Test your basic knowledge |

Business Plan Basics

Subject : business-skills
Instructions:
  • Answer 22 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Word of mouth and social media - promotions & Tradeshows - direct sales - advertising






2. In what industry will you compete? - who are you competitors within that industry? in other industries? - what is the market (geographic/demographic scope) - who actually pays?






3. This is you abstract for you proposition - it must be GREAT because it may be all that people read - The mission statement - quick understanding of the proposal - capture people's interest in the business






4. Describes how you will deliver your value proposition - emphasize how your plan will result in superior value and/or lower costs than competitors - better/cheaper access to inputs - better/cheaper access to labor capital - a favorable geographical l






5. Who are the competitors? (direct and indirect) - what differentiates you product or services from you competition? - how much of a threat are your competitors to venture?






6. Characterize the 'pain' in the market - review your marketing/sales milestones - characterize buyer preferences - routines and favored distribution channels - determine value of each customer






7. Provide a realistic picture of the business venture - current status of your business - who you are trying to help - the business you are creating - the offering(s) you'll sell - what the product is - what is the structure of your busine






8. Advantages in sourcing materials - discover cheaper transporting methods - technological innovations in the manufacturing or distribution process - can lower costs or increase productivity - a favorable geographical location - closer to customers






9. Describe each member of the management team - Where have they worked? - what is their track record and reputation? - what knowledge - skills - and abilities do they possess? - how committed are they - do they have 'skin in the game'? - Describe






10. The capital requirements of the business - financial projections - breakeven analysis - key assumptions - contingencies & probabilities - financial returns - business valuation






11. Who will read this? - what do you want them to know? - what do you want them to do?






12. How much you will spend - how much you will make - how quickly earnings - the capital requirements of the business - financial projections - breakeven analysis - key assumptions - contingencies & probabilities - financial returns - business valuation






13. Do your research - concept - opportunity - competitive landscape - keys to success - people involved






14. Example: Detailed financials (summaries are in main document) - expected milestones timeline (or in main document) - pictures of prototypes - plans - etc - documentation of intellectual property - letters from potential supplies - distributors






15. Have a clean - professional appearance - include the name of the business or project - give you name and contact info - display the company logo or emblem






16. What are the products or services produced by the industry? - how big is the industry and where are the primary 'clusters' of participants? - what trends exist? - what barriers to entry prevent competition?






17. The problem (pain) and the solution (painkiller) you offer - The context - market - industry - competitors - The business opportunity (size - timing - sustainability) - how will you capitalize on the opportunity (business model) - th






18. How big is the overall market? - to what extent is the market growing? - what is your 'addressable' target market? - why would this market prefer you solution?






19. Products - focus on benefits - not features - Price - single - tiered - volume (based on cost - plus - supply & demand - etc) - Placement - distribution channels and alliances - Promotion - how will customers learn?

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20. Cover page - table of contents - executive summary - business description - business enviornmemt - industry background - competitive analysis - market analysis - marketing plan - operations plan - management summary - financial






21. Compare long - term benefits vs. cost of customer acquisition to determine value






22. Market research (primary and secondary) - industry research - competitor analysis - relevant cost/financial data