Assessment No. 3 | Part 3-From Opportunity to Business Plan

The scope of the plan will depend on:

• who reads it

• shoe size of the venture

• specific industry for which the venture is intended

• an "elevator pitch" plan to engage the interest of investors

This is essential in launching a new venture. The result of many hours of preparation will be a comprehensive, well-written, and well-organized document that will serve as a guide to the entrepreneur and as an instrument to raise necessary capital and financing.

To be able to respond effectively to these questions, it is generally necessary for the entrepreneur to conduct some ____________________________.

Careful scrutiny of the marketing plan can enhance its success. However, many plans fail, not because of poor management or a poor product but because the plan was

• not specific or had an inadequate situation analysis

• unrealistic goals or did not anticipate competitive moves

• product deficiencies

• acts of God

One of the most important decisions the entrepreneurs must make in the business plan is the legal form of business. The three major legal forms of business are the:

The intent of this new law is to make the board of directors more independent and to make its members accountable to the shareholders.

The design of the organization requires the entrepreneur to specify the types of _________ needed and the __________ that must be filled.

This provides a sales estimate in the first year (monthly basis) and projects operating expenses each month. These estimates are determined from the appropriate budgets, which are based on marketing plan projections and obejctives.

This is not the same as profit. It reflects the difference between cash actually received and cash disbursements.

This reflects the condition of the business at the end of a particular period. It summarizes the assets, liabilities, and net worth of the firm.