The document outlines the key elements that should be included in an effective business plan. It discusses that a business plan is used to convince lenders and investors of the viability of a business idea. The seven core elements that should be included are: history and background of the idea, goals and objectives, products/services, ownership structure, management team, marketing plan, and current and projected financial statements. Additional optional elements could include details on location, technology used, and business ethics.

1. Chapter 5 Developing a Business Plan Business Ownership Spring 2007 Williams C. Greene, (2000). Entrepreneurship Ideas in Action. Cincinnati, OH: South-Western.

2. Lesson 5.1 Why Do you Need a Business Plan “ Every great business begins with a creative idea and tedious planning” -Christopher Williams; B.B.A. The University of Texas at Austin

3. The Business Plan A business plan is a written document that describes all the steps necessary in opening and operating a successful business. Writing a business plan is one of the most important things an entrepreneur will do because it is used to convince banks and lenders to invest in your business. (pg. 94)

4. Purpose of a Business Plan Explain the idea behind your business and spells out how your product or service will be produced and sold. Sets Specific objectives and describes how your business expects to achieve them. Describes the backgrounds and experience of the people who will be running the business. (pg. 94)

5. Importance of a Business Plan It makes you think about all aspects of your business. Helps you secure financing for your business. Helps you Communicate your ideas to others. Serves as a tool for managing your business. (pg. 95)

6. Lesson 5.2 Basic Elements of a Business Plan All business plans are different, but they all serve the same purpose. Since business plans have the same goals they all have seven basic elements.

7. Seven Basic Elements of a Business Plan History and Background of your idea Goals and objectives for your company Products or services you will offer Form of Ownership Management and staffing Marketing Current and projected financial statements (pg. 98)

8. History and Background Describing how you came up with your idea can help lenders, investors, and others understand how your business will operate. (pg. 98)

9. Goals and Objectives Your business plan should outline your short-term, medium term, and long-term goals. This section describes your mission and vision of your company. (pg. 99)

10. Products and Services This part of the business plan should describe the products or services your company plans to produce and sell. (pg. 99)

11. Form of Ownership The section details your form of ownership. The section is important because each legal form of business has an effect oh how the business works and profits. (pg. 100)

12. Management and Staffing This section shows that you and the people who will be working for you have the experience, maturity, and common sense to manage your business well. (pg. 100)

13. Marketing This section includes information on the marketing of your business and details of your marketing plan. (pg. 100)

14. Financial Statements This portion of your plan should point out important financial statements that give lenders an idea of the risk of your company. (pg. 101)

15. Additional Elements of a Business Plan Here are some additional elements we will analyze: Location Technology Ethics