| A | B |
|---|
| business plan | proposal to describe a new business to investors/lenders |
| Description/analysis of the Business | Section of the plan that introduces the products to sell, philosophy, and self-analysis |
| business philosophy | tells how the business should be ran for customers, employees, and competitors |
| self-analysis | description of personal education, training, strengths, weaknesses, and a plan to better oneself |
| trading area | geographic area from which a business draws its customers |
| geographic data | population distribution in an area |
| demographic data | statistics such as age, gender, income, etc. |
| economic factors | economic growth, employment trends, interest rates, mergers, etc. |
| disposable income | income after taxes |
| buying income | a.k.a. disposable income |
| buying power index (BPI) | disposable income, population, and retail sales are factored together and expresed as a percentage |
| SBA | organization that assists and funds small businesses |
| target market | specific group of people that you want to reach |
| buying behavior | process individuals use to decide whom to buy from, when, and what |
| Organizing the Plan | section of the business plan that tells what type of ownership will be used, staffing needs, and the marketing plan |
| capital | money or raw materials |
| equity capital | raising money from within the company |
| debt capital | raising money by borrowing funds |
| organizational chart | diagram of various jobs, descriptions, and authority in a company |
| job descriptions | written statements that list the requirements of a particular job |
| Financial plan | The section of the business plan that shows investors and lenders what money is neede to start the business |
| Six C's of Credit | A set of criteria banks use to evaluate potential borrowers |
| capital (the 6 c's one) | how much of your own money that will be invested in the new business |
| collateral | something of value that is pledged to ensure repayment of a loan |
| capability | the training and work experience you have will show this |
| character | personal references from employers and other aquaintances can show this |
| coverage | adequate insurance will show this |
| circumstances | the bank will ask for any unusual of these that may be occuring |
| credit union | cooperative financial association formed by its members |
| Financial Statements | A part of the Financial Plan that show the projected income and expenses for the business |
