BUS305 Study Guide
Unit 3: The Business Plan
3a. Explain how to write a formalized business plan
1. The business plan should demonstrate an entrepreneur's preparedness to establish an enterprise, knowledge of the product/service and the business environment, and the ability to communicate the business opportunity to potential investors.
- What are the elements of the ten-ten approach?
- How can business plan templates be customized for your needs?
- How comfortable do you feel with the mechanics of writing a business plan?
- Can you present a business plan in the most effective way possible?
To review, see Developing a Business Plan.
2. The physical appearance and organization of the business plan influence how readers perceive and evaluate the plan's effectiveness. In addition to a cover page and a table of contents, sections of the plan include an executive summary, company overview, industry- or market-analysis, marketing strategy, operations, financials, and implementation strategies. Not all fonts are appropriate for a professional document, and it is, of course, all too easy to mischaracterize facts and figures by presenting them in an inappropriate format.
- Why are plain fonts, plain language, and proper margin settings vital to an attractively written report?
- What are the proper charts and graphs for illustrating different kinds of facts and statistics?
To review, see Ten Dos and Don'ts of Writing a Business Plan and How to Write a Business Plan.
3b. Identify the information found in the business plan
1. Including the proper information in a business plan demonstrates your professionalism and commitment to your enterprise. Most importantly, however, it helps your business plan make a more persuasive case to potential investors.
The components of the SWOT analysis are strengths, weaknesses, opportunities, and threats. You may want to try performing a SWOT analysis for a real-world company to practice using this business tool.
- What information should appear in the executive summary?
- What is the market analysis section? Why does it include information about trends, consumer segments, the competition, and industry growth?
- How does the business plan attract investors in the financial analysis section?
- How does the marketing plan support the overall business plan?
- What is the purpose of the mission statement? Why should it mention the enterprise's goals and corporate philosophy?
To review, see:
- Small Business Plan Outline
- Business Plan Template
- How to Write an Executive Summary
- How to Write a Mission Statement for Your Business
- Product or Service Description
- Marketing Plan, Strategies, Distribution, and Channels
2. The management structure of an organization determines how the organization will be run and who will be responsible for management activities.
- What are the features of each of the generally-accepted management models: classic hierarchy, democratic hierarchy, collaborative management, and collective management?
To review, see Developing a Management Plan.
Unit 3 Vocabulary
This vocabulary list includes terms that might help you answer some of the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.
- Acronyms
- Business model
- Business plan
- Competition
- Demographics
- Executive Summary
- Financial analysis
- Fonts
- Format
- Graphs
- Implementation
- Investors
- Jargon
- Management
- Management models
- Management team
- Market analysis
- Market segments
- Mission Statement
- Product
- Strategy
- SWOT analysis
- Template
- Ten-ten approach
- Text