Business

Chapter 6

Discussion Questions

2. You should write a business plan when you become serious about turning your idea and actually implementing it. When building a very small business or do not plan for significant growth, a business plan is not necessary.

3. The two types of business plans are a mini plan, which you would use when seeking outside financing from banks, and a comprehensive plan, which you would use when describing a new opportunity, facing significant change in the business or the external environment, or explaining a complex business situation.

6. Cover page – company name, address, phone and fax number, and website; tagline and logo; name of contact person (preferably the president) with mailing address, phone and fax number, and e-mail address; date on which the plan was prepared; a disclaimer that the plan is being provided on a confidential basis to qualified investors only and is not to be reproduced without permission; and number of the copy.

Table of Contents – provides a sequential listing of the sections of the plan with page numbers.

Executive Summary – it is meant to catch the readers’ attention and must convey a clear and concise picture of the proposed venture and also create a sense of excitement regarding its prospects.

Synopsis – briefly covers all aspects of the business plan while giving each topic relatively equal treatment.

Narrative – gives more information and generates enthusiasm for businesses that are breaking new ground with a new product.

Industry, Target Customer, and Competitor Analysis – present an opportunity and demonstrate why there is a significant market to be served.

Company Description – it is a brief description of the firm. If it is an already existing business, its history is included.

Product/Service Plan – this describes the products and/or service to be offered to the firm’s customers.

Marketing Plan – this describes how the firm will reach and service customers within a given market....