MGMT 321 Ch 8
external legitimacy
The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner's family
vision statement
a very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm
tagline
aka slogan. memorable catchphrase that captures the key idea of a business, its service, product, or customer
proof-of-concept website
an internet-based type of business plan providing information or demonstration of a product or service designed to collect information on customer interest
operational plan
business plans designed to be used internally for management purposes
informational plans
gives potential customers or suppliers information about the company and its products or services
screening plan
gives the basic overview of the firm and a detailed look at the financials (aka mini-plan)
preselling
involves introducing your product to potential customers and taking orders for later delivery
key employee/partner plan
provides information on the company, product/service, market, and critical risks to prospective business or marketing partners or to prospective key employees
test marketing
selling your product or service in a limited area, for a limited time
Business Plan
A document designed to detail the major characteristics of a firm-- its product or service, its industry, its market, its manner or operating (production, marketing, management), and its financial outcomes with an emphasis on the firm's percent and future
Cover letter
a 1 page document on business stationary (letterhead) that introduces the business plan and the business owner to the recipient and indicates why the recipient is being asked to read the plan
Executive Summary
a 1-2 page overview of the business, its business model, market, expectations, and immediate goals. It is typically put at the start of a business plan and is the most popular summary form for a business. (MOST IMPORTANT PART OF BUS PLAN)
elevator pitch
a 30 second (100 words or less) action-oriented description of a business designed to sell the idea of the business to another
invention plan
a business plan that provides info to potential licensees. invention plans focus on the details of an invention, including intellectual property rights
new entrant business
a firm whose product or service is established elsewhere, but is new to this market
pioneering business
a firm whose product or service is new to the industry or is itself creating a new industry
mission statement
a paragraph that describes the firm's goals & advantages
proprietary technology
a product or service or an aspect of one that is kept as a trade secret or is protected legally using patent, copyright, trademark, or service mark
private placement memorandum
a specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments
internal understanding
the extent to which employees, investors, and family members involved in the business know the business's purposes and operations
research and development
the part of a business that is focused on creating new products or services and preparing new technologies, ideas, products, or services for the firm's market
risks
the parts of a business or business plan that expose the firm to any kind or loss-- profits, sales, reputation, assets, customers, and so on.