Business Plan Vocabulary

Cover letter

a letter that introduces and explains an accompanying document or set of documents

Executive summary

a short restatement of the report. Captures the interest of its readers.

Harvest strategy

aka Exit strategy: the way an entrepreneur intends to extract, or harvest, his or her money from a business after it is operating successfully.

Small Business Administration (SBA)

an independent agency of the federal government that was created to help Americans start , build, and grow businesses.

Statement of purpose

A brief explanation of why you are asking for a loan and what you plan to do with the money

Trade associations

organizations made up of professionals in a specific industry

Small Business Development Centers (SBDC)

provides management assistance to current and prospective small business owners

Business Plan

written document that describes all the steps necessary for opening and operating a successful business.

Pro forma financial statement

financial statement based on projected revenues and expenses

Service Corps of Retired Executives (SCORE)

made up of more than 12,400 retired executives who volunteer their time to provide entrepreneurs with real-world advice and know-how.