chapter 5 Flashcards
to know all (80 cards)
What is the primary value of a business plan?
To create a written outline that evaluates all aspects of the economic viability of your business venture.
A business plan serves as a roadmap for the entrepreneur and can be used to attract investors and lenders.
List four reasons why a business plan is valuable.
- Defines and focuses objectives using appropriate information and analysis
- Serves as a selling tool with lenders, investors, landlords, and banks
- Uncovers omissions and weaknesses in planning
- Solicits opinions and advice
What are suggested topics to include in a business plan?
- Summary
- Mission and Vision Statement
- The People
- Your Business Profile
- The product or service
- Economic Assessment
- Cash Flow Assessment
- Marketing Plan
- Management Plan
- Financial Plan
- Appendices
What is the purpose of a Mission and Vision Statement in a business plan?
To provide a concise outline of your purpose and goal.
What should be included in the Economic Assessment section of a business plan?
An assessment of the competition you can expect in your business.
What are the four basic components of a marketing mix?
- Product
- Place
- Price
- Promotion
What are the four basic functions of management?
- Planning
- Organizing
- Directing
- Controlling
What does the financial plan in a business plan include?
- Statement of financial requirements
- Income statement
- Beginning balance sheet
- Cash-flow analysis
- Break-even analysis
True or False: The ultimate decision maker in a business is the entrepreneur.
True
What is marketing according to the Chartered Institute of Marketing?
The management process responsible for identifying, anticipating, and satisfying customer requirements efficiently and profitably.
What are the critical attributes of mentorship?
- Dynamic relationship
- Focused and growing over time
- Cannot be mandated
Who typically serves as a mentor?
A business owner, manager, or other senior executive with at least five years of experience.
What is business networking?
A marketing method by which business opportunities are created through networks of like-minded business people.
What are some effective strategies for business networking?
- Set specific goals before attending
- Ask open-ended questions
- Become a walking resource center
- Prepare an elevator speech
- Follow up quickly on new contacts
Fill in the blank: The four basic components of a marketing mix are product, place, price, and _______.
[promotion]
What is the definition of Human Resource Management (HRM)?
The strategic and coherent approach to the management of an organization’s most valued assets - the people.
What is the role of an accountant in the entrepreneurial process?
Provides financial data and statements for the business and interprets the information for the entrepreneur.
What is the purpose of a cash-flow analysis in a financial plan?
To identify the cash generated after expenses and loan principal payments are deducted.
What does the break-even analysis identify?
The break-even point, where a business has no profit and no loss.
True or False: Online networking is preferred by most professionals over face-to-face networking.
False
What should a protégé in a mentorship program demonstrate?
Willingness to apply advice received, respect privacy of information, and document meeting results.
What is the impact of being rude and unprofessional on your business?
It reflects badly on your business.
What should you do after meeting new contacts?
Phone or email them to express that you enjoyed meeting them and mention personal details from your discussion.
Why is it important to follow through on referrals quickly?
Your actions reflect on the person who referred you, and respecting their trust can lead to more referrals.
