Business and Personal Finance © 2007

Chapter 17: Developing a Business Plan

Chapter Summaries

• One of the measures of success for a business is the amount of profit it earns. Businesses must do two things to survive: operate at a profit with effective financial management and attract customers.
• The components of a business plan include: executive summary, mission statement, company description, product and service plan, management team plan, industry overview, market analysis, competitive analysis, marketing plan, operational plan, organizational plan, financial plan, growth plan, contingency plan, and supporting documents-plus a cover page, title page, and table of contents. The three basic parts of a business plan focus on a strategic plan, a marketing plan, and a financial plan.
• The financial plan identifies the assets you need, how you will acquire these assets, and how you will handle daily financial operations.
• Accounting is the systematic process of recording and reporting a business's financial position, including all transactions involving money.
• Accounting functions include the preparation of financial statements, auditing, budgeting, payroll, inventory, cash flow, and investments.