Chapter 6 What is a Business Plan

SWOT Analysis

A SWOT analysis is a business evaluation method that draws its name from the four areas it evaluates (Strengths, Weaknesses, Opportunites, and Threats).

Executive Summary

A one- or two-page summary of highlights, including the key selling points of the investment opportunity.

Intangible

Is Nonmaterial things.

Business Opportunity

Is a consumer need or want that can potentially be met by a new business.

Trade Show

Is a convention where related businesses come to promote their products or services.

Prototype

Is a model on which future reproductions of an invention are based.

Creative Thinking

Is a process that involves looking at a situation or object in new ways.

Want

Is a product or service that people desire

Business Plan

Is a statement of your business goals, the reasons you think these goals can be met, and how you are going to achieve them.

Critical Thinking

Is also called vertical thinking, but it doesn't mean you are being negative.

Need

Is defined as something that people must have to survive, such as water, food, clothing, and shelter

Franchiser

Is what the franchise seller is called.

Cost/Benefit Analysis

It is the process of adding up all the expected benefits of an opportunity and subtracting all the expected.

Window of Opportunity

Period of time in which you have to act before a business opportunity is lost.

Business Broker

Someone that is hired to sell businesses.

Nondisclosure Agreement

This is a legal document in which a person or group agrees to keep certain information confidential.

Royalty Free

This is a regular, ongoing payment that is based on a percentage of the sales a franchise earns.

Opportunity Cost

This is the value of what you will give up to get something.

Calculated Risk

This means carefully considering the potential costs and benefits.

Franchise or (Franchise Buyer)

is the right to sell the company's products or services in a particular location and for a specified length of time.

Feasibilty

refers to how possible or worthwhile it is to pursue your idea, to see if it is actually an opportunity.