Exam 6: Creating Business Plans

An overview of the significant points of a business plan appear in the

Ideally, investors like a business plan that shows evidence of

The marketing plan should identify user benefits and show evidence of consumer interest.

For David Gumpert the business plan is essentially a selling document.

Business plans should seldom exceed 40 pages in length.

Investors who read business plans can be described as

In considering the content of a business plan, an entrepreneur should think first and foremost about

Incubator organizations can provide advice on structuring a new business.

The executive summary in a business plan should come

Which of the following is not one of the basic objectives of the business plan?

One of the primary functions of a business plan is to serve as a selling document-convincing key individuals that the venture has real potential.

A potential investor's single goal is to

If Tom is planning a new business but has limited time to capitalize on an opportunity the best business plan would be a ____.

The Financial Plan section of a business plan should include balance sheets and income statements on an annual basis and cash flow statements on a monthly basis, all projected out 2-3 years.

Once the decision is made to prepare a business plan it should always be a comprehensive plan.

In a business plan, the legal form of organization would be discussed in the

Because they have personal resources at risk, prospective investors tend to look carefully at the business plans they receive.

The executive summary is often the most important section of the business plan.

You Make the Call-Situation 3 John Martin and John Rose decided to start a new business to manufacture noncarbonated soft drinks. They believed that their location in East Texas, close to high quality water, would give them a competitive edge. Although Martin and Rose had never worked together, Martin had 17 years of experience in the soft drink industry. Rose had recently sold his firm and had funds to help finance the venture; however, the partners needed to raise additional money from outside investors. Both men were excited about the opportunity and spent almost 18 months developing their business plan. The first paragraph of their executive summary reflected their excitement: The "New Age" beverage market is the result of a spectacular boom in demand for drinks with nutritional value from environmentally safe ingredients and waters that come from deep, clear springs free of chemicals and pollutants. Argon Beverage Corporation will produce and market a full line of sparkling fruit drinks, flavored waters, and sports drinks that are of the highest quality and purity. These drinks have the same delicious taste appeal as soft drinks while using the most healthful fruit juices, natural sugars, and the purest spring water, the hallmark of the "New Age" drink market. With the help of a well-developed plan, the two men were successful in raising the necessary capital to begin their business. They leased facilities and started production. However, after almost two years, the plan's goals were not being met. There were cost overruns, and profits were not nearly up to expectations.

A business plan is a written document that sets out the basic idea underlying a business and its related startup considerations.