Read chapter $6$ and answer the $20$ review questions listed on pages $221$ and $222.$

$6-1.$ What is a business plan?

$6-2.$ What are the advantages of preparing a business plan for a new venture?

$6-3.$ When is the appropriate time to write a business plan?

$6-4.$ What are the two primary reasons for those starting a new venture to write a business plan?

$6-5.$ It is often argued that the process of writing a business plan is as important as the plan itself, particularly for the top management team of a young firm. Why is this so$?$

$6-6.$ Who reads the business plan and what are they looking for when doing so$?$

$6-7.$ How will investors typically react if they think a business plan is based on estimates and predictions rather than on careful analysis and facts?

$6-8.$ Why is it important for a business plan to follow a conventional structure rather than be highly innovative and creative?

$6-9.$ What are the differences among a summary business plan, a full business plan, and an operational business plan?

$6-10.$ Why should the executive summary, which is one of the first things that appears in a business plan, be written last?

$6-11.$ What is the difference between the industry analysis section and the market analysis section of a business plan?

$6-12.$ What is the difference between a concentrated and a fragmented industry?

$6-13.$ What is the purpose of $$The Economics of the Business$$ section of a business plan?

$6-14.$ If you are developing a completely new product or service, what type of information should you include in your business plan regarding the status of the development efforts?

$6-15.$ What is the purpose of the $$Operations Plan$$ section of a business plan?

$6-16.$ Why is the $$Management Team and Company Structure$$ section of a business plan often touted as one of the most important sections?

$6-17.$ What is the purpose of a sources and uses of funds statement?

$6-18.$ What is the purpose of an assumptions sheet?

$6-19.$ What are the differences between historical financial statements and pro forma financial statements?

$6-20.$ What is the number$-$one rule in making an investor presentation?

Read Birchbox Case $6.1($pages $225-227)$ and answer its $4$ questions: $6-34$; $6-35$; $6-36$: $6$:$37.$

$6-34.$ How effectively do you think Katie Beauchamp and Hayley Barna used their time in college to advance their business idea?

$6-35.$ In what ways is Birchbox$$s business approach a win$-$win for both its suppliers and its customers?

$6-36.$ How was writing a business plan and preparing for a business plan competition helpful to Katie Beauchamp and Hayley Barna while Birchbox was still in the planning, testing, and prototyping stage?

$6-37.$ Going forward, what are the most serious challenges facing Birchbox? Which of these challenges do you believe is the most threatening to the firm$$s success?