Business Plan and components

What is a business plan?

• A document for internal communication

• A proposal that describes a new business

• A diary of an entrepreneur

• A report for completed projects

Why do bankers and lenders require a business plan?

• To obtain financing

• To evaluate the entrepreneur's commitment

• To understand the market trends

• For entertainment purposes

What is NOT a purpose of a business plan?

• To serve as a personal journal for the entrepreneur

• To obtain financing

• To help entrepreneurs organize and analyze data

• To provide a start-up proposal

What does the executive summary in a business plan include?

• A detailed financial plan

• A brief description of key points of each section

• A list of potential investors

• An autobiography of the entrepreneur

What is presented in the product/service plan of a business plan?

• Market share analysis

• Product or service being offered

• Employee handbook

• Annual profit forecasts

What does the management team plan present?

• Environmental impact assessments

• Qualifications of the entrepreneurs

• Customer service protocols

• Social media marketing strategies

What is analyzed in the industry/market analysis section?

• Employee satisfaction

• Office layouts

• The competition and customers

• Historical financial data

What does the operational plan section include?

• Celebrity endorsements

• Break-even analysis

• Processes involved in delivering the product/service

• Annual leave policies

What is included in the organizational plan?

• List of office supplies

• Daily routines of employees

• Key management personnel

• Favorite recipes of the founder

What does the marketing plan describe?

• Employee of the month criteria

• The history of the industry

• The founder's vision and mission

• How the business will make customers aware of its products/services