The Importance of a Business Plan Many people eager to start a small business come up with an idea and begin discussing it with professors, friends, and other businesspeople. At this stage the entrepreneur needs a business plan A business plan is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s). A business plan forces potential small-business owners to be quite specific about the products or services they intend to offer. They must analyze the competition, calculate how much money they need to start, and cover other details of operation. A business plan is also mandatory for talking with bankers or other investors. Match each part of a business plan with the appropriate person, based on the descriptions. Financial plan Marketing plan Appendix Management team Executive summary Location analysis 7 Manufacturing plan Company Capital required 10 Cover letter background
Match each of the options above to the items below. Artemio: Artemio used this section of his business plan to detail his forecasted revenue over the first half-decade of operations, as well as the amount of funding already committed by investors. Chipper: Chipper used this section of his business plan to provide additional information on the recipe Web business he has created. He included background industry information, marketing research, and data supporting the overall size of the market. Gabriela: Gabriela used this section to indicate the total amount of funding she needs to continue operations in her design firm. It also includes an exciting new plan for how she plans to use these resources. Jared: When creating his business plan, Jared used this section to summarize the most attractive points of his project in as few words as possible. Melissa: Melissa is planning to open a new shopping center. She used this section of her business plan to detail the traffic and demographics of the area. Omar: Omar came up with a great new idea for a computer processor. He used this section of his business plan to detail how he will produce his product. Rob: When putting together his business plan, Rob spent a great deal of time and energy doing a S. W.O. T. analysis, and he used this section to detail sales forecasts, promotion plans, and all scheduled advertising plans.
Sean: Sean used this section to describe his business's historical operations and all financial information, and he disclosed the fact that there was a lawsuit pending against his business Sydney: Sydney created a two-page overview of her proposed salon. Here, she briefly described her concept for the business and discussed her major goals and objectives. Tamika: Tamika used this section to fully describe the way she planned to organize the leadership team of her new consulting firm.