Chapters Covered in Finals Chapter 3, Designing a Competitive Business Model and Building a Solid Strategic Plan Chapter 4, Conducting a Feasibility Analysis and Crafting a Winning Business Plan Chapter 8, Building a Powerful Marketing Plan Chapter 10, Pricing Strategies Chapter 11, Creating a Successful Financial Plan Chapter 12, Managing Cash Flow Chapter 13, Sources of Financing: Debt and Equity Chapter 14, Choosing the Right Location and Layout

Review Questions What is the purpose of a Business Model? A Feasibility Study? A Business Plan? What are their differences? What are their similarities? What are the parts of the Business Plan that a lender would scrutinize? Why? What is the competitive advantage of your group’s business idea? Why do you think it is achievable? What is the chosen business strategy of your group? Why did you choose this strategy? How will you use this strategy to win?

Purpose Business Model envision your business idea, describe how it can gain competitive advantage Feasibility Study analyze your business idea’s possibility to succeed in the market, make profits, and earn enough Business Plan plan what you will do in marketing and operations, estimate financial results, obtain funding

Components Business Model Vision-What will it be? How successful will it be? Mission-What will it do? How will it do it? Goals-What will it achieve in what timeframe? SMART SWOT-What are its positive and negative internal factors? What are its positive and negative external factors? Industry Key Success Factors-What will make a company successful in this industry? Competitive Profile Matrix-Who are my competitors and how do I compare against them as far as the industry KSFs are concerned? Competitive Advantage-Because of this analysis, what is my competitive advantage over the others? Business Strategy-How will I achieve this competitive advantage and succeed?

Components Feasibility Study Industry and Market Feasibility Why is this an attractive industry for me to go into? Why is this an attractive market for me to target? Product or Service Feasibility Will I be able to sell my product/service at a price higher than my cost to produce it so I can make enough profits? Financial Feasibility Will the estimated earnings exceed the interest I will earn if I just placed my money in the bank and I just got a job?

Components Business Plan Executive Summary General Description Marketing Plan Operational Plan Financial Plan Appendices

Differences Business Model What is it? What can it be? Feasibility Study How successful will it be? Is it worth doing? Business Plan How it will be run? What help do I need?

Similarities Business Model + Feasibility Study = Business Plan The following are in all 3: industry description, target market analysis, product/service description The following are in business model and business plan: VMG, competition, SWOT, strategy The following are in feasibility study and business plan: financials Note: Operations is only in Business Plan

Competitive Advantage The aggregation of factors that sets a small business apart from its competitors and gives it a unique position in the market superior to its competition Why did you rank yourself higher in these KSFs compared to your competitors?

Business Strategy A road map of the actions an entrepreneur draws up to fulfill a company’s vision, mission, and goals. Cost leadership: become lowest-cost producer relative to competitors Differentiation: build customer loyalty by positioning goods or services in a unique or different fashion from competitors Focus: select one or more market segments, identify special needs, wants and interests and approach those with a good product or service designed to excel in meeting those needs, wants and interests