Chapter 3 Entre

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

Pro Forma Financial Statement

A financial statement based on projected revenues and expenses

Cover letter

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

Executive Summary

A short restatement of a report

Business Plan

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

Helps you communicate your idea to others

Importance of a Business Plan

Financial Management Element

Included in the main body of a business plan

Service Corps of Retired Executives (SCORE)

Made up of more than 10,500 retired executives who volunteer their time to help entrepreneurs

Undefined target markets and poor research

Mistakes in Business Planning

Chamber of Commerce

Offers assistance and information to Entrepreneurs and can provide information on trends affecting local businesses, local resources, and zoning and licensing information

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

Sets specific objectives and describes how our business expects to achieve them

Purposes of a Business Plan

Competition

What a business plan is not intended for