The business ratios table appears in chapter 17

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Unformatted text preview: pter 15: The Bottom Line, covers the Profit and Loss and General Assumptions tables. Chapter 3: Initial Assessment, includes the Breakeven table as part of the Initial Assessment. Cash Flow and the Cash Flow table are discussed in Chapter 16: Cash is King. The Balance Sheet table is covered in Chapter 14: About Business Numbers. The Business Ratios table appears in Chapter 17: Finish the Financials. Long-term plans are discussed in Chapter 19: Make it Real. CHAPTER 3: INITIAL ASSESSMENT Start your business plan with a quick assessment. “Feasibility” is the formal term for it, although I prefer to think of it as finding out “is there a there there?” Even for an ongoing business, take the time to step away from the business and look at the basics. Do your business numbers make sense? Try to separate your feelings and identity for a while, and ask yourself about its core concepts. Quick Count of Customers What you need most in business is customers. Nothing else is more important. Whether they are individual consumers, families, businesses, government organizations, or whatever, a business needs customers. So ask yourself: • Who needs or wants what this business offers? • How much are they willing to pay for it? Don’t worry too much about the difference between wants and needs. We don’t want to narrow businesses down to those based on needs, when in the real world wants are just as important as needs. Nobody needs perfume, stuffed mushrooms, or music, for example. Businesses do well supplying non-essential goods and services — as long as somebody is willing to pay for them. And it doesn’t always matter who pays for them, as long as somebody (or some organization) does. Nonprofit organizations normally don’t charge money for all services. The free medical clinic, for example, can survive if segments of society — donors, government agencies, etc. — are willing to pay. Developing Your Mission Statement Use the mission statement to define your business concept. A company mission...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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