Parts of a Business Plan

What is a business plan?

• A document outlining personal goals

• A written statement of goals and objectives for a business with a strategy to achieve them

• A list of products and services

• A marketing strategy

What does a mission statement describe?

• The financial status of a business

• The competitive advantage of a business

• The purpose of the business

• The marketing strategy

What is included in the company description section of a business plan?

• Financial projections

• Business activity, market, competitive advantage

• Marketing strategies

• Product pricing

What does a pro forma balance sheet report?

• Marketing strategies

• Business goals

• Assets, liabilities, and net worth of the business

• Product life cycle

What is the purpose of a pro forma income statement?

• To outline the business structure

• To project revenues and expenses to show profitability

• To describe the market overview

• To list the products and services

Match the business plan component to its description

• financial plan

• Determines the size of a market with the marketing analysis and describes potential customers to provide a customized plan to reach them.

• executive summary

• Summarizes what one wants to accomplish with a business, the products and services one sells, financial outlook, the funding needed, one's goals, and one's achievements.

• organizational structure/management bios

• Provides an overview of the business structure, chain of command, licenses, permits

• marketing and sales

• Includes a budget, a 12 month income statement projection, cash flow statements, a balance sheet, and capital requirements to show investors how their money will be spent.