Read pages 145 to 147 – Life Cycle of a Business

1. What are the 5 stages in the life cycle of a business?
2. List the main points of each section.

Read pages 147 (What is a Venture Plan?) and 148.

1. What is a venture plan?
2. What does it include?
3. Should it include both words and numbers? Why?
4. What does a good venture plan act as?
5. If you are an enterprising employee and your goal is to complete a project instead of starting a venture, what would your plan be called?
6. If your venture is for-profit, what will a venture plan help you predict?
7. If your venture is not-for-profit, how can a venture plan help you?

Read the Mission Statement on page 148.

1. What is a mission statement?
2. Why should you have a mission statement in your venture plan?

Read page 150 Six Reasons to Prepare a Venture Plan

1. What are the 6 reasons to prepare a venture plan?

Read page 151 to 158

1. What are the 5 main sections of a typical venture plan?
2. What is the purpose of the Executive Summary?
3. What does a great executive summary open with? Why?
4. Although the Executive Summary appears first in a venture plan is it actually the last thing you will complete? Why or why not?
5. Why is a market analysis important? What can it help you do?
6. Before you register your business name, what must you first determine?
7. What are the three forms of business ownership?
8. What does registering your new business name ensure?
9. What does the entrepreneur need to consider in the Resource Analysis section of the venture plan?
10. What are material resources?
11. What is the purpose of the Operating Strategy?
12. The first part of the Operating Strategy usually deals with human resources management. What does this mean?
13. The Operating Strategy also deals with the production process and how the necessary supplies will be obtained. What does this section describe?
14. The final section of a venture plan is the Financial Strategy. Most financial statements are based on past performance. What is the Financial Strategy based on?
15. In general, what will the Financial Strategy explain?
16. What are some sources of capital for a venture? (Capital refers to the funds needed to operate the venture.)

Read page 163-164

Make your own notes. You will be quizzed with your notes the next day.

Read page 165-166, Lessons Learned

Answer questions 1 to 5.