Business Plan Components
Written Outline of the goals and the steps to take to achieve them
The Strategic Plan
Property or items of value owned by a business
Assets
Activity that has an effect on the financial situation of a business
Transaction
This may be needed in order to purchase new equipment, relocate the business, or sell a new line of merchandise
Reserve cash
Written Outline of how business will be promoted to increase customers and sales
Marketing Plan
Goals expected to reach in 1-2 years
Short Term Goals
Method that is used to acquire or purchase items
Purchasing Assets
Accountants must use these standards when reporting or recording financial decisions
Generally Accepted Accounting Principles (GAAP)
Sum of people's skills, abilities, health, knowledge, and motivation
Human Capital
Promotional Activities include what two things
Advertising
Promotions
Goals that may take 3 or more years to reach
Long Term Goals
Thousands of business close every year due to
Poor financial decisions
Formal written statement of expected income an expenses for a future period of time
Budget
Resources used to produce goods and services
Capital Goods
Paid Message that a business sends about its products
Advertising
An economic system in which people can choose what they buy, what they produce and sell, and where they work
Free Enterprise System
Recording, Summarizing, Reporting, and Analyzing of your business's finances
Daily Financial Operations
Largest Asset of many businesses
Inventory
True or False: A business may choose to pay for an employee to further their education in a related field
True
Form of communication a business uses to inform, persuade, or remind people about its products or to enhance its image
Promotion
Large and Small Businesses must do two things in order to survive
Operate at a Profit with effective management
Attract and keep people who will run the business
3 Aspects to a Financial Plan
Assets Needed
Purchasing Methods
Daily Financial Operations
Largest Expense for a business and is regulated by state and federal to be prepared accordingly to generally accepted accounting principles (GAAP)
payroll
Areas in which a business can invest
Human Capital
Capital Goods
technology
Steps to Prepare a Marketing Plan
Assess the competition
Identify services offered
Research current pricing and advertising
Identify potential customers