Ch. 5 notes.docx - Chapter 5 Business plan-A document that...

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Chapter 5. Business plan: -A document that summarizes the proposed business, describes the operational and financial data, details the marketing analysis, and explains the owner’s skills and abilities. - It serves as a roadmap (guide) to success which is based on research. - It serves 2 functions: a. It provides tools: mission, vision, objectives, budgets, products, financial projections. b. It’s used to attract lenders and investors - They will use 3 test: 1. Reality test: is there a market for the product. 2. Competitive test: can the business compete. 3. Value proposition: can the business repay the borrowed funds or return profits Components of a business plan: 1. Title page and table of contents 2. Executive summary 3. Mission and vision statement 4. Product /service plan 5. Business / industry analysis 6. Competitive analysis 7. Marketing plan 8. Management plan 9. Operational plan 10. Financial plan 11. Marketing entry plan 12. Loan / investment proposal 13. Appendix (investors will read executive summary and financial plan)
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  • Winter '17
  • Corporation

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