MGMT 321 Ch 8

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 owner's family

vision statement

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

tagline

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

proof-of-concept website

an internet-based type of business plan providing information or demonstration of a product or service designed to collect information on customer interest

operational plan

business plans designed to be used internally for management purposes

informational plans

gives potential customers or suppliers information about the company and its products or services

screening plan

gives the basic overview of the firm and a detailed look at the financials (aka mini-plan)

preselling

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

key employee/partner plan

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

test marketing

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

Business Plan

A document designed to detail the major characteristics of a firm-- its product or service, its industry, its market, its manner or operating (production, marketing, management), and its financial outcomes with an emphasis on the firm's percent and future

Cover letter

a 1 page document on business stationary (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 1-2 page 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. (MOST IMPORTANT PART OF BUS 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. invention plans focus on the details of an invention, including intellectual property rights

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 & advantages

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

internal understanding

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

research and development

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

risks

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