Overview of the Business Plan

These flashcards provide key terms and definitions related to the business planning process, essential for understanding entrepreneurship principles.

Business Plan

A document that explains the Who, What, Why, When & How of a proposed or new business.

Purpose of the Business Plan

To examine the business objectively, identify strengths and weaknesses, predict issues, and guide operations.

Executive Summary

A succinct highlight of the overall business plan, written last but located at the front.

SWOT Analysis

A technique for assessing Strengths, Weaknesses, Opportunities, and Threats in business.

PESTLE Analysis

An environmental analysis tool that examines Political, Economic, Social, Technological, Legal, and Environmental factors.

Market Opportunity

Identifying a gap in the market that the business intends to fill, supported by industry analysis.

Competitive Strategies

Strategies developed by Michael Porter, including cost leadership, differentiation, and focus/niche marketing.

Milestone

Major achievements in the business plan that mark progress, such as prototype development or first operating profit.

Financials

A section detailing revenue, expenses, cash flow, and profitability projections of the business.

Exit Strategy

A plan for how to capitalize on investment return, including options such as IPO, acquisition, or merger.