Lesson 3.

3
How to Create an Effective Business Plan

Learning Objectives
3.3-1 Describe resources available for
researching your business plan.
3.3-2 Name common mistakes to avoid in
business planning.

Chapter 3 Entrepreneurship: Ideas in Action 6e

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 Research the Business Plan

 Community, Government, and Professional Resources

 The Small Business Administration (SBA) is an
independent agency of the federal government that was
created to provide support to entrepreneurs and small
businesses.

Chapter 3 Entrepreneurship: Ideas in Action 6e

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 Research the Business Plan (continued)

 Community, Government, and Professional Resources

(continued)
 Small Business Development Centers (SBDCs) provide
technical assistance to small businesses and prospective
entrepreneurs.

Chapter 3 Entrepreneurship: Ideas in Action 6e

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 Research the Business Plan (continued)

 Community, Government, and Professional Resources

(continued)
 SCORE is a nonprofit association made up of working and
retired business professionals who volunteer their time to
provide small businesses and entrepreneurs with free
real-world advice and know-how.

Chapter 3 Entrepreneurship: Ideas in Action 6e

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 Research the Business Plan (continued)

 Community, Government, and Professional Resources

(continued)
 Chambers of Commerce
 Trade associations: Organizations made up of
professionals in a specific industry
 Professional Consultants
 Financial Institutions

Chapter 3 Entrepreneurship: Ideas in Action 6e

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 Research the Business Plan (continued)

 Print Resources
 Online Resources

Chapter 3 Entrepreneurship: Ideas in Action 6e

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 Mistakes in Business Planning

 Unrealistic Financial Projections

 An Undefined Target Market
 Poor Research
 Ignored Competition
 Inconsistencies and Omissions in the Business Plan

Chapter 3 Entrepreneurship: Ideas in Action 6e

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 3.3 Quiz/Test Review for Assessment

1. To convince readers that you have produced a practical business idea, you must include information
and data from objective sources. T/F
2. The Small Business Administration (SBA) has at least one office in every US state. T/F
3. SCORE is cosponsored by the SBA. F/T
4. Entrepreneurs can hire expert from trade association to help them prepare business plans. F/T
5. A local chamber of commerce can provide information on trends affecting local businesses, local
resources, and zoning and licensing information. T/F
6. The Internet is not a trusted source of information on how to develop a business plan. F/T
7. An undefined target market can ruin a business plan. T/F
8. Never reveal your competitors’ strengths in your business plan—focus only on what they have done
wrong. F/T
9. The only person who should read a business plan is the owner and potential investors. F/T
10. I miss dinning-in my favorite fast-food restaurant. ?

Chapter 3 Entrepreneurship: Ideas in Action 6e

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