Chapter 15 Flashcards
(18 cards)
Before you begin writing your business plan:
- think about the need of your target audience
- think about your elevator pitch
- get your mentor and advisory team on board
- consider how your plan will showcase your passion and confidence
- gather all the completed Action Steps
- consider starting with the material you feel most comfortable with
Writing your business plan: use words to introduce your strategies for:
- marketing
- production
- management
Hook your readers with clear and exciting descriptions about:
- creating a business
- assessing the competition
- designing a marketing plan
- targeting customers
- finding the right location
- building a team
When using numbers and facts, your target readers are:
- bankers
- credit managers
- venture capitalists
- vendors
- small business and commercial credit lenders
Include financials in your business plan such as:
- Income statements
- Cash flow projections
- Projected balance sheets
- Ratio analyses
Include support information in your business plan such as:
- resumes
- maps
- diagrams
- photographs
- tables
- reprints from industry journals
- letters from customers and vendors
- credit reports
- personal financial statements
Sections of a business plan:
- Cover letter
- Table of contents
- Executive summary
- Description of business
- Financials
- Appendix
What does the cover letter do?
- summarizes your plan in a way that will achieve the most good
- introduce the excitement of your plan
- tell why you are sending the plan
- your letter needs to give a good impression
Executive summary:
- serves as an introduction to the business plan
- acquaints the reader with the subject of the material that follows
- provides hard numerical data and facts (which lenders prefer)
- normally appears right after the table of contents
- is written after the plan is completed
Part A of the business plan:
Business description
Plan B of the business plan:
The market and the target customer
Part C of the business plan:
The competition
Part D of the business plan:
Marketing strategy
Part E of the business plan:
Location
Part F of the business plan:
Management
Part G of the business plan:
Human Resources
4 standard areas of the financial section:
- Opening and projected balance sheets
- Cash flow projection
- Projected income statement
- Supporting financial information and analysis
PERT chart:
- Program Evaluation and Review Technique (timeline)
- serves as a script
- will also tell you and your team members how long certain jobs should take
