A Quick Business Plan Quiz 1. A comprehensive written Business plan is only needed if you are seeking funding? [ ] True [ ] False 2. A written Business Plan is obsolete today when all that’s really needed is a solid marketing plan? [ ] True [ ] False 3. One of the major reasons business plans never get written is most business owners don’t know how to get started? [ ] True [ ] False 4. The most difficult section of a business plan for most people to complete is the financial section? [ ] True [ ] False 5. The first section any lending officer or investor will look at is the financial section? [ ] True [ ] False 6. According to Venture Capitalists, the single most important part of a business plan and one they most likely will make a positive decision on is: (a) Marketing summary (b) Financials (c) Management summary (d) Executive summary Answer_______ 7. Business plans are written only for the more complicated businesses? [ ] True [ ] False 8. List here your biggest obstacle to completing a business plan for your business: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ____________________________ Answers: 1. False. If you are about to enter business, a business plan is a must. It will be your roadmap to success. It will not only allow you to set clear objectives and strategies, but help you determine your financial and marketing requirements and how you will go about getting customers and keeping them.. For existing businesses it’s not only important for funds but for employees who need to know the direction and objectives of the company. 2. False. There are just as many people who decide NOT to go into business after they have written a plan, than do. Why? They determined they do not have enough funds to get started or the concept or idea or product needs more work or they lack the management experience required to make this business work. 3. True. Most people do not know where to start to write a business plan or lack the writing skills. By doing your homework, getting counseling and attending low cost workshops, anyone can develop a business plan. 4. True. Most people think they have to be a CPA or accountant to complete the financial section of their plan. If math is not your thing, find a financial person to help you put your financial section tougher. It’s important that you be with that person when it gets done so you understand the elements. 5. False. Most qualified lenders and investors will look at the executive summary first, so it better be concise and have all the information within two or three pages at most. (The company, products and services, objectives; keys to success; marketing summary, management summary, financial summary, money needed and for what purpose. 6. (C) Who are going to run the company, the team pulled together and their expertise and experience are keys. 7. False. Every business should have a written business plan whether it be an informal plan or formal one. 8. After you listed your biggest obstacle to completing your business plan…write out an action plan of how you are going to overcome that challenge….utilize all the free resources for help you have at your disposal (The SBA; SCORE; the SBDC, WEV) A caution: If purchasing a business plan on-line or from a consultant, be sure you fully understand it and how it was compiled and key factors from within so you can answer every single question that may be asked of you. To test your own business plan, list all the possible questions that will be asked of it….and be sure you have the answers Sign-up now for Mike’s small business library for some great business plan guidelines and hints.