BP 6.3 Starting a Small Business

Business Plan

• a written description of a business idea and how it will be carried out

• the amount of money needed to open a business

• the government agency that helps small business owners develop and obtain financing

• money provided by large investors to finance new products and new businesses

The most important step in starting a business is:

• finding a partner.

• an idea.

• preparation.

• financing.

The amount of money needed to OPEN a business is...

• long-term financing.

• short-term financing.

• start-up financing.

What is (probably) the most difficult part of starting a business?

• finding a partner.

• obtaining financing.

• finding a location.

• determining a passion.

Which type of financing is needed to pay for the current operating activities of a business (1-2 months-a year)?

• start-up financing

• short-term financing

• long-term financing

These resources, such as land, buildings, and equipment, usually require large amounts of money and will be paid over many, many years.

• Short-term financing

• Long-term financing

The most popular use of a business plan is to persuade lenders and investors to finance ventures.

• True

• False

In the opening section of the business plan, a business owner or entrepreneur will list all of the start up costs, short and long-term financial needs and sources of financing.

• True

• False

A business plan should have a marketing plan and a financial plan.

• True

• False

The first step in the business plan is to ​ (a)   information. Next, the owner should ​ (b)   strategic alternatives. Finally, each section of the business plan should be ​ (c)   . Before the plan is complete, the owner should have experts, review and offer their ​ (d)   .

• gather and review
• develop
• written
• advice