Chapter 4

What is a business plan?

• Written document that only outlines the business practices of the new business.

• Written document that describes the financial aspects of the business

• Written document that only describes the ownership of the business.

• Written document that describes all the steps necessary for opening and operating a successful business.

Why do you need a business plan?

• To explain your idea

• it's a road map that sets objectives and goals for the business.

• the ability to get financing.

• all of the above

Complete the sentence: A business plan...

• is useful once your business is operational but not much help during the startup phase

• can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.

• is not usually needed once the business is up and running

How a company will make customers aware of its products/services

• Marketing Plan

• Product and Service Plan

• Industry Overview

• Financial Plan

A brief account of the key points contained in a business plan

• Executive Summary

• Mission Statement

• Company Description

• Vision Statement

A target market is a group of _______ that the _______ has decided to aim its marketing efforts and ultimately its merchandise towards

• Companies, Business

• Customer, Business

• Companies, Research

• Business, Customer

Who are part of the external audiences for the business plan?

• government

• social entrepreneur

• board members

• potential volunteers

A standard business plan is one page in length

• True

• False