Azlo University

Azlo University Business Idea

This lesson covers:

  • The components of a business plan 
  • Key financial considerations
  • How to launch a business properly
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Section 1: What is a business plan?

A business plan is your approach to fulfilling the short and long-term goals of your business, so it should be unique to you.

One of the best practices for developing a business plan is to write out the details of your plan in a document or create a slide presentation.

 

The elements of this written plan often include, but are not limited to:

 

  • an executive summary
  • company process
  • employee hierarchy
  • financial roadmap

Tip: If you are going into business with one or more partners, the business plan should have relevant input and approval from all partners.

Section 1 Quiz:
What is a business plan?

3 Questions | True or False
Start

Section 1 Quiz: What is a business plan?

Question 1 of 3
Do you automatically have a working and functioning business if you have a business plan?
Next

Section 1 Quiz: What is a business plan?

Question 2 of 3
A business plan should address both the short-term and long-term goals of the business.
Next

Section 1 Quiz: What is a business plan?

Question 3 of 3
There is only one template you can use for developing your business plan.
Next

Section 1 Quiz: What is a business plan?

Finished
Do you automatically have a working and functioning business if you have a business plan?
A business plan should address both the short-term and long-term goals of the business.
There is only one template you can use for developing your business plan.
Azlo banking triangle left

Section 2: Financial plan

Having a clear financial plan can help you establish a good foundation when launching a business.

 

The financial section generally consists of three key elements:

 

  • A sales forecast

 

This is a way to project estimated gross income. Sales forecasts address short- and long-term financial goals, as well as pricing and economic trends specific to your industry.

 

  • A cash flow statement

 

This provides aggregate data on the inflow of cash your company will receive against the outgoing cash that pays for business operations.

 

  • A Profit and Loss Statement (P&L)

 

A P&L is a declaration of the income and expenses incurred during a set period of time. Oftentimes, these periods are yearly and/or quarterly.

Section 2 Quiz:
Financial plan

3 Questions | Multiple Choice
Start

Section 2 Quiz: Financial plan

Question 1 of 3
Which of the following are generally included in a financial plan?
Next

Section 2 Quiz: Financial plan

Question 2 of 3
What are the general timeframes that P&L reports on?
Next

Section 2 Quiz: Financial plan

Question 3 of 3
What is a Sales Forecast?
Next

Section 2 Quiz: Financial plan

Finished
Which of the following are generally included in a financial plan?
What are the general timeframes that P&L reports on?
What is a Sales Forecast?
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Section 3: Important start-up documents

From the beginning, it’s important to know what type of business structure best fits your needs. This can ensure you complete the correct paperwork. 


There are many business types, with four main classifications: sole proprietorship, partnership, corporation, and limited liability corporation (LLC). Within these categories, there are several ways to structure your business. Seeking professional advice could help you choose the best structure for your business.

Depending on the business type, your first step may be to register the name of your business in your state. Then, if applicable, apply for your Employee Identification Number (EIN). This nine-digit number is what the Internal Revenue Service (IRS) assigns to businesses, mainly for tax purposes.


If your business requires it, you must then register your business with any other relevant state or local agencies, such as a revenue office.

Once this is complete, consider opening a business bank account. Keep in mind that many banks require proof of registration and an EIN number.

Section 3 Quiz:
Important start-up documents

3 Questions | True or False
Start

Section 3 Quiz: Important start-up documents

Question 1 of 3
The IRS predominantly uses your employee identification number (EIN) for tax purposes.
Next

Section 3 Quiz: Important start-up documents

Question 2 of 3
There are only four core types of businesses.
Next

Section 3 Quiz: Important start-up documents

Question 3 of 3
It is recommended you get your Employee Identification Number (EIN) before you register your business name.
Next

Section 3 Quiz: Important start-up documents

Finished
The IRS predominantly uses your employee identification number (EIN) for tax purposes.
There are only four core types of businesses.
It is recommended you get your Employee Identification Number (EIN) before you register your business name.