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Unformatted text preview: Chapter 08 - Business Plans: Seeing Audiences and Your Business Clearly CHAPTER 8: BUSINESS PLANS: SEEING AUDIENCES AND YOUR BUSINESS CLEARLY Chapter Summary This chapter shows the student how to write different types of business plans and the portions or abbreviated versions mission statement, elevator pitch, etc. The appropriate times and situations to use each are explored as well as details explored for each section. Students are warned abut typical pitfalls in writing plans and instructed in presenting the business plan. Learning Objectives After studying this chapter, the student should be able to: 1. Understand why and when to develop a business plan. 2. Know how to tell the business plan story. 3. Learn the major sections of the classic business plan. 4. Focus business plan sections to meet specific needs. 5. Identify the major pitfalls when creating business plans. 6. Master presenting your business plan to others. Focus on Small Business Case: Global Fromage Gail Berman and Sara Lamont started their business with no business plan, only an informal discussion about the goals and directions of the firm. To their surprise but not their accountants they were unable to show a profit. By constructing financial statements for the firm, they soon discovered how to correctly price their cheeses. Discussion Questions 1. What are the kinds of reasons you think Gail and Sara would have given for not doing a business plan? There is no clear reason given in the case. Typical reasons are that people dont know how to do a plan, or it delays the start of their business, or they feel they know the business or the market well enough to get going, or they think they have enough money to weather any problems that crop up. 8-1 Chapter 08 - Business Plans: Seeing Audiences and Your Business Clearly 2. What are the kinds of business costs that Gail and Sara are likely to have missed? Costs would include rent, utilities, inventory, their own salaries, start-up costs like building-out the shop and buying the equipment for the business (refrigerated cases, cash registers, cutting and wrapping equipment, etc.) and the supplies needed (e.g. wrap, boxes, napkins, etc.), advertising and other marketing costs. 3. Since they got the money to start-up from their families, who would have been the audience for the business plan? Their families, specifically their husbands. 4. Do you think a business plan can make sense for a business after it starts? Why or why not? It can make sense. Part of the benefit is that there are actual numbers to go back and learn and see how they fit together. While it may seem like closing the barn door after the horses run away, doing the plan after starting can help a business get control of previously uncontrolled costs. It can serve as a way to direct or point the firm for the future from a strategic or financial standpoint. It can give investors or creditors more confidence that things will get better....
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- Spring '09