How To Write A Business Plan

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Diane French
5 years ago
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1 Study Guide Section 6.1 Before You Begin Think about the following question: What Is a Business Plan? If I were going to do something important, would I plan before I did it? Answer: Yes No If Yes, why would you plan first? Instructions for Before You Begin are in the Teacher s Wraparound Edition, page 139. If No, why wouldn t you plan? What is a plan and what is its purpose? Study Guide 51

If I were going to do something important, would I plan before I did it?

2 Concepts Review 1. What does the process of writing a force an entrepreneur to do? Figure out how to make the business work. 2. How does a well-written benefit an entrepreneur? It shows investors that you have carefully through what you intend to do to make the business profitable. It guides you every step of the way as you develop your business. It becomes a decision-making tool. It can be used to track whether the company is meeting its goals. 3. What two factors determine which type of should be prepared? The type of business and the audience. 4. What are the four main types of s? Quick summary, oral presentation, investor s, and operational. 5. What are the Three C s that should be addressed in a? Concept, customer, and capital. 52 Entrepreneurship Owning Your Future

It becomes a decision-making tool. It can be used to track whether the company is meeting its goals. 3. What two factors determine which type of should be prepared?

3 6. List the seven parts of an investor s. Business idea, opportunity and market analysis, financial strategies, organizational structures, legal structures, business management, plan for growth. 7. What elements are included in the Business Idea section of a written? Description of the product or service. The type of business you will start and the type of business ownership you will use. It may also describe how the business is socially responsible. 8. What are the eight elements that should be included in the executive summary of a? Mission statement; business name and location; date business will begin; owner s name, function, and contact information; opportunity; products or services; economics of one unit; future plans. 9. Name two Internet resources for information about s. The Website of the Small Business Administration ( and What two questions should an entrepreneur consider early in the process of developing a? What type of business will you form (manufacturing, wholesaling, retailing, or service)? What type of ownership will it have (sole proprietorship, partnership, corporation, or cooperative)? Study Guide 53

It may also describe how the business is socially responsible. 8. What are the eight elements that should be included in the executive summary of a?

4 Crossword S U M M A R Y C I A R O W N E R S H I P K N V I E C E T T E S F I N A N C I A L S P I T C H L N E T O A R R L V C U S T O M E R Y I C L S C E X E C U T I V E A V S P R E S E N T A T I O N T O R A L R Use the clues below to solve the puzzle, which contains many vocabulary terms from Section 6.1. Across 1. With 12 ACROSS, a s list of highlights and key selling points 6. A must discuss the type of, such as partnership or corporation 7. Business plan section that provides cash flow data 9. With 11 down, a 30-second explanation of an idea for a new business 10. One of the Three C s for a 12. With 1 ACROSS, a s list of highlights and key selling points 13. With 14 ACROSS, type of given as a slide show with a running narrative 14. With 13 ACROSS, type of given as a slide show with a running narrative Down 2. Part of a that describes the size of your target audience and your competition (2 words) 3. One of the Three C s for a 4. One of the Three C s for a 5. Audience for a detailed 8. A idea is typically for a product or 11. With 9 ACROSS, a 30-second explanation of an idea for a new business 54 Entrepreneurship Owning Your Future

With 12 ACROSS, a s list of highlights and key selling points 6. A must discuss the type of, such as partnership or corporation 7. Business plan section that provides cash flow data 9.

5 Check Yourself In the sentences below, fill in the blanks with the correct answer. 1. A for a for-profit business typically focuses on the entrepreneur s financial goals. 2. One example of a quick-summary type of is called an pitch. elevator 3. The oral-presentation type of includes a colorful slideshow. 4. The purpose of the oral presentation is to interest potential investors in reading the detailed. 5. A quick-summary type of lasts no more than 3 minutes. 6. A written should be no more than 20 typed pages. 7. The executive summary of a written should be 2 pages or less. 8. It is better to discover that a business won t work on paper before you invest significant time and money. Circle whether each statement is true or false. 9. True False A well-written never needs to be revised. 10. True False The quick-summary type of is a written plan. 11. True False An operational is for use within the business only. 12. True False Potential investors will reject a poorly written. 13. True False A well-written should take at least three hours to read. 14. True False Developing a is not a simple, straightforward process. 15. True False A describes the goals of the business. 16. True False An investor s is a brief synopsis of the business idea. Extend Your Knowledge Check out the Websites of the Small Business Administration ( and for tips for entrepreneurs on creating s for new businesses. Write a short report detailing your findings. Make sure the report is the length specified by the instructor. Study Guide 55

The purpose of the oral presentation is to interest potential investors in reading the detailed. 5. A quick-summary type of lasts no more than 3 minutes. 6.

6 Extend Your Knowledge Look for tips about preparing a for a new business, not an existing business. Rubric for Paper on Business Plan Tips CATEGORY Organization and Structure is very well organized and structured into appropriate paragraphs. is well organized and structured into appropriate paragraphs. is fairly well organized, but paragraphs could have better structure. is somewhat disorganized and/or paragraphs are not well constructed. completely lacks appropriate organization and paragraph structure. Comprehension Obviously comprehends the material and understands its relevance. Appears to comprehend the material and understand its relevance. Shows adequate comprehension of the material and some understanding of its relevance. Indicates comprehension of only some of the material. Does not seem to comprehend the material at all. Spelling, Grammar, and Punctuation has no spelling, has less than 5 spelling, has 5 10 spelling, has spelling, has more than 15 spelling, Scope of Information Completely covers every required topic or question Adequately covers every required topic or question Does not adequately cover some required topics or questions Fails to adequately cover most required topics or questions Fails to cover one or more required topics or questions Entrepreneurship Owning Your Future

is well organized and structured into appropriate paragraphs. is fairly well organized, but paragraphs could have better structure. is somewhat disorganized and/or paragraphs are not well constructed.

Creating a Comprehensive Business Plan

Creating a Comprehensive Business Plan Although most people know that it is wise to have a well calculated Business Plan before starting a company, many people do not know how to properly prepare one.