THE ENTREPRENEURIAL MIND

LEARNING MATERIAL
(SUMMER- FINAL)

MICHAEL JEFF IBAY LEONG, LPT

Instructor
 1. What is a business plan?
A written document describing the nature of the business, the sales and marketing strategy, and
the financial background, and containing a projected profit and loss statement

2. What is a business proposal?

A business proposal is a document that’s designed to persuade an organization to buy a product
or service.

A proposal is usually solicited or unsolicited – meaning, that the purchasing company is either
actively seeking proposals that meet a specific need or is reacting to an offer, often from a sales
person, to consider a proposal. For example, an unsolicited proposal might result from a dinner
conversation at a trade show where the seller tells a prospect that he has a solution to the
prospect’s problem, and says, “Would you like me to submit a proposal for that?”

RESEARCH THE DEFINITION OF THE FOLLOWING PARTS IN MAKING A BUSINESS

PLAN.
1. Introduction
The introduction should contain a two or three page management overview of the
business. It covers the description of the business, the goals and why the business is a
good venture to start. The introduction in a business plan should take all the parts of
the business plan and summarize them quickly
2. Business Logo
An effective logo should have a design that conveys your brand personality, a
style choice consistent with your identity, your business name, and a relevant
color choice.
A logo is much more than just an image; it is a point of recognition for clients and
an important foundation for the branding of your company. A well-
designed logo is an easy way to convey to potential customers that
your business is professional, trustworthy, and provides quality goods or services.
3. Business Goals
Part of the planning process, business goals describe what a company expects to
accomplish over a specific period of time.

• Mission
A mission statement is a simple statement that explains your company's goals. It's
a summary of what your company does for its customers, employees, and owners.
It explains how you do what you do. And, it focuses on why your company does
what it does.
 • Vision
A vision is a vivid mental image of what you want your business to be at some
point in the future, based on your goals and aspirations. A vision statement
captures, in writing, the essence of where you want to take your business, and can
inspire you and your staff to reach your goals.

• Objectives
Business objectives are the specific and measurable results companies hope to
maintain as their organization grows. Business objectives act as a compass for the
company, dictating how the organization should allocate strengths, weaknesses
and opportunities that may be available.

4. Business Address
The address at which a business is located. Address the place where a person or
organization can be found or communicated with.

5. Nature of Business
Businesses vary in size, as measured by the number of employees or by sales
volume. Usually, when filling out some kind of form, "nature of business" refers
to the type or general category of business or commerce you are describing.

6. Name of Owner/s
A person who owns something : one who has the legal or rightful title to
something : one to whom property belongs business/property owners He and his
sister are owners of the restaurant.

7. Brief Description of Business

The business description usually begins with a short description of the industry. When
describing the industry, discuss the present outlook as well as future possibilities. You
should also provide information on all the various markets within the industry, including
any new products or developments that will benefit or adversely affect your business.
Base all of your observations on reliable data and be sure to footnote sources of
information as appropriate.

When describing your business, the first thing you need to concentrate on is its structure.
By structure we mean the type of operation, i.e. wholesale, retail, food service,
manufacturing or service-oriented. Also state whether the business is new or already
established. In addition to structure, legal form should be reiterated once again. Detail
 whether the business is a sole proprietorship, partnership or corporation, who its principals
are, and what they will bring to the business. You should also mention who you will sell
to, how the product will be distributed, and the business's support systems. Support may
come in the form of advertising, promotions and customer service. Once you've described
the business, you need to describe the products or services you intend to market. The
product description statement should be complete enough to give the reader a clear idea of
your intentions. You may want to emphasize any unique features or variations from
concepts that can typically be found in the industry. Be specific in showing how you will
give your business a competitive edge.

MARKETING PLAN
1. Description of the Product/Service
In the product description, you need to explain what your product or service is, the
specific thrust of your plan, and the main strategies that will be used to accomplish
your objectives. The whole idea behind the product description is to make sure that
you communicate the purpose of your plan so there is a clear explanation of what
your product or service is and what you intend to do with it. When writing your
product description, you should use any support statistics from the body of your
plan. Make sure that you credit any secondary or primary sources so the reader
knows that your statistics aren't just arbitrary figures.

2. Comparison with the Product with its competitors

A Product Comparison unlike a Competitor Analysis provides a simple way to

compare product features or the product’s capabilities across multiple products. Undertaking a Product
Comparison allows you to determine if your product is on par or has more or different or better features
than your competitors’.

Step 1: Create a list of competing products Determine which products compete

directly in the same marketplace as your product. You may want to provide a
brief summary of each of these products before commencing the detailed analysis.
The summary should include a general product description, its purpose and
functionality.

Step 2: Undertake research. Just like a Competitor Analysis, Product Comparisons

require research. Use available material such as marketing collateral and the web
as the basis of your research.However, if possible you may want to purchase or
subscribe to products that you are comparing. This will give you an opportunity to
 complete the subscription or purchase process and experience the product as a
customer. Using the product will give you the ability to test the product features
and determine if the features are useful, a hinderance or just nice to haves.
Depending on the type of product, you may want to grab a few images and or record
the use of the product. Its good to refer to the visuals time and time again to ensure
that you’ve understood the detailed functions of the product.

Step 3: Create a Product Comparison table There are different types of Product
Comparison tables that you can use to evaluate one product from another.
Qualitative Product Comparison table. Quantitative Product Comparison table
Product Comparison checklist. The Qualitative Product Comparison table
compares products in a rudimentary way. The features of each product for each
competitor are listed and compared. The “best” product feature receives a score of
1, while the other products receive a score of 0. The Product Manager’s role is to
list the feature and assign the score. The win/loss score is subsequently tallied to
determine which product has the most “winning” features.The Quantitative Product
Comparison table has more depth than the Qualitative Product Comparison table.
Each feature listed in the table for each competitor is assigned a weight (by the
Product Manager) designating its relative importance. Scores from 1 to 10 are given
to each product (by the Product Manager) at the feature level. The total score is
tallied by summing the results of each weight multiplied by the score.The Product
Comparison checklist simply lists each feature and determines which product has
this feature.

Step 4: Conclusion So now that you’ve got a good understanding of your

competitors’ product features, you’ll need to establish and present a conclusion.
Part of your conclusion should determine if your product requires additional
features. Be mindful not to simply add features because your competitor’s product
has more features than your product. Its still important to consider product features
in light of your customers’ needs.

3. Location

Being in the right location is a key ingredient in a business's success. If a company selects
the wrong location, it may have adequate access to customers, workers, transportation,
materials, and so on. Consequently, location often plays a significant role in a company's
profit and overall success. A location strategy is a plan for obtaining the optimal location
 for a company by identifying company needs and objectives, and searching for locations
with offerings that are compatible with these needs and objectives. Generally, this means
the firm will attempt to maximize opportunity while minimizing costs and risks.
A company's location strategy should conform with, and be part of, its overall corporate
strategy. Hence, if a company strives to become a global leader in telecommunications
equipment, for example, it must consider establishing plants and warehouses in regions
that are consistent with its strategy and that are optimally located to serve its global
customers. A company's executives and managers often develop location strategies, but
they may select consultants (or economic development groups) to undertake the task of
developing a location strategy, or at least to assist in the process, especially if they have
little experience in selecting locations.

4. Market Area
A market area analysis is a quantitative and qualitative assessment of a market. It looks
into the size of the market both in volume and in value, the various customer segments and
buying patterns, the competition, and the economic environment in terms of barriers to
entry and regulation.
The area concept of the market is related to exchange concept. This emphasis on free
association between buyers and sellers to fix the price of goods for buying and selling.
But fixation of price implies in the certain area from a free interaction between demand
and supply

5. Main Customers
Knowing your customers is an essential part of business planning. The more you know about
your customers, the more you know about where to find others just like them, how to reach them
with media or other marketing communications, and what kinds of messages, offers, and
incentives move them toward buying.

Businesses that aim to serve everyone face a budget-breaking proposition. By defining your
customers by location, descriptive facts, lifestyle characteristics, and purchase behaviors, you
compile the information necessary to target your business efforts to and only to the precise
audience for your offerings. As you profile your customers, four terms apply:

• Geographics: This term describes where your customers and your potential customers —
or prospects — reside. When you know this information, you can target your marketing
efforts into specific regions, counties, states, countries, or zip codes.

• Demographics: This term describes who your prospects are in factual terms, such as age,
gender, ethnicity, education level, marital status, sexual orientation, income level, and
household size.
 • Psychographics: This term describes lifestyle characteristics, including attitudes, beliefs,
and opinions that affect customer-purchasing patterns.

• Behavioral patterns: This term describes how customers buy, including when, why, how
much, and how often they buy, their level of loyalty, their purchase occasions and timing,
and whether they make buying decisions based on price or quality, on impulse or after
careful consideration, based on personal decisions or on the recommendation of others,
and other such behavioral patterns.

6. Total Demand
Is the number of units demanded by the total number of customers in the market. Thus,
the more popular a company is, the more will be the market demand for its product and
the more will be the number of units demanded by the customers in the market.

Examples of Market Demand

Go to any mall or any store and you will see demand in action. A store which sells 1000 soaps
daily, has a demand of 1000 soaps. But on weekends, when the number of shoppers increases,
the demand might be 1200. This is just the demand of one store. The demand will be completed
irrespective of the brand of soap available because it is a necessary commodity. So any brand not
meeting the demand will see a loss of revenue.

7. Market Share
Market share is the percent of total sales in an industry generated by a particular
company. Market share is calculated by taking the company's sales over the period and
dividing it by the total sales of the industry over the same period. This metric is used to
give a general idea of the size of a company in relation to its market and its competitors.

Example of Market Share

If a company sold $100 million in tractors last year domestically, and the total amount of tractors
sold in the U.S. was $200 million, the company's U.S. market share for tractors would be 50%.

8. Promotional Measures
Promotion is an attempt by marketers to inform, persuade, or remind consumers and B2B
users to influence their opinion or elicit a response. Most firms use some form
of promotion. Because company goals vary widely, so do promotional strategies.
 9. Selling Price
The selling price is the amount a buyer pays for a product or service. Selling price can
also be known as market price, list price, or standard price. And the following factors
help organizations determine the selling price of its products: The price a buyer is willing
to pay. The price a seller is willing to accept.

10. Marketing Budget

A marketing budget outlines all the money a business intends to spend on marketing-
related projects over the quarter or year. Marketing budgets can include expenses such as
paid advertising, sponsored web content, new marketing staff, a registered blog domain,
and marketing automation software.

11. Marketing Strategy

A marketing strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of the products or services
the business provides.

ORGANIZATION and MANAGEMENT PLAN

1. Form of Business
1. Sole proprietorship
The vast majority of small businesses start out as sole proprietorships. These businesses are owned
by one person, usually, the individual who has day-to-day responsibility for running the business.
Sole proprietors can be independent contractors, freelancers or home-based businesses.

2. Partnerships
In a Partnership, two or more people share ownership of a single business. Like proprietorships,
the law does not distinguish between the business and its owners. The partners should have a legal
agreement that sets forth how decisions will be made, profits will be shared, disputes will be
resolved, how future partners will be admitted to the partnership, how partners can be bought out
or what steps will be taken to dissolve the partnership when needed

3. Corporations
A corporation is considered by law to be a unique entity, separate from those who own it. A
corporation can be taxed, sued and enter into contractual agreements. The corporation has a life of
its own and does not dissolve when ownership changes.

There are three types of corporations: C-corporation, S-corporation and Limited Liability
Company.
 • C-corporation
A C-corporation is a corporation that is taxed separately from its owners. It gives the owners
limited liability encouraging more risk-taking and potential investment.

• S-Corporation
An s corporation also known as subchapter S-corporation offers limited liability to the owners. S-
corporations do not pay income taxes rather the earnings and profits are treated as distributions.
The shareholders must report their income on their individual income tax returns.

• Limited Liability Company

A limited liability company or LLC is a hybrid business structure that provides the limited legal
liability of a corporation and the operational flexibility of a partnership or sole proprietorship.
However, the formation is more complex and formal than that of a general partnership.

2. Organization Structure
Functional Structure
This is also referred to as a bureaucratic organizational structure and breaks up a company based
on the specialization of its workforce. Most small-to-medium-sized businesses implement a
functional structure. Dividing the firm into departments consisting of marketing, sales, and
operations is the act of using a bureaucratic organizational structure

Divisional or Multidivisional Structure

The second type is common among large companies with many business units. Called the
divisional or multidivisional structure, a company that uses this method structures its leadership
team based on the products, projects, or subsidiaries they operate.

Flatarchy Structure

Flatarchy, a newer structure, is the third type and is used among many startups. As the name
alludes, it flattens the hierarchy and chain of command and gives its employees a lot of autonomy.
Companies that use this type of structure have a high speed of implementation

Matrix Structure

The fourth and final organizational structure is a matrix structure. It is also the most confusing and
the least used. This structure matrixes employees across different superiors, divisions, or
departments. An employee working for a matrixed company, for example, may have duties in both
sales and customer service.
 3. Organization Chart
Organizational Chart Definition

Organizational charts (or hierarchy charts) are the graphical representation of an organization’s
structure. Its purpose is to illustrate the reporting relationships and chains of command within the
organization. Employee names and titles and/or job positions are generally depicted in boxes or
circles with lines linking them to other employees and departments. By looking at the company
organizational chart, people can gain a quick understanding of how the organization is designed,
its number of levels, and where each employee fits into the organization.

Purpose of Organizational Charts

In the past, organizational charts have been used primarily by Human Resources, business leaders
and new hires. HR is often responsible for maintaining the org chart by updating it with new hires
and when employees change positions or leave the company. When other business units need the
org chart, they know who to go to. Business leaders use the organizational chart in several
instances, such as for presentations, to justify adding or reducing headcount, and to determine
where an employee might have the opportunity to shift job roles.

TYPES OF ORGANIZATIONAL CHARTS

1. Hierarchical Organizational Chart

This is the most common type, and it gives rise to the synonym Hierarchy Chart. A hierarchy is
where one group or person is at the top, while those with less power are beneath them, in the shape
of a pyramid. Think of a monarchy with a king or queen at the top, or an organization with the
CEO at the top. With a hierarchy, members typically communicate with the person they report to
and anyone who reports directly to them.

2. Matrix Organizational Chart

This is usually only seen when individuals have more than one manager. For example, an
organization could have a team of graphic designers who all report to the head graphic designer.
The graphic designers are also working on other projects that are likely headed by a separate
project manager. In this case, the graphic designers will have two managers.

3. Flat Organizational Chart

This type, sometimes referred to as a Horizontal Org Chart, has little or no levels of middle
management and typically consists of two levels: the top administrators and the workers. In
companies like this, the workers have more responsibility and are more directly involved in
decision-making.
 4. Business Experience and Qualifications of the Entrepreneur
Having business experience means you know your sector intimately. Experienced entrepreneurs
understand the changing trends and demands in their respective industries. This knowledge
directly leads to developing efficient products that resonate with the target audience. HWY Pro is
a prime example of a product that highly appeals to the target audience because the developer
used his experience to perfect it. Therefore, don’t underestimate the power of business
experience. In fact, relish in it. Don’t forgo gaining new business experiences for anything else.
Because without it, entrepreneurs won’t be able to aspire too much. Qualifications for the
entrepreneur Qualifications in entrepreneurship Suitable qualifications for an entrepreneur
include: an entrepreneur’s vocational qualification, the aim of which is to strengthen the
entrepreneur’s business skills. The qualification is also suitable for entrepreneurs who have
already been working as such for a long time, and want to redirect their business. a special
vocational qualification in business management, which is suitable for those seeking to grow and
expand their business a special vocational qualification for a product developer, which is meant
for developers of products, services or processes Qualifications in your own vocational field
There are more than 350 different basic-, vocational and special vocational qualifications to
choose from in different fields. They are aimed at the development and updating of skills in your
own vocational field. Other shorter additional training Non-qualification-based training is shorter
in duration (4-12 months), deepens and expands vocational skill and allows the student to
acquire special expertise. You can find out more about apprenticeship training in your own area
by looking at the website of your local apprenticeship office.

5. Pre-Operating Expenses
Pre-operating costs include any expenses incurred during the startup or formation of a new
business. They include expenses related to the investigation of a potential new business, as well
as the actual costs associated with forming or registering the company.

6. Pre-Operating Activities
Operating activities are the functions of a business directly related to providing its goods and/or
services to the market. These are the company's core business activities, such as manufacturing,
distributing, marketing, and selling a product or service. Operating activities will generally
provide the majority of a company’s cash flow and largely determine whether it is profitable.
Some common operating activities include cash receipts from goods sold, payments to
employees, taxes, and payments to suppliers. These activities can be found on a company's
financial statements and in particular the income statement and cash flow statement.
PRODUCTION PLAN
1. Product Specification
A product specification (also referred to as “product specs”) is a document with a set of
requirements that provides product teams the information they need to build out new features or
functionality. A good product spec doesn’t micro-manage product development. Rather, it gives
them relevant context about users, business needs and other criteria to help them make informed
decisions as they design and build a solution. What goes into a product specification? Product
specs don’t have be long or overly technical. In fact, the most effective product specs are actually
pretty brief. You know your product spec has done its job when it answers the following
questions: What are we building and why? What should the final build achieve? How do we
measure success? You can start building a product spec from the moment you have an idea and
keep building on it until you push it over to product development.

2. Raw Materials
Raw materials are materials or substances used in the primary production or manufacturing of
goods. Raw materials are commodities that are bought and sold on commodities exchanges
worldwide. Traders buy and sell raw materials in what is called the factor market because raw
materials are factors of production as are labor and capital. Raw materials are used in a multitude
of products. They can take many different forms. The kind of raw materials inventory a company
needs will depend on the type of manufacturing they do. For manufacturing companies, raw
materials inventory requires detailed budgeting and a special framework for accounting on the
balance sheet and income statement. When a company uses raw materials inventory in
production, it transfers them from the raw materials inventory to the work-in-process inventory.
When a company completes its work-in-process items, it adds the finished items to the finished
goods inventory, making them ready for sale.

3. Process Flow Chart

A process flowchart is a graphical representation of a business process through a flowchart. It’s
used as a means of getting a top-down understanding of how a process works, what steps it
consists of, what events change outcomes, and so on. Flowcharts, on the other hand, are a means
of visualizing the process. Process flowcharts are an essential part of business process mapping.
They help visualize your processes, making them significantly easier to fully comprehend.

4. Plant Size
A ‘plant’ means an establishment of the manufacturing of goods. It represents a production unit
where the due provision of all the activities facilitating the production process as made. And the
term’ size of business’ refers to the scale of organization and operations of a business enterprise.
 5. Store Equipment
means all convenience store fixtures, machinery, furniture, equipment, including, but not limited
to, walk-in coolers, store fixtures, counters, shelving, refrigeration equipment, cash registers,
safes, fountain dispensing equipment, coffee equipment, ice machines, tables and any other
fixtures. Most people that want to open a store have no idea what equipment is necessary, it is
hard to think about everything that is necessary so it’s important to plan in advance. As already
mentioned, you will have to accommodate your specific needs based on your industry and the
products you sell. It is quite important that you see exactly what you need. This is easier said
than done. A good place to start is to find a similar business to the retail store you will open this
are the equipment that you will likely need in your business. Business Telephone System-
Understanding what services, features, and options are available will help buy the right size
phone system for the right price for your business.

Computers and Software-The key to leveraging information to your advantage is purchasing and
implementing the right computers and software for your business. The computer is also now
essential to business communication thanks to email. Computer Network and Internet
Connection-You'll need a modem for connecting your network to the outside world, and with
that modem, you'll need Internet service from a provider.

Multifunction Printer-If it’s electronic we want to print it. If it’s somewhere else, we want to fax
it. Buying one machine to do it all can save you time and money. Smartphone-Having access to
your office email through your smartphone can offer an enormous advantage and convenience.
Keeping yourself organized and on-time not only has an economic impact but will also help you
manage the stresses in your life.

Shredder-It may be an employee’s personal information, a customer list, a client's sensitive

materials or a confidential memo. Information that you're responsible for that gets into the wrong
hands can be devastating to your company and your clients. Mailing Equipment- The proper
mailing equipment, such as scales and postage software can save your company valuable time
and money.

6. Shop Layout
Store layout/Shop Layout is the design of a store's floor space and the placement of items within
that store. Store owners choose where the best spots are to place their merchandise, and this
helps them design their customer flow, as well as the ambiance (ambiance also plays a huge role
in restaurants as well within their store.
 7. Site Location
Before you start looking for a business location, you should have a clear picture of what you
have and what you want to have in future. Coming up with that picture is a time-consuming
process, which is both tedious and exciting – but you need to give it the attention that it deserves.

Although many business mistakes can be corrected later, a bad location is sometimes impossible
to repair.

Style of Operation

Is your business going to be formal or elegant? Your location needs to be consistent with a
particular image or style. If you own a retail business, do you want a traditional store or an online
store?

Demographics

When considering demographics, you should think about two important angles. First, you should
think about who your customers are and how close they are to your location. This is critical for
some service providers and retailers but not so for other businesses. The demographic profile that
you have for your target audience will allow you to make this decision.

Secondly, you should consider your community. Is your customer base local, and does a
percentage of it support your business or match your customer profile? When choosing
communities that are largely dependent on a specific industry, you need to be careful because a
slump can be bad for business.

Foot Traffic

For many businesses, foot traffic is very important. Nobody wants to be tucked away in a corner
where potential customers will pass him/her by. On the other hand, if your business needs
confidentiality, you should opt for a low-traffic area.

Find an ideal location by monitoring the traffic outside a certain location at different times of the
day and different times of the week. Doing so is a great way of confirming whether the traffic
meets your needs.
Parking and Accessibility

Consider the accessibility of the location for every person who will be coming there. If you are
on a busy street, is it easy for cars to get in and out of your parking lot? Your facility also needs
to be accessible to people with disabilities. Which sort of deliveries are you likely to receive, and
will your suppliers be able to access the facility easily?

If you are considering an office building, ask yourself whether you need the keys for periods
when the main doors are locked. If the building closes on weekends and you would like to work
then, you should look elsewhere. Make sure that there is sufficient parking for employees and
customers.

Just as with foot traffic, you should monitor the facility and see how the parking demand
fluctuates. Moreover, you should make sure that the parking lot is adequately lit and well
maintained.

Competition

Are competing companies close by? In some instances, this can be advantageous if comparison
shopping is popular. You might end up catching the excess from nearby businesses if you are
situated near an entertainment area or restaurant. However, if you are selling CJ aviation fuel
pumps and there is a competitor nearby that sells the same thing, start looking elsewhere. When
consumers are looking for very specific products, they understand that their choices may be
limited, so they will probably only visit one location.

Site’s Image and History

What does the address say about your business? If you are targeting a local market, you should
ensure that your location reflects the picture that you want to project. It would also be a good
idea to check the history of the site and consider how it has changed over the years.Make sure
that you ask about previous tenants. If you are opening a hotel where five hotels have failed, you
will be starting with a serious handicap.

8. Utilities
Sector refers to a category of companies that provide basic amenities, such as water, sewage
services, electricity, dams, and natural gas. Although utilities earn profits, they are part of the
public service landscape and are therefore heavily regulated
 9. Waste Disposal
It is the collection, processing, and recycling or deposition of the waste materials of human
society. But in a Business plan, waste disposal is a very important element before creating a
building because it is where the waste goes.

10. Production Schedule

Is a project plan of how the production budget will be spent over a given timescale, for every
phase of a business project.

11. Direct Labor

Direct Manufacturing Labor Costs are labor costs that directly relate to manufacturing a product.
Furthermore, direct labor can be described as the labor of those people who work, either with
machines or hand tools, specifically on the raw materials to convert them into finished products.

12. Unit Product Cost

A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a
particular product or service. Unit costs are synonymous with the cost of goods sold and
the cost of sales.

Financial Plan
1. Summary of Assumption
Business assumptions or Summary of Assumptions are things that you assume to be true for the
purposes of developing a strategy, making decisions and planning. They are commonly
documented in business plans and business cases as a disclosure of uncertainty and risk. ... The
process of documenting assumptions can have value in identifying risks.

• Capital Requirement
The capital requirement is the sum of funds that your company needs to achieve its goals. Plainly
speaking: How much money do you need until your business is up and running? You can
calculate the capital requirements by adding founding expenses, investments and start-up costs
together.

• Source of Funds
The main sources of funding are retained earnings, debt capital, and equity capital. Companies
use retained earnings from business operations to expand or distribute dividends to their
shareholders. Businesses raise funds by borrowing debt privately from a bank or by going public
(issuing debt securities).
 2. Breakeven Point (BEP)
The break-even point (BEP) in economics, business—and specifically cost accounting—is the
point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and
one has "broken even", though opportunity costs have been paid and capital has received the
risk-adjusted, expected return.

3. Sales Forecast
Sales forecasting is the process of estimating future sales. Accurate sales forecasts enable
companies to make informed business decisions and predict short-term and long-term
performance. Companies can base their forecasts on past sales data, industry-wide comparisons,
and economic trends.

4. Projected Income Statement

A projected income statement shows profits and losses for a specific future period – the next
quarter or the next fiscal year, for instance. It uses the same format as a regular income
statement, but guesstimating the future rather than crunching numbers from the past. It's also
known as a budgeted income statement.

5. Projected Balance Sheet

A projected balance sheet, also referred to as pro forma balance sheet, lists specific account
balances on a business' assets, liabilities and equity for a specified future time. A forecasting
balance sheet is a useful tool for business planning in general, and it particularly benefits those
individuals responsible for arranging and bringing in additional financing.

Using a projected balance sheet, financial personnel can present lenders and investors with
detailed financial information about planned future asset expansion, making it easier to persuade
capital providers to supply the required financing.

6. Return in Investment
Measures the gain or loss generated by an investment in relation to its initial cost. It allows the
reader to gauge the efficiency and profitability of an investment and is often used to influence
financial decisions, compare a company's profitability, and analyze investments.

Growth Strategy
Exit Strategy

* Curriculum Vitae
* Bibliography