1. Develop a Business Plan
3.1 Why a Business Plan is Important
3.2 What Goes into a Business Plan?
3.3 How to Create an Effective Business Plan

2. Lesson 3.1 Why a Business Plan is Important
Goals
Explain the purpose of writing a good business plan.
Describe the importance of a business plan.
Chapter 3

3. Look before you leap
Read the section titled, “Look before you leap” on page 66. Answer the following questions:
What do you think are Tony’s chances for success?
What advice would you have given Tony if he had talked to you about his idea first?
Chapter 1

4. The Business Plan business plan
a written document that describes all the steps necessary for ____________ and ____________ a successful business
Chapter 3

5. A business plan will describe your:
products
manufacturing methods
___________________
management
suppliers
competitive strategies
how business will earn a profit
______________________________
Chapter 1

6. The Business Plan
Writing a business plan is one of the most difficult and important things you will do as an entrepreneur.
A business plan can make or break your business
Potential _____________ or lenders want to see evidence of a well-thought-out plan
Will serve as a guide
Chapter 1

7. Purposes of a Business Plan
explains the ______ behind your business
sets specific objectives and how your business will achieve them
describes the experience of the people who will run the business
Chapter 3

8. Purposes of a Business Plan
Explains the idea behind your business
How your product or service will be ______________ and sold
New product, better product, or less expensive product
Identify target customers, obtain customers, and keep customers
Chapter 1

9. Purposes of a Business Plan
Sets specific objectives and describes how your business expects to achieve them
_____________ for short term (first year), medium term (two to five years after startup), and long term (five years)
Description of products to be introduced over the next five years and future business plans
Chapter 1

10. Purposes of a Business Plan
Describes the background and experiences of the ________________
If you provide good information on the background and experiences of leadership team, investors will be more likely to provide funding
Chapter 1

11. What are the three main purposes of a business plan?
Chapter 1

12. Importance of a Business Plan
makes you think about all aspects of your business
may help you secure _______________
helps you ______________ your ideas to others
can serve as a tool for managing your business
Chapter 3

13. Importance of a Business Plan
Makes you think about all aspects of your business
Will help you during the _____________ and startup phases
Working on a business plan can help you think through business strategies, recognize limits, and identify problems you might encounter
Chapter 1

14. Importance of a Business Plan
May help you secure financing for your business
Lenders and investors require a business plan before they will consider financing a business
A well-written business plan shows lenders and investors that you are ___________ about your business idea
Chapter 1

15. Importance of a Business Plan
Helps you communicate your ideas to others
If you communicate your ideas well on paper, you will also convince readers that your business can succeed
Will give suppliers confidence in extending ____________ to your company
Chapter 1

16. Importance of a Business Plan
Can serve as a tool for managing your business
Once your business is up and running, you can use the business plan in your _______
_______________
You can refer back to the plan to make sure you are following strategies, etc.
Chapter 1

17. Why is a business plan important to an entrepreneur?
Chapter 1

18. 3.1 Assessment
Directions: Read “famous entrepreneur” on page 69 (Walt Disney). Answer the two Think Critically questions. Type the questions and bold your answers. Next, answer the 3.1 assessment questions on page 70. Type the questions and bold your answers. Save your work as Chapter 3 assessment.
Chapter 1