Intro to Entrepreneurship Chapter 3

Statement of Purpose

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

Purpose of business plan

A business plan sets specific objectives and describes how your business expects to achieve them.

Proforma Financial Statement

A financial statement based on projected revenues and expenses is called...

Cover Letter

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

Table of Contents

A listing of the material included in a publication.

Executive Summary

A short restatement of the report. It should: Describe your business concept and communicate what is unique about your idea. Include projection for sales, costs, and profits. Identify your needs (inventory, land, building, equipment, etc. State how much you want borrow.

Business Plan

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

Skills and Experience

A written summary of your experience is an essential part of your business plan. In the introduction.

Small Business Administration

An independent agency of the federal government that was created to provide support to entrepreneurs and small businesses.

Financial Statements

Business must include projected financial statements. In the financial management.

Importance of business plan

Can serve as a tool for managing your business

Introduction

Contains many important details about the proposed business idea.

Small Business Development Centers

Cosponsored by the SBA, provide technical assistance to small businesses and prospective entrepreneurs.

Products/Services

Describe and explain how they differ from those already on the market. In the Marketing.

Purpose of business plan

Describes the background and experience of the leadership.

Marketing

Describes the products or services you will offer, the market, the industry, and your location.

Professional Consultants

Entrepreneurs can hire experts to help them.

Market

Explain who your prospective customers are, how large the market is for your product or service, how you plan to enter that market, and how you plan to deal with competition. In the Marketing.

Purpose of business plan

Explains the idea behind your business and spells out how your product or service will be produced and sold.

Importance of business plan

Helps you communicate your ideas to others.

Operations

In this section of your business plan, you should explain how the business will be managed on a day-to-day basis and discuss hiring and personnel procedures.

Concluding Statement

In this section you summarize the goals and objectives you have for your business.

Exit Strategy

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

location

Lenders and investors want to know exactly where your business will be. Often a critical factor to its success.

Importance of business plan

Makes you think about all aspects of your business.

Importance of business plan

May help you secure financing for your business.

Service Corps of Retired Executives

Nonprofit association made up of working and retired business professionals who volunteer their time to provide small businesses and entrepreneurs with free real-world advice and know-how.

Chamber of Commerce

Offers assistance and information to entrepreneurs . It can provide information on trends affecting local businesses, local resources, and zoning an licensing information.

Trade Associations

Organizations made up of professionals in a specific industry.

Advantages

Performance, Quality, Price, Reliability, Promotion, Distribution, Location, and Public image or reputation. In the introduction.

Identification of Risks

Prospective lenders and investors will want to know what your business faces and how you plan to deal with them. In the financial management.

Ownership and Legal Structure

Section detailing your form of ownership. In the introduction.

Financial Management

Section of your business plan will help determine your financial needs. It consists of identification of risks, financial Statements, and funding request and return on Investment.

Detailed description

Something inspired the idea for your business. How you came up with the idea. In the introduction.

Appendix

The business plan includes supporting documents that provide additional information and back up statements made in the body of the report. Some documents you would find is: Tax Returns of the business owner Copy of licenses and other legal documents Letters of recommendation... etc

Industry

To find this information, you will need to perform research. You should include in this section: External factors affecting your business, such as high competition or a lack of certain suppliers. Growth Potential, including growth forecasts. Economic trends. Technology trends In the marketing.

Financial Institutions

When entrepreneurs are not familiar with the financial aspect of a business, they can talk to a banker or accountant where...

Funding Request and Return on Investment

You must indicate how much you need to borrow and how you plan to use the money. In financial management.

Title Page

Your business plan should have a title page that indicates the name of your company, the date, the owner of the company, the title of the owner, and the address and phone number of the company.