CHAPTER 8: BUSINESS PLANS: SEEING AUDIENCES AND YOUR BUSINESS CLEARL
Invention Plan
focus on the plan that focus on the details of an invention, including intellectual property rights
Private Placement Memorandum (PPM)
- A specialized legal form or the other type of plan that adds to a business plan crafted by lawyers for the purpose of soliciting formal investments.
Elevator Pitch
30-second (100 words or less) action-oriented description of a business designed to sell the idea of the business to another.
Operational Plan
A business plan designed to be used internally for management purposes and serve as working documents within a business
Informational Plan
A business plan that gives potential customers or suppliers information typically consist of company and organization sections
Proof-of-Concept Website
A special form that based on Internet-based, and it is a business plan that provides information or demonstration of a product or service designed to solicit information on customer interest
Key Employee/Partner Plan
A summary plan that provides information on the company, product/service, market, and critical risks to prospective business or marketing partners or to prospective key employees including the all materials of an informational plan.
Screening Plan
Also called a mini-plan, gives the basic overview of the firm and a detailed look at the financials.
Data room
An online repository (e.g., Drop box, Box, Share Vault) for the documentation that back ups and details the specifics of your business and business plan. T
Business/team
Describes the current stage of the business, the timeline, and the team behind the product
Problem
Describes the need for the product or service
Product
Describes the product or service and how it is used
Market
Describes the size and characteristics of the customer group and how they will buy the product or service (e.g., in person, online, catalog)
Competitive advantages
Explain what makes the product or service unique, often in terms of an entry wedge.
Financial summary
Gives sales, growth, and profitability information, and if funding is sought, an overview of that
Overstated numbers Numbers that are wrong Inadequate cushion Inadequate payback Narrative and financials that do not fit No direct customer connection Uncertain sales (especially conversion rates) Overlooked competition Experience deficits "What" problems Deadly aggravations
The Most Common Critical Risks in a Pla
Working capital
The cash immediately available to the firm for the day-to-day expenses and operations of the firm
Pitch Deck
The name of a slideshow presentation that summarizes a business or more often a business plan.
Risks
The parts of a business or business plan that expose the firm to any kind of loss- profits, sales, reputation, assets, customers, and so on.
Due diligence
The process of investigating a business to determine its value and potential for investment.
Preselling
This involves introducing your future product to potential customers and taking orders for later delivery
External legitimacy Internal understanding.
Two circumstances under which creating a business plan is absolutely necessary
business plan
is a document designed to detail the major characteristics of a firm—its product or service, its industry, its market, its manner of operating (production, marketing, management),and its financial outcomes with an emphasis on the firm's present and future
Vision Statement
is a very simple 5- to 10-wordsentence or, better yet, a tagline that expresses the fundamental idea or goal of the firm. Related to the vision statement is a mission statement, which is typically longer (20-50 words) and often adds the firm's competitive advantage.
Executive summary
one- to two-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.
Pitch
provides an overview of the key points of the business plan—a chance to sell your ideas and, most of all, a chance to sell yourself.
Business Plan
the standard for describing the business in detail