancing the business’s credibility, a business plan
serves as an effective selling tool with prospective customers
and suppliers, as well as investors.
• A short (dehydrated) plan is an abbreviated form of a
traditional business plan that presents only the most
important issues and projections for the business.
• A comprehensive plan is a complete business plan that
provides an in-depth analysis of the critical factors that will
determine a business’s success or failure, along with the
underlying assumptions.
Downloaded by Vincent kyalo ()
, lOMoAR cPSD| 48011787
CGMV
. Explain the concept and process for developing a business model.
• The term business model has become a popular phrase in
business, especially among entrepreneurs and their investors.
• The business model measures the anticipated results of the
core business decisions and all the trade-offs that determine a
company’s profits and cash flows.
• Understanding the business model is especially important in
a startup, where there is so much uncertainty.
• A business model explains in a systematic and clear way how
a business will generate profits and cash flows, given its
revenue sources, its cost structures, the required size of
investment, and its sources of risk.
Downloaded by Vincent kyalo
()
Downloaded by Vincent kyalo
()
, lOMoAR cPSD| 48011787
CGMV
QUESTIONS AND ANSWERS
Explain the purpose and objectives of business plans.
• A business plan is a document that sets out the basic idea
underlying a business and describes related startup
considerations. It should explain where the entrepreneur is
presently, indicate where he or she wants to go, and outline
how he or she proposes to get there.
• business plan has three key elements:
o (1) a logical statement of a problem and its
solution, o (2) a significant amount of hard
evidence, and o (3) candor about the risks, gaps,
and assumptions that might be proved wrong.
• The objectives of a business plan include assessing whether a
good idea is also a good investment opportunity, determining
whether the business aligns with your personal goals,
providing direction for insiders, and convincing outsiders to
enter into a relationship with the company.
Give the rationale for writing (or not writing) a business plan when
starting a new venture.
• Studies attempting to measure whether entrepreneurs who
have business plans do better than those who don’t have
produced mixed results. Some findings suggest a
relationship; others do not.
Downloaded by Vincent kyalo
()
, lOMoAR cPSD| 48011787
CGMV
• What ultimately matters is not writing a plan, but
implementing it. The goal is to execute the plan.
• An entrepreneur must find the right balance between
planning and becoming operational.
• For some startups, excessive planning isn’t beneficial
because the environment is too turbulent, fast action is
needed to take advantage of an opportunity, or there’s a
shortage of capital.
• Most entrepreneurs need the discipline that comes with
writing a business plan. A written plan helps to ensure
systematic, complete coverage of the important factors to be
considered in starting a new business.
• A business plan helps an entrepreneur communicate his or
her vision to current and prospective employees of the
business.
• By enhancing the business’s credibility, a business plan
serves as an effective selling tool with prospective customers
and suppliers, as well as investors.
• A short (dehydrated) plan is an abbreviated form of a
traditional business plan that presents only the most
important issues and projections for the business.
• A comprehensive plan is a complete business plan that
provides an in-depth analysis of the critical factors that will
determine a business’s success or failure, along with the
underlying assumptions.
Downloaded by Vincent kyalo ()
, lOMoAR cPSD| 48011787
CGMV
. Explain the concept and process for developing a business model.
• The term business model has become a popular phrase in
business, especially among entrepreneurs and their investors.
• The business model measures the anticipated results of the
core business decisions and all the trade-offs that determine a
company’s profits and cash flows.
• Understanding the business model is especially important in
a startup, where there is so much uncertainty.
• A business model explains in a systematic and clear way how
a business will generate profits and cash flows, given its
revenue sources, its cost structures, the required size of
investment, and its sources of risk.
Downloaded by Vincent kyalo
()
