SBM 8

proof-of-concept Web site

an Internet-based type of business plan providing info or demonstration of a product or service designed to solicit info on customer interest

operational plan

business plans designed to be used internally for management purposes

external legitimacy

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

internal understanding

extent to which employees, investors, and family members involved in the business know the business's purposes and operations

informational plans

give potential customers or suppliers info about the company and its product or service

preselling

involves introducing your product to potential customers and taking orders for later delivery

tagline/slogan

memorable catchphrase that captures the key idea of a business, its service, product, or customer

risks

parts of a business or business plan that expose the firm to any kind of loss-profits, sales, reputation, assets, customers, and so on

key employee/partner plan

provides info on the company, product/service, market, and critical risks to prospective business or marketing partners or to prospective key employees

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

screening plan

also called a mini-plan, gives the basic overview of the firm and a detailed look at the financials

cover letter

a 1 page document on business stationery(also called 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 to 2 page(250-500 words) 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 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. focus on the details of a new product, including intellectual property rights

business plan

a document designed to detail the major characteristics of a firm (product/service, industry, market, manner of operating, financial outcomes with emphasis on the firm's present and future)

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 and competitive advantage

test marketing

selling your product or service in a limited area, for a limited time

research and development

the part of a business(& plan) that is focused on creating new products or services and preparing new technologies, ideas, products, or services for the firm's market

vision statement

very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm