BUS 165: Chapter 8

Elevator Pitch

A 30-second long action-oriented description of a business, designed to sell the idea of the business to another

Invention Plan

A business plan that provides information to potential licenses. Invention plans focus on the details of an invention, including intellectual property rights

Business Plan

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

New Entrant Business

A firm whose product or service is establishes elsewhere but is new to this market

Pioneering Business

A firm whose product or service is new to the industry or is itseld creating a new industry

Offering Circular (OC)

A legal document required by firms seeking funding through equity crowdfunding platforms created under the JOBS Act. An OC contains SEEC required forms offering memorandum and the financial statements of the firm

Tagline

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

Executive Summary

A one or two page orverview of the business, its business model, market, expectations, and immediate goals. It is typically put at the start of a business plan, abd is the most popular summary form for a business plan

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

Mission Statement

A paragraph that describes the firms goals and competitive advantages

Proprietary Technology

A product/service, or an aspect of one that is kept as a trade secret or is protected legally using patent, copyright, trademark, or service mark

Signature Block

A snapshot of text typically inserted at the bottom of an email, which contains contact information for the sender of the email

Private Placement Memo (PPM)

A specialized legal form of business plan crafted by lawers for the purpose of soliciting formal investments

Vision Statement

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

Informational Plan

An abridged plan to give potential customers or suppliers information about the company and its product or service

Proof-of-Concept Website

An internet based type of business plan providing information or demonstration of a product or service designed to solicit information on customer interest

Micro-Commitment

An online action that is quick and easy to make and connects you to the message, but does not require a substantial or financial commitment, such as liking or reposting a post

Data Room

An online repository for the documentation back-ups and details of the specifics of your business plan and the most recent copy of your business plan

Test Marketing

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

Operational Plan

Business plans designed to be used internally for management purposes

Screening Plan

GIves the basic overview of the firm and a detailed look at the financials

Pre-Selling

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

Pitch

Name given to a formal presentation of a slide show summarizing your business plan given before judges or potential investors/partners

Pitch Deck

Name of the slide show presentation that summarizes the business or more often, the business plan

Key Employee/Partner Plan

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

Working Capital

The cash immediately available to the firm for the day-to-day expenses and operations of the firm

Internal Understanding

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

Research and Development (R&D)

The part of a business that is focused on creationg new producta or services, and preparing new technologies, ideas, products, or services for the firms market

Risks

The parts of a business or business plan that expose the firm to any kind of loss - profits, sales, reputation, assets, customers, etc.

Due Dilligence

The process of investigating a business to determine its value

Traction

Those characteristics of your business that show it is making progress, such as making sales, recruiting customrs, being sold in more locations, etc.