2. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western ChapterChapter 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 3

3. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 3 Slide 2 Ideas in Action Two young men turned a passion for graffiti art into a business. Prior to requesting financing from a bank, you should prepare the “five c’s.” character capacity capital collateral conditions Turning an Idea into a Business

4. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 3 Slide 3 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.

5. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 3 Slide 4 Terms business plan

6. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 3 Slide 5 The Business Plan business plan a written document that describes all the steps necessary for opening and operating a successful business A business plan will: describe your ideas to investors serve as a guide for you as you start your business

7. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 3 Slide 6 Purposes of a Business Plan A business plan: explains the idea behind your business how your product or service will be produced and sold sets specific objectives and how you will achieve them describes the experience of the people who will run the business

8. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 3 Slide 7 What are the three main purposes of a business plan?

9. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 3 Slide 8 Importance of a Business Plan A business plan: makes you think about all aspects of your business may help you secure financing helps you communicate your ideas to others can serve as a tool for managing your business

10. Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 3 Slide 9 Why is a business plan important to an entrepreneur?