chapter 8 entrepreneurship
executive summary
A one to two page overview of the business, its business model, market,expectations, and immediate goals.
informational plans
give potential customer or suppliers information about the company and its product or service.
preselling
involves introducing your product to potential customers and taking orders for later delivery
risks
the parts of the business or business plan that exposes the firm to any kind of loss-profits, sales, reputation, assets, customers, and so on.
5-M Model
1. Mantra:Follows vision/tag line 6 words most 2. Misson: focus on comp advantage and goals, definite period in mind. 3. Measures: business goals given as measurable results, sales, market share, employment, locations, profit, growth, etc. 4. Method: the activities that make your business successful over time. 5. Mechanics: Ties everything above together.
presenting your plan
1. Passion for the business 2. Expertise about the business and the plan 3. How professional you are in your work. 4. How easy it would be to work with you.
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. invention plans focus on the details of an invention, including intellectual property rights.
mission statement
A paragraph that describes the firms goals and competitive advantages
vision statement
A very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm.
external legitimacy
The 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 owners family.
research and development
The part of a business that is focused on creating new products or services and preparing new tech, ideas, products, or services for the firms market.
screening plan
also called a mini-plan; gives the basic overview of the firm and a detailed look at the financials
operational plan
business plans designed to be used internally for management purposes.
business plan
document designed to detail the major characteristics of a firm.
proof of concept website
an internet based type of business plan providing info or demos of a product or service designed to solicit info on customer interests
tagline
(also known as slogan) memorable catchphrase that captures the key idea of a business, its services, product, or customer.
internal understanding
The extent to which employees, investors, and the family members involved in the business know the businesses purpose and operations.
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.
cover letter
a one page document on business stationary that introduces the business plan and the business owner to the recipient and indicates why the recipient is being asked to read the plan.
private placement memorandum
a specialized legal form of business plan created by lawyers for the purpose of soliciting formal investmetns
proprietary technology
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.
key employee/partner plan
provides info of the company, product/service, market, and critical risks to prospective business or marketing partners or to prospective key employees.
test market
selling your product or service in a limited area, for a limited time.