1.01 Nature of Business Plans
What is a business plan?
A written document outlining a company's goals, strategies, and financial projections.
What is an organizational plan?
A document outlining the structure, roles, and responsibilities within a business.
What is business ethics?
Moral principles that guide business decisions and behavior.
What is an external resource for an entrepreneur?
A tool, organization, or individual that provides guidance, funding, or expertise to a business.
In what way can a startup business benefit from writing a business plan?
Define managers’ roles
Name two key sections found in a business plan.
Executive summary, market analysis, company description, financial projections, table of contents, company history, product(s) offered, etc.
What is the main role of staff in an organization?
Employees who carry out daily business operations to help achieve company goals.
What is puffery?
Exaggerated advertising claims that cannot be proven.
What is the government agency that helps beginning businesses?
The Small Business Administration
What is the main purpose of the financial projections section in a business plan?
To predict revenue, expenses, and profits over time
What section of a business plan explains the target customers and their needs?
Market Analysis
What is the difference between a flat and tall organizational structure?
A flat structure has fewer management levels and promotes open communication, while a tall structure has multiple levels with a clear chain of command.
What is an example of copyright infringement?
Using someone else’s logo, music, or written content without permission.
How can a mentor help an entrepreneur?
By providing guidance, advice, and industry experience.
What is a key advantage of a flat organizational structure?
It allows for faster decision-making and communication
What business plans used for?
To secure funding and/or to help guide decision making and strategy.
Which type of business is more likely to use a flat organizational structure: a startup or a large corporation?
A startup, because it has fewer employees and a need for flexible decision-making.
What is nepotism, and why is it considered unethical?
Favoring family members/people with a personal connection for jobs or promotions over more qualified candidates. It is unfair and reduces workplace morale.
How can market research be considered an external resource for a business?
Market research is an external resource as it provides valuable information about industry trends, customer preferences, and competition.
Andrew exaggerated his company’s anticipated year-one income to entice a potential business investor. In other words, Andrew committed
Puffery.
What is the difference between a lean canvas business model and a traditional business plan?
A lean business plan is shorter and focuses on key aspects, while a traditional plan is more detailed and comprehensive.
How does a strong organizational plan contribute to business success?
It ensures efficient workflow, defines clear roles, and improves productivity and communication.
What are two ways companies can promote ethical business practices?
Creating a code of ethics, providing ethics training, having whistleblower protections, etc.
How do financial institutions serve as external resources for entrepreneurs?
Financial institutions serve as external resources by offering loans, credit, and financial advice to help entrepreneurs manage their finances and grow their businesses.
What is the primary role of local economic development offices?
To provide new businesses with training, mentorship, and resources.