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Chapter 07 - The Business Plan: Creating and Starting the Venture
Section 3
From the Opportunity to the
Business Plan
Chapter 07
The Business Plan: Creating and Starting the Venture
Chapter 08
The Marketing Plan
Chapter 09
The Organizational Plan
Chapter 10
The Financial Plan
7-1
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
Chapter 07
THE BUSINESS PLAN: CREATING AND
STARTING THE VENTURE
LEARNING OBJECTIVES
01: To define what the business plan is, who prepares it, who reads it, and how it is evaluated.
02: To understand the scope and value of the business plan to investors, lenders, employees,
suppliers, and customers.
03: To identify information needs and sources for each critical section of the business plan.
04: To enhance awareness of the value of the Internet as an information resource and marketing
tool.
05: To present examples and a step-by-step explanation of the business plan.
06: To present helpful questions for the entrepreneur at each stage of the planning process.
07: To understand how to monitor the business plan.
08: To understand the importance of contingency planning.
7-2
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
CHAPTER OUTLINE AND TEACHING NOTES
OPENING PROFILE—Kara Goldin

I. PLANNING AS PART OF THE
BUSINESS OPERATION
A. Planning is a process that never ends.
1. In the early stages, the entrepreneur
should prepare a preliminary business
plan.
2. The plan will finalize as the entrepreneur
has a better sense of the market, the
marketing of the product or service, the
management team, and the financial
needs of the venture.
B. Many different types of plans may be part of
any business operation—financial, marketing, Success does not require a business plan and
human resource, production, and sales plans. some researchers point out Steve Jobs, Bill Gates,
and Michel Dell succeeded without a business plan.
1. Plans may be short term or long term, or Yet, the importance lies in the process of preparing
Learning Objective 01
they may be strategic or operational. a business plan since planning in future stages of
To define what the business plan is,
growth of the venture will be necessary. A good
who prepares it, who reads it, and
2. All plans have one purpose: to provide business plan is important for the initial startup but
how it is evaluated.
guidance and structure to management in also for subsequent changes in strategy and for
growing the new venture.
a rapidly changing market environment. K EY
T ER M
II. WHAT IS THE BUSINESS PLAN? Business plan

A. A business plan is a written document Written document describing all
relevant internal and external
prepared by the entrepreneur that describes elements and strategies for starting a
7-3
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
all the relevant external and internal elements Discussion point: Have five or six examples of new venture
business plans to pass out and discuss. Some can
involved in starting a new venture. be better ones, while others may be poorer
1. It is often an integration of the functional examples. For confidentiality, blank out certain
pieces of information. Alternatively, show sections
plans such as marketing, finance, from business plans illustrating good and not so
manufacturing, and human resources. good examples throughout this lecture.
Entrepreneur Magazine’s website has sample
2. For a startup, it addresses both short- and business plans.
long-term decision making for the first (www.entrepreneur.com/businessplan/index.html).
three years of operation.
3. The business plan is like a road map for If your goal or mission is driving from Boston to Los
the business development. Angeles, there are many possible routes.
4. The external uncontrollable factors that For the traveler, consider external factors such as
the entrepreneur should take into emergency car repair, weather conditions, road
conditions, sights to see, and available
consideration are: new regulations, the campgrounds.
economy, competition, social changes,
changes in consumer needs, or new The traveler has some idea of money and time
available, route choices, campgrounds, etc.
technology.
5. The entrepreneur has some control over Travel plans respond to three questions: Where am
I now? Where am I going? and How do I get there?
manufacturing, marketing, and the The business plan answers the same questions for
personnel in the new venture. the startup.
B. In developing the business plan, the

entrepreneur can determine how much money Discussion point: If you are not seeking outside
will be needed from new and existing sources help (loans, advise, etc.) should you still write a
business plan? Why or why not?
to achieve the plan.
7-4
III. WHO SHOULD WRITE THE PLAN?

A. The business plan should be prepared by the
entrepreneur; however, he or she may consult
many sources.
1. Lawyers, accountants, marketing
consultants, and engineers are useful in
preparation of the plan. Discussion point: See http://www.sba.gov and
http://www.score.org for more information on writing
2. Other resources are the Small Business a business plan.
Administration (SBA), Senior Corps of
Retired Executives (SCORE), small
business development centers (SBDCs), Discussion point: A good example of a Business
universities, friends, and relatives. Plan software is Business Plan Pro which offers a
number of sample plans on their website:
3. The Internet also provides outlines for http://www.bplans.com/sample_business_plans.php
business planning.
4. Entrepreneurs can also hire or offer equity
to another person to provide expertise in
preparing the business plan and become a
member of the management team. Table 7.1
“Skills Assessment”
B. To help determine whether to hire a
An illustration of a rating to determine
consultant, the entrepreneur needs to make an what skills are lacking and by how
objective assessment of his or her own skills. much.
An entrepreneur with a new invention and adequate
C. Through this self-assessment, the skills in three of the nine skills on the skills
entrepreneur can identify what skills are assessment, found a partner who could contribute
those lacking or weak skills.
needed and where to obtain them.
7-5
IV. SCOPE AND VALUE OF THE

BUSINESS PLAN – INFORMATION Learning Objective 03
To identify information needs and
NEEDS sources for each critical section of
A. Before preparing a business plan, the Information should focus on marketing, finance, and the business plan.
production.
entrepreneur should do a quick feasibility
study to see if there are possible barriers to
success.
Discussion point: It may be helpful to consider
1. The entrepreneur should clearly define better and worse business plan examples
the venture’s goals and objectives, which throughout this section.
provide a framework for the business

plan, marketing plan, and financial plan.
2. Goals and objectives that are too general A business plan calling for six stores by year two of
or that are not feasible make the business a startup is not feasible without explaining how and
plan difficult to control and implement. where the stores would be located.
3. Well defined goals and objectives are

important given the impact of technology
Entrepreneur in Action: Dan Feshbach’s son is
on the venture. The text uses an example autistic. This, in part caused him to found Animated
of the food industry utilizing digital Speech which develops software to assist children
ordering with store apps. with autism and other challenges. It took him a
number of years to get going – including three
4. Once this solid foundation is in place, years negotiating with a university which had
strategy decisions can be established. developed the basic technology. Now his product is
in schools in 15 states and several foreign
B. Market Information countries. (Lev-Ram, Michal “A Friendly Face for
Autistic Kids” Business 2.0 March 2006, pg. 78
1. It is important to know the market http://money.cnn.com/magazines/
potential for the product or service. business2/business2_archive/2006
/04/01/8372789/index.htm)
7-6
a. The first step is to define the market. Will the product be purchased by men or women?
People of high income or low income? Rural or
b. A well-defined target market makes it urban dwellers? Highly educated or less educated
easier to project market size and people?
subsequent market goals.

2. In order to build a strong marketing plan,
the entrepreneur will need to gather
information on the industry and market.
Figure 7.1
a. This process can be visualized as an “An Upside-Down Pyramid Approach
inverted pyramid, starting with very to Gathering Market Information”
broad based data and information and
work down until a positioning
strategy and quantifiable goals and
objectives can be developed.
b. This information can then be used in Discussed later in this chapter and also see
the industry analysis and marketing Chapter 08.
planning sections of the business plan.

3. The information gathering process: Table 7.2
“Sources of Data on Environmental
a. General environmental trends should Trends, Industry Trends,
be evaluated, including household Financial Ratios, and Other
Benchmarks”
income trends, population shifts, food Table 7.2 provides a partial list of
consumption habits, travel, digital available sources for typical census-
applications and employment trends. related data.
b. The next step is the assessment of

trends in the industry from a national
perspective.
7-7
c. The next two stages consider trends in Entrepreneur in Action: Lois and
Ross Melbourne started TimeVision
the local market, where the business in 1994. At the time they had found a
will be located. niche with no competition. A few
years later they had at least two
d. General local economic trends should direct competitors. Now gathering
be considered. timely information on their
competitors’ activities is an important
e. The final step is an analysis of the part of keeping their business plan up
local competitive environment. to date. According to a
PricewaterhouseCoopers' survey
f. After all of this analysis has been These are part of the marketing plan, discussed in only 4 percent of small business
completed the entrepreneur is ready to more detail in Chapter 08. Additionally, these data owners found competitive information
clarify the product or service offering, lay the groundwork for the financial projections and less important now than it was
forecasts discussed in Chapter 10. before. (Henricks, Mark “Why You
actual market positioning, and market Need Competitive Intelligence”
objectives. Entrepreneur November 2002
http://www.entrepreneur.com/
C. Operations Information Needs magazine/entrepreneur/2002/
1. The entrepreneur may need information november/56318.html)
on the following:
a. Location
b. Manufacturing operations
c. Raw materials
d. Equipment
e. Labor skills
f. Space
g. Overhead
h. Technology
7-8
2. Each item may require some research but

this information is needed by those who
will assess the business plan.
D. Financial Information Needs
1. Before preparing the financial section of
the business plan, the entrepreneur should
prepare a budget, including possible
expenditures and revenue sources for the
first year.
a. The budget includes capital
expenditures, direct operating
expense, and cash expenditures for
nonexpense items.
b. Revenues from sales must be forecast Forecasting is discussed in Chapter 08.
from market data.
To prepare the actual budget, see Chapter 10.
c. The entrepreneur will need to identify
benchmarks in the industry that can be
used in preparing the final pro forma
statements.
2. The entrepreneur can use secondary
sources that provide percentage norms for
such costs in projecting operating costs.
3. Sources for benchmarks include:
a. Publications such as Financial Studies
of the Small Business.
7-9
b. 10K reports of similar public

competitors.
c. Trade associations and trade
magazines.
4. Some investors require five-year
projections.
E. Using the Internet as a Resource Tool
1. Thanks to the Internet, entrepreneurs are
able to access information efficiently,
expediently, and at very little cost.
2. Information on industry analysis,
competitor analysis, and measurement of
market potential can be located online.
3. In addition, the Internet also provides
opportunities for marketing strategy
through websites and social media.
a. e-commerce was $459 billion in 2017.
b. By 2022, projections say, online sales
will make up 17% of all retail sales.
4. Access competitors’ websites and social Learning Objective 04
media feeds to gain knowledge of their To enhance awareness of the value
strategy in the marketplace. of the Internet as an information
resource and marketing tool.
5. The entrepreneur can also investigate
blogs and discussion groups.
7-10
V. WRITING THE BUSINESS PLAN

A. The business plan should be comprehensive Discussion point: Again, having sample plans for To present examples and a step-by-
the students to consider can be helpful. step explanation of the business
enough so a potential investor has a complete
plan.
understanding of the venture and clarifies the
entrepreneur’s thinking of the business.
1. The business plan can take hundreds of
hours to prepare. Table 7.3
“Outline of a Business Plan”
2. Many entrepreneurs incorrectly estimate This outline is only meant to be a
the length of time writing a business plan guide. Each item in the outline is
detailed in this chapter, detailing key
takes.
questions in each section.
B. Introductory Page
1. The title or cover page providing a brief
summary of the business plan’s contents,
and should include:
Table 7.4
a. The company’s name and address. “Sample Introductory Page”
Investors consider this page
b. The name of the entrepreneur(s), important as they can determine the
telephone number, fax number, e-mail amount of investment needed without
having to read the entire plan.
address, and website.
c. A paragraph describing the company
and the nature of the business.
d. The amount of financing needed. The entrepreneur may offer a package (stock or
debt).
e. A statement of the confidentiality of
the report.
2. It also sets out the basic concept that the
7-11
entrepreneur is attempting to develop.

C. Executive Summary
Discussion point: Does an elevator
1. This section is prepared after the total plan differ from an executive
plan is written. summary? If so, how?
2. It should be two to three pages in length.

3. The summary should concisely highlight This is a very important section of the business plan
since the investor uses the summary to determine if
the key points in the business plan. the entire business plan is worth reading.
4. Questions that should be addressed
include:
a. What is the business concept/model?
b. How is this business concept or model
unique?
c. Who are the individuals starting this
business?
d. How will they make money and how
much?
5. If the business has a strong growth plan If the venture is not initially expecting this kind of
and expects to be positioned for an IPO, growth, the entrepreneur should avoid any
discussion of an exit strategy in the executive
then the summary should also include an summary.
exit strategy.
Do not summarize every section of the plan, and
6. Any supportive evidence that might remember who is reading the plan.
strengthen the case should be included.
7. Remember that this section is only meant
to highlight key factors and provide a
7-12
strong motivation to the potential investor Entrepreneur in Action: Most people wouldn’t
consider New York City shortly after 9/11 as a real
to read it in its entirety. estate opportunity environment. Most people aren’t
D. Environmental and Industry Analysis Edward Poteat, Robert Horsford and Alyah
Horsford. Horsford and Poteat Realty grew to $ 3 K EY
T ER M
1. The entrepreneur should first conduct an million in sales after just a few years by providing
environmental analysis to identify trends affordable house, mostly to city employees.
Environmental analysis
(Anonymous, “Got ID?” Entrepreneur, November
and changes occurring on a national and Assessment of external
2002
uncontrollable variables that may
international level that may impact the http://www.entrepreneur.com/
impact the business plan
new venture. magazine/entrepreneur/2002/
november/56270.html)
2. Examples of environmental factors are:
a. Economy
b. Culture
c. Technology
d. Legal concerns – see Chapter 06
e. All of the above external factors are
generally uncontrollable. As stated earlier, this process can be visualized as K EY
3. Next the entrepreneur should conduct an an upside-down pyramid leading to specific market T ER M
strategies and objectives – See Figure 7.1.

industry analysis that focuses on specific Industry analysis
industry trends such as: Reviews industry trends and
Marketing research is discussed in Chapter 08. competitive strategies
a. Industry demand
b. Competition
c. There are numerous sources that the Some of these were mentioned earlier – See Table
entrepreneur can consult to attain 7.2.
general industry and competitive data.

4. The last part of this section should focus
7-13
on the specific market.

a. This would include such information
as who the customer is and what the Entrepreneur in Action: Like many others, Chris
Barclay saw China as the land of opportunity. He
business environment is like. moved to China in 1999 and tried a number of
b. This information is significant to the ventures aimed at selling products to Chinese Table 7.5
consumers. After carefully analyzing his “Critical Issues for Environmental and
preparation of the marketing plan environment, he realized the real money lay in Industry Analysis”
section – See Chapter 08. selling something to the thousands of US and A list of some key questions the
European firms trying to do business in China. With entrepreneur should consider for this
c. There are also numerous sources of a quick rewrite of his business plan, in 1995, he section of the business plan is
data for this information as well. started a company that provides management provided in Table 7.5.
training to the Chinese employees of these firms.
E. Description of Venture Growth was slow at first, but by 2004 he was
1. The description of the venture should be bringing about $2 million. (Zachary, G. Pascal K EY
T ER M
“Making It in China” Business 2.0, August 2005
detailed in this section. http://www.freerepublic.com/
Description of the venture
2. This should begin with the mission focus/f-news/1461305/posts)
Provides complete overview of the
statement or company mission, which product(s), service(s), and operations
of a new venture
describes the nature of the business and
what the entrepreneur hopes to
accomplish with that business.
3. Key elements should be described in Learning Objective 06
detail, including the product or service, To present helpful questions for the
entrepreneur at each stage of the
location and size of the business, planning process.
personnel, background of entrepreneur,
and history of the venture. Table 7.6
“Describing the Venture”
4. The emphasis placed on location is a Table 7.6 summarizes some of the
function of the type of business. important questions the entrepreneur
needs to answer when preparing this
a. In assessing the space the business section of the business plan.
7-14
will occupy, the entrepreneur should

consider parking, access from the
roadway, access to customers and
suppliers, and zoning laws.
b. An enlarged local map is helpful.
5. Maps that locate customers, competitors,
and alternative locations can be helpful.
6. If the building or site decision involves
legal issues, the entrepreneur should hire
a lawyer. K EY
T ER M
F. Production Plan Production plan

1. If a new venture is a manufacturing Details how product(s) will be
manufactured
operation, a production plan is necessary.
2. This plan should describe the complete
manufacturing process, including whether
or not the process is to be subcontracted.
3. If the manufacturing is carried out by the Table 7.7
entrepreneur, the plan should describe the “Production Plan”
physical plant layout; machinery and Table 7.7 summarizes some of the
key questions in this section and the
equipment needed; raw materials and operations section of the business
suppliers’ names; cost of manufacturing; plan.
and any future capital equipment needs.
4. If the new venture does not include any
manufacturing functions, this section
would be eliminated.
7-15
G. Operations Plan
An Internet retail sports clothing operation would
1. All businesses—manufacturing or non- need to describe how and where the products
manufacturing—should include an offered would be purchased, how they would be
stored, how the inventory would be managed, how
operations plan. products would be shipped, and, importantly, how a
2. This section describes the flow of goods customer would log on and complete a transaction.
and services from production to the

customer. The major distinction between services and
manufactured goods is services involve intangible
3. If the venture is not manufacturing, the performances. Performance often depends on
entrepreneur would need to describe the location, facility layout, and personnel.
chronological steps in completing a
business transaction.
K EY
T ER M
H. Marketing Plan
1. The marketing plan describes how the Chapter 08 discusses the marketing plan in detail. Marketing plan
Describes market conditions and
products will be distributed, priced, and
strategy related to how the product(s)
promoted. and service(s) will be distributed,
priced, and promoted
2. Marketing research evidence to support
The budget and appropriate controls needed for
critical marketing decision strategies and marketing strategy decisions is discussed in detail
forecasting sales should be described in in Chapter 08.
this section.
3. Potential investors regard the marketing
plan as critical to the venture’s success.
4. Marketing planning will be an annual
requirement and should be regarded as the
road map for short-term decision making.
I. Organizational Plan
7-16
1. The organizational plan is the part of the K EY

T ER M
business plan that describes the venture’s

Organizational plan
form of ownership. Describes form of ownership and
2. If the venture is a partnership, the terms lines of authority and responsibility of
members of new venture
of the partnership should be included.
3. If the venture is a corporation, this should
include the number of shares authorized,
share options, and names and addresses of Table 7.8
the directors and officers. “Organization Structure”
Table 7.8 summarizes some of the
4. It is helpful to provide an organization key questions the entrepreneur
chart indicating the lines of authority. needs to answer in preparing this
section of the business plan.
5. This chart shows the investor who Chapter 09 provides more detail on this part of the
business plan.
controls the organization and how
members interact.
J. Assessment of Risk K EY
T ER M
It is important that the entrepreneur make an

Assessment of risk
assessment of risk in the following manner: Identifies potential hazards and
alternative strategies to meet
1. The entrepreneur should indicate the
business plan goals and objectives
potential risks to the new venture. Major risks for a new venture could result from a
2. Next should be a discussion of what competitor’s reaction; weaknesses in the marketing,
production, or management team; changes in the
might happen if these risks become political administration affecting taxes, employment,
reality. or exporting; and new advances in technology that
might render the new product obsolete.
3. Finally, the entrepreneur should discuss
the strategy to prevent, minimize, or
respond to these risks.
7-17
K. Financial Plan K EY
T ER M
1. The financial plan determines the Chapter 10 discusses the financial plan in more
Financial plan
investment needed for the new venture detail.
Projections of key financial data that
and indicates whether the business plan is determine economic feasibility and
necessary financial investment
economically feasible. commitment
2. Three financial areas are discussed:
a. The entrepreneur should summarize
the forecasted sales and expenses for
the first three years.
b. Cash flow figures for three years are
AS SEEN IN BUSINESS NEWS:
needed, with the first year’s An Unusual Startup: Elevator Pitch
projections provided monthly. For Coffee Pouches
c. The projected balance sheet shows the

financial condition of the business at a
specific time.
L. Appendix
1. The appendix contains any backup
material not included in the text of the
document.
2. Reference to any of the documents in the
appendix should be made in the plan
itself.
3. Possible documents:
a. Letters from customers, distributors,
or subcontractors.
7-18
b. Secondary or primary research data.

c. Leases, contracts, and other
agreements.
d. Price lists from suppliers and
competitors.
VI. WHO READS THE PLAN? To understand the scope and value
of the business plan to investors,
A. The business plan may be read by employees, lenders, employees, suppliers, and
investors, bankers, venture capitalists, customers.
suppliers, customers, advisors, and
consultants. To define what the business plan is,
who prepares it, who reads it, and
B. Who is expected to read the plan can affect its
actual content and focus.
C. Each group reads the plan for different
purposes, so the plan must try to satisfy the
needs of everyone.
D. Three perspectives need to be considered: Discussion point: Consider the business plan
samples gathered at the beginning of the chapter.
1. The perspective of the entrepreneur—the
How do these plans rate on three perspectives?
entrepreneur understands the new venture
better than anyone and should be able to AS SEEN IN BUSINESS NEWS:
The Elevator Pitch
articulate what the venture is all about.
2. The marketing perspective considers the The customer orientation is discussed further in
Chapter 08.
venture through the eyes of the customer,
whether someone would buy the product
or service being offered or not.
7-19
3. The eyes of the investor—the investor

looks for sound financial projections.
E. The depth and detail of the business plan
depends on the size and scope of the
proposed venture.
F. The business plan is valuable to the
entrepreneur and investors because:
In the Press: Jim Clark is a serial entrepreneur
1. It helps determine the viability of the turned venture capitalist. When asked what he
venture in a designated market. looks for in a new company, he is more interested
in good people than a good idea. He says, “A good
2. It gives guidance to the entrepreneur in team can take an average idea and make a great
organizing planning activities. company, but a bad team can take a great idea and
totally screw it up.” (Copeland, Michael V., Malik,
3. It serves as an important tool in obtaining OM, & Schonfeld, Erick “Do This, Get Rich”
financing. Business 2.0, May 2005, pg. 78)
G. Potential investors are very particular about

what should be included in the business plan.
H. The process of developing a business plan
also provides a self-assessment of the
entrepreneur.
1. This self-evaluation is similar to role-
playing, requiring the entrepreneur to
think through obstacles that might prevent It is a good idea to prepare a short version of the
the venture’s success. plan, a “pitch” like the one seen in the As Seen in
Business News section. There may be
2. It also allows the entrepreneur to plan opportunities to entice interest in potential investors
ways to avoid such obstacles. with a quick introduction to your venture.
7-20

VII. HOW DO POTENTIAL LENDERS
To define what the business plan is,
AND INVESTORS EVALUATE THE who prepares it, who reads it, and
PLAN?
A. Because the business plan should address the
needs of all the potential evaluators, software
packages and Internet samples should be used
only to assist in preparation.
B. As the entrepreneur becomes aware of who
will read the plan, changes to it will be
necessary.
1. Suppliers may want to see a business plan
before signing a contract to supply
products or services.
2. Customers may also want to review the
plan before buying the product.
3. The business plan should consider the
needs of these constituencies who may
pay more heed to the experience of the
entrepreneur(s) and their projection of the
marketplace.
C. Potential suppliers of capital will vary in their
needs and requirements in the business plan.
1. Lenders are primarily interested in the
ability of the new venture to pay back the
debt including interest within a
7-21
designated period of time.

2. Banks want facts with an objective In the Press: Not quite sure what you may want to
analysis of the business opportunity and do? David Choi, the assistant director for the Hilton
Center of Entrepreneurship at Loyola Marymount
all the inherent potential risks of the gives his list of the top five up and coming money
venture. makers:
1. Day Spas
3. Lenders focus on the four C’s of credit: 2. Pet Products
3. Learning Centers
a. The entrepreneur’s credit history, or 4. Christian Bookstores
character. 5. Funeral Homes
(Kelleher, Kevin “The Lifestyle Play” Business 2.0
b. Their ability to meet debt and interest November 2004, pg. 139
payments (cash flow). http://money.cnn.com/magazines/
business2/business2_archive/2004
c. The collateral or tangible assets being /11/01/8189338/index.htm)
secured.
d. Equity contribution or the amount of
personal equity that has been invested
by the entrepreneur.
4. It is also important for the entrepreneur to
develop a strong personal relationship
with the loan officer of the bank.
5. Investors provide large sums of capital for
ownership (equity) and expect to cash out
within 5 to 7 years.
a. They will often place more emphasis
on the entrepreneur’s character than
lenders do.
7-22
b. The venture capitalist will play an

important role in management of the
business and wants the entrepreneurs
to be compliant and willing to accept
this involvement.
c. These investors will also demand high
rates of return and will thus focus on
the market and financial projections.
D. If the entrepreneur does not consider the
needs of these sources, the plan may be an
internalized document without consideration
of the feasibility of meeting market goals.
E. Most external advisors and potential investors
ETHICS
are bound by a professional code of ethics Protecting Your
regarding disclosure, and the entrepreneur Business Idea.
should not be deterred from seeking external
advice.
7-23

In the Press: Fred Wilson at Union Square
VII. PRESENTING THE PLAN
Ventures listens to elevator pitches downloaded to
A. Often universities or locally sponsored his iPod. This gives him the opportunity to hear
entrepreneurs pitch their ideas while he’s riding his
business meetings offer an opportunity for
bike to work. At press, he had listened to twelve
selected entrepreneurs to present their and had scheduled one in for more discussion.
business plans in a competitive and structured (Heires, Katherine “Podcasting Meets the Elevator
Pitch” Business 2.0 November 2005 pg. 32
setting.
http://money.cnn.com/magazines/
B. The entrepreneur is expected to “sell” his or business2/business2_archive/2005
/11/01/8362803/index.htm)
her business concept.
C. In many cases an elevator pitch is prepared as
a preliminary to the complete business plan in
Discussion point: Review sample plans. Which
order to illicit interest from potential points would you think are most important for your
investors. “elevator plan” speech? Note: this activity works
well in small groups.
D. Audiences include potential investors who
are given the opportunity to make pointed
questions regarding any of the strategies
conveyed in the presentation.
VIII. USING AND IMPLEMENTING THE

BUSINESS PLAN
A. The business plan is designed to guide the
entrepreneur through the first year of
operations.
1. It should contain control points to
7-24
ascertain progress.
2. There is a tendency among entrepreneurs
to avoid planning. In the Press: Here are some ways to use your
business plan:
3. Planning should be a part of any business 1 To teach yourself about your business.
operation. 2 To evaluate a new venture.
3 To persuade customers to buy from you.
4. Without good planning the employees will 4 To inform suppliers that you are a viable long-
not understand the company’s goals and term customer.
5 To spot trouble early.
how they are expected to perform in their 6 To understand pressure points.
jobs. 7 To attract prospective partners.
8 To attract prospective employees.
5. Bankers say that most businesses fail 9 To be willing to admit the possibility of failure.
because of the entrepreneur’s inability to (These are all explained in depth in the article:
plan effectively. Bangs, David H. “9 Ways to Use Your Business
Plan” Entrepreneur September 27, 2005
6. The entrepreneur can enhance effective http://www.entrepreneur.com/
implementation of the plan by developing startingabusiness/businessplans
/article80098.html)
a schedule to measure programs and to
institute contingency plans. Learning Objective 07
To understand how to monitor
B. Measuring Plan Progress the business plan.
1. Plan projections will typically be made on
a 12-month schedule, but the entrepreneur
should check key areas more frequently.
2. Inventory control. By controlling
inventory, the firm can ensure maximum
service to the customer.
3. Production control. Compare the cost
figures against day-to-day operating costs.
4. Quality control depends on the type of
7-25
production system used.

5. Sales control. Information on units,
dollars, and specific products sold should
be collected.
6. Disbursements. The new venture should
control the amount of money paid out.
7. Website and social media control. With
more and more sales being garnered from
a company’s website and social media
accounts, it is important to continually
evaluate these sources to ascertain their
effectiveness in meeting the goals and
objectives of the plan. In the Press: When should you update your plan?
1. When a new financial period is about to
C. Updating the Plan begin.
2. You need financing or additional financing.
1. Environmental factors—such as the 3. Significant market changes.
economy, customers, new technology, or 4. New or stronger competition.
competitors—and internal factors—such 5. Your firm has or is about to develop a new
product, technology, service, or skill.
as loss of key employees—can change the 6. You have had a change in management.
direction of the plan. 7. Crossing a major threshold (sales, location,
number of employees)
2. It is important to be sensitive to changes 8. Your old plan doesn’t seem to reflect reality
in the company, industry, and market anymore.
(Bangs, David H. “9 Ways to Use Your Business
IX. CONTINGENCY PLANNING Plan” Entrepreneur September 27, 2005 Learning Objective 08
http://www.entrepreneur.com/ To understand the importance of
A. It is very important to be prepared for sudden
startingabusiness/businessplans contingency planning.
changes or disasters that can affect the /article80098.html)
implementation of the business plan.
B. The process for contingency planning will
7-26
depend on the nature of the business but the

following issues need to be addressed:
1. List any factors that can affect the venture.
2. Identify roles and duties of personnel
responsible for carrying out any
contingency plan. Use training and
walkthroughs.
3. Understand the specifics and the goals of
the contingency plan. It should be a step
by step plan, not generalized. Be clear on
any weaknesses.
4. Include details of who should be contacted
and how in the event of a disaster.
5. Databases should be backed up using This list is an overview of things that should be
prepared in advance of any crisis. If there is a
cloud or some other system. crisis the plan should be implemented immediately
6. Media may need to be contacted to protect to avoid any major impact on the future financial
success of the venture.
the reputation of your venture. Identify
who to contact in event of a crisis.
X. WHY SOME BUSINESS PLANS FAIL

A. A poorly prepared business plan can be
Discussion point: It is relatively easy to create a
blamed upon the following factors:
list of goals that do or do not reflect good practice.
1. Entrepreneur’s goals are unreasonable.
2. Objectives are not measurable.
3. The entrepreneur is not fully committed.
7-27
4. The entrepreneur has no experience in the

planned business. In the Press: Top 10 Business Plan Mistakes:
5. The entrepreneur has no sense of potential 1 The plan is poorly written.
2 The plan presentation is sloppy.
threats or weaknesses to the business. 3 The plan is incomplete.
6. No customer need was established for the 4 The plan is too vague.
5 The plan is too detailed.
proposed product. 6 The plan makes unfounded or unrealistic
B. Setting objectives requires the entrepreneur to assumptions.
7 The plan includes inadequate research.
be well informed about the type of business 8 You claim there’s no risk involved in your new
and the competitive environment. venture.
9 You claim you have no competition.
1. Objectives should be specific. 10 The business plan is really no plan at all.
2. They should also be measurable and (Berry, Tim “Top Ten Business Plan Mistakes”
January 4, 2012)
should be monitored over time. http://www.entrepreneur.com/
C. The entrepreneur and his or her family must article222547.html)
make a total commitment to the business to be

able to meet the demands of the new venture.
Investors will not be positive about a venture
that does not have full-time commitment.
D. Lack of experience will result in failure unless
the entrepreneur can gain the needed
knowledge or team up with someone who
already has it.
E. The entrepreneur should also document
customer needs before preparing the plan.
XI. IN REVIEW: SUMMARY.
See “Learning Objectives Revisited” below.
7-28
LEARNING OBJECTIVES REVISITED
Learning Objective 01: To define what the business plan is, who prepares it, who reads
it, and how it is evaluated.
● A business plan is a written document prepared by the entrepreneur that
describes all the relevant external and internal elements involved in starting
a new venture.
● It should be prepared by the entrepreneur; however he or she may consult
many sources.
● The business plan may be read by employees, investors, lenders, suppliers,
customers, and consultants.
● Business plan evaluation:
▪ Lenders are primarily interested in the ability of the new venture to
pay back the debt plus interest focusing on the four C’s of credit.
▪ Investors often place more emphasis on the entrepreneur’s character
than lenders.
● Three perspectives need to be considered:
▪ The perspective of the entrepreneur—the entrepreneur understands
the new venture better than anyone.
▪ The marketing perspective considers the venture through the eyes of
the customer.
▪ The eye of the investor—the investor looks for sound financial
projections.
Learning Objective 02: To understand the scope and value of the business plan to
investors, lenders, employees, suppliers, and customers.
● Suppliers want to see a business plan before signing a contract to supply
products or services.
● Customers want to review the plan before buying the product.
● Employees use the business plan to understand company goals and how they
are expected to perform in their jobs.
● Potential suppliers of capital will vary in their needs and requirements in the
business plan.
▪ Lenders are primarily interested in the ability of the venture to pay
back the debt including interest within a designated period of time.
7-29
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
▪ Banks want facts with an objective analysis of the business

opportunity and all the inherent potential risks of the venture.
▪ Lenders focus on the four C’s of credit: character, cash flow,
collateral, and equity contribution.
▪ Investors provide large sums of capital for ownership (equity) and expect
to cash out within 5 to 7 years.
▪ These investors will also demand high rates of return and will thus focus
on the market and financial projections.
Learning Objective 03: To identify information needs and sources for each critical
section of the business plan.
● Market information: The first step is to define the market.
● Operations information needs: The entrepreneur may need information on
location, manufacturing operations, raw materials, equipment, labor skills,
space, and overhead.
● Financial information needs:
▪ Before preparing the finance section, the entrepreneur should prepare
a budget, including possible expenditures and revenue sources for
the first year.
▪ Revenues from sales must be forecast from market data.
▪ The entrepreneur needs to identify benchmarks in the industry that
can be used in preparing the pro-forma statements.
▪ Some investors require five-year projections.
Learning Objective 04: To enhance awareness of the value of the Internet as an

information resource and marketing tool.
● The Internet can serve as an important source of information in preparing
the business plan.
● Information on industry analysis, competitor analysis, and measurement of
market potential can be located online.
● Internet also provides opportunities for marketing strategy through its
website and social media platforms.
● The entrepreneur can also access competitors’ websites to gain knowledge
of their strategy in the marketplace.
● Information can also be gained by participating in online discussion groups.
7-30
Learning Objective 05: To present examples and a step-by-step explanation of the

business plan.
● The introductory page provides a brief summary of the business plan’s
contents.
● The executive summary should highlight the key points in the business plan.
● The environmental and industry analysis should include discussion of
industry outlook, new project developments, and competitive analysis.
● The description of the new venture should be described in detail including
the product, location, personnel, background of entrepreneur, and history of
the venture.
● If a new venture is a manufacturing operation, a production plan is
necessary.
● The operations plan goes beyond the manufacturing process and describes
the flow of goods and services from production to the customer.
● The marketing plan describes how the products will be distributed, priced,
and promoted.
● The organizational plan section describes the venture’s form of ownership.
● An assessment of risk is important to recognize the potential risks and
prepare a strategy to deal with them.
● The financial plan determines the investment needed for the new venture
and indicates whether the business plan is economically feasible.
● The appendix contains any backup material not included in the text of the
document.
Learning Objective 06: To present helpful questions for the entrepreneur at each stage of
the planning process.
● Critical issues for environmental and industry analysis are included in Table
7-5.
● Questions to consider in describing the venture are included in Table 7-6.
● Issues to consider for the production plan are listed in Table 7-7.
● Questions regarding the organization structure are given in Table 7-8.
Learning Objective 07: To understand how to monitor the business plan.

● The entrepreneur should develop a schedule to measure programs and to
institute contingency plans.
7-31
● Plan projections are typically made on a 12-month schedule.

● Key areas should be checked more frequently.
▪ Inventory control
▪ Production control
▪ Quality control
▪ Sales control
▪ Disbursements
▪ Website and social media control
● It is important to be sensitive to changes in the company, industry, and
market.
Learning Objective 08: To understand the importance of contingency planning.

● It is very important to be prepared for sudden changes or disasters that can
affect the implementation of the business plan.
● The process for contingency planning will depend on the nature of the
business but the following issues need to be addressed:
▪ List any factors that can affect the venture.
▪ Identify roles and duties of personnel responsible for carrying out
any contingency plan. Use training and walkthroughs.
▪ Understand the specifics and the goals of the contingency plan. It
should be a step by step plan, not generalized. Be clear on any
weaknesses.
▪ Include details of who should be contacted and how in the event of a
disaster.
▪ Databases should be backed up using cloud or some other system.
▪ Media may need to be contacted to protect the reputation of your
venture. Identify who to contact in event of a crisis.
KEY TERMS
Assessment of risk: Identifies potential hazards and alternative strategies to meet business
plan goals and objectives
Business plan: Written document describing all relevant internal and external elements and
strategies for starting a new venture
Description of the venture: Provides complete overview of product(s), services, and
operations of a new venture
7-32
Environmental analysis: Assessment of external uncontrollable variables that may impact

the business plan
Financial plan: Projections of key financial data that determine economic feasibility and
necessary financial investment commitment
Industry analysis: Reviews industry trends and competitive strategies
Marketing plan: Describes market conditions and strategy related to how the product(s)
and service(s) will be distributed, priced, and promoted
Organizational plan: Describes form of ownership and lines of authority and
responsibility of members of new venture
Production plan: Details how product(s) will be manufactured
RESEARCH TASKS AND CLASS DISCUSSIONS
The text includes several topics for student research and class discussions. These questions
are open-ended, and the answers will be different for each student. There are no “correct”
answers.
Research tasks:
1. There are many software packages that aim to help entrepreneurs write a
business plan. Research the Internet and select three of these software
packages. What is different about them? How are they similar? How can
they assist an entrepreneur in the preparation of his final business plan?
2. Find five business plans. What are the common topics covered across all
five plans? What are the differences? Choose the one that you believe is the
best written and then describe why you believe it is better than the others.
3. Speak to three entrepreneurs and find out if they had to make a “pitch” to
investors before completing their final business plan. Find out how
important this was to completing their final business plan.
Class Discussion
1. Given the difficulties in accurately predicting the future, is a business plan
useful? Provide three reasons for writing one and three reasons for not
preparing a plan. What is your conclusion and why?
Answer:
7-33
The discussion should focus on the fact that the business plan is often an
integration of functional plans such as marketing, finance, manufacturing,
and human resources. It addresses the integration and coordination of
effective business objectives and strategies when the venture contains a
variety of products and services. It also addresses both short-term and long-
term decision making for the first three years of operation. Thus, the
business plan—or, as it is sometimes referred to, the game plan or road
map—answers the questions, Where am I now? Where am I going? How
will I get there? Potential investors, suppliers, and even customers will
request or require a business plan.
2. What makes an excellent business plan?

Answer:
An excellent business plan should effectively discuss all the issues related to
the new venture: The external and internal environment, the industry
analysis, the description of the venture, the production plan, the operational
plan, the marketing plan, the organizational plan, the assessment of risk, and
the financial plan.
3. Would the entrepreneur be better off spending more time selling his or her
product rather than investing so much time in writing a business plan?
Answer:
The discussion should, however, focus on the advantages of having a
business plan. The business plan—sometimes referred to, the game plan or
road map—answers the questions, Where am I now? Where am I going?
How will I get there?
4. If a business plan is to be used to raise capital, then why would the

entrepreneur want to advertise the firm’s major risks by detailing them in
the business plan?
Answer:
The investors who are planning to invest in the venture would like to have a
detailed report of all the risks of the venture and how the entrepreneur is
planning to deal with it in the course of time. As all business ventures would
have a certain amount of risk involved, the entrepreneur has to perform this
function to raise capital from the investors.
7-34
5. What is the purpose of the business plan if the audience is (a) the
entrepreneur, (b) an investor, and (c) a key supplier? How might the plan be
adapted for these different audiences? Or do you believe that it is better to
simply have one business plan that serves all audiences?
Answer:
Each item in the business plan would be important for someone. E.g. Banks
want facts with an objective analysis of the business opportunity and all the
potential risks inherent in the new venture. If the business plan contains all
the elements (the external and internal environment, the functional elements,
etc.) mentioned in this chapter, it would serve all audiences.
7-35
Another random document with
no related content on Scribd:
The Project Gutenberg eBook of The writings of
Clement of Alexandria, Vol. 2 (of 2)
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.
Title: The writings of Clement of Alexandria, Vol. 2 (of 2)
Author: Saint of Alexandria Clement
Translator: William Wilson
Release date: February 22, 2024 [eBook #73020]
Language: English
Original publication: Edinburgh: T. & T. Clark, 1869
Credits: Wouter Franssen,Karin Spence and the Online

Distributed Proofreading Team at https://www.pgdp.net
(This file was produced from images generously made
available by The Internet Archive)
*** START OF THE PROJECT GUTENBERG EBOOK THE

WRITINGS OF CLEMENT OF ALEXANDRIA, VOL. 2 (OF 2) ***
ANTE-NICENE
C H R I S T I A N L I B R A RY:
TRANSLATIONS OF
THE WRITINGS OF THE FATHERS
DOWN TO A.D. 325.
EDITED BY THE
REV. ALEXANDER ROBERTS, D.D.,

AND
JAMES DONALDSON, LL.D.
VOL. XII.
CLEMENT OF ALEXANDRIA.
VOL. II.
EDINBURGH:
T. & T. CLARK, 38, GEORGE STREET.
MDCCCLXIX.
MURRAY AND GIBB, EDINBURGH,

PRINTERS TO HER MAJESTY’S STATIONERY OFFICE
THE WRITINGS
OF
CLEMENT OF ALEXANDRIA.
TRANSLATED BY
THE REV. WILLIAM WILSON, M.A.,
MUSSELBURGH.
VOLUME II.
EDINBURGH:
T. & T. CLARK, 38, GEORGE STREET.
LONDON: HAMILTON & CO. DUBLIN: JOHN ROBERTSON & CO.
MDCCCLXIX.
CONTENTS.
THE MISCELLANIES.
BOOK II.
CHAP. PAGE
1. Introductory, 1
2. The Knowledge of God can be attained only through Faith, 3
3. Faith not a product of Nature, 6
4. Faith the foundation of all Knowledge, 8
5. He proves by several examples that the Greeks drew from the
Sacred Writers, 12
6. The Excellence and Utility of Faith, 16
7. The Utility of Fear. Objections Answered, 20
8. The Vagaries of Basilides and Valentinus as to Fear being the
Cause of Things, 22
9. The Connection of the Christian Virtues, 26
10. To what the Philosopher applies himself, 29
11. The Knowledge which comes through Faith the Surest of All, 30
12. Twofold Faith, 33
13. On First and Second Repentance, 35
14. How a Thing may be Involuntary, 37
15. On the different kinds of Voluntary Actions, and the Sins thence
proceeding, 38
16. How we are to explain the passages of Scripture which ascribe to
God Human Affections, 43
17. On the various kinds of Knowledge, 45
18. The Mosaic Law the fountain of all Ethics, and the source from
which the Greeks drew theirs, 47
19. The true Gnostic is an imitator of God, especially in Beneficence, 57
20. The true Gnostic exercises Patience and Self-restraint, 60
21. Opinions of various Philosophers on the Chief Good, 71
22. Plato’s Opinion, that the Chief Good consists in assimilation to
God, and its agreement with Scripture, 74
23. On Marriage, 78
BOOK III.
1. Basilidis Sententiam de Continentia et Nuptiis refutat, 84
2. Carpocratis et Epiphanis Sententiam de Feminarum Communitate 86
refutat,
3. Quatenus Plato aliique e veteribus præiverint Marcionitis aliisque
Hæreticis, qui a Nuptiis ideo abstinent quia Creaturam malam
existimant et nasci Homines in Pœnam opinantur, 89
4. Quibus prætextibus utantur Hæretici ad omnis generis licentiam
et libidinem exercendam, 95
5. Duo genera Hæreticorum notat: prius illorum qui omnia omnibus
licere pronuntiant, quos refutat, 102
6. Secundum genus Hæreticorum aggreditur, illorum scilicet qui ex
impia de deo omnium conditore Sententia, Continentiam
exercent, 105
7. Qua in re Christianorum Continentia eam quam sibi vindicant
Philosophi antecellat, 110
8. Loca S. Scripturæ ab Hæreticis in vituperium Matrimonii adducta
explicat; et primo verba Apostoli Rom. vi. 14, ab Hæreticorum
perversa interpretatione vindicat, 112
9. Dictum Christi ad Salomen exponit, quod tanquam in vituperium
Nuptiarum prolatum Hæretici allegabant, 113
10. Verba Christi Matt. xviii. 20, mystice exponit, 116
11. Legis et Christi mandatum de non Concupiscendo exponit, 117
12. Verba Apostoli 1 Cor. vii. 5, 39, 40, aliaque S. Scripturæ loca
eodem spectantia explicat, 121
13. Julii Cassiani Hæretici verbis respondet; item loco quem ex
Evangelio Apocrypho idem adduxerat, 128
14. 2 Cor. xi. 3, et Eph. iv. 24, exponit, 129
15. 1 Cor. vii. 1; Luc. xiv. 26; Isa. lvi. 2, 3, explicat, 130
16. Jer. xx. 14; Job xiv. 3; Ps. l. 5; 1 Cor. ix. 27, exponit, 132
17. Qui Nuptias et Generationem malas asserunt, ii et dei Creationem
et ipsam evangelii Dispensationem vituperant, 133
18. Duas extremas Opiniones esse vitandas: primam illorum qui
Creatoris odio a Nuptiis abstinent; alteram illorum qui hinc
occasionem arripiunt nefariis libidinibus indulgendi, 135
BOOK IV.
1. Order of Contents, 139
2. The meaning of the name Stromata [Miscellanies], 140
3. The true Excellence of Man, 142
4. The Praises of Martyrdom, 145
5. On Contempt for Pain, Poverty, and other external things, 148
6. Some points in the Beatitudes, 150
7. The Blessedness of the Martyr, 158
8. Women as well as Men, Slaves as well as Freemen, Candidates 165
for the Martyr’s Crown,
9. Christ’s Sayings respecting Martyrdom, 170
10. Those who offered themselves for Martyrdom reproved, 173
11. The objection, Why do you suffer if God cares for you, answered, 174
12. Basilides’ idea of Martyrdom refuted, 175
13. Valentinian’s Vagaries about the Abolition of Death refuted, 179
14. The Love of All, even of our Enemies, 182
15. On avoiding Offence, 183
16. Passages of Scripture respecting the Constancy, Patience, and
Love of the Martyrs, 184
17. Passages from Clement’s Epistle to the Corinthians on
Martyrdom, 187
18. On Love, and the repressing of our Desires, 190
19. Women as well as Men capable of Perfection, 193
20. A Good Wife, 196
21. Description of the Perfect Man, or Gnostic, 199
22. The true Gnostic does Good, not from fear of Punishment or hope
of Reward, but only for the sake of Good itself, 202
23. The same subject continued, 207
24. The reason and end of Divine Punishments, 210
25. True Perfection consists in the Knowledge and Love of God, 212
26. How the Perfect Man treats the Body and the Things of the World, 215
BOOK V.
1. On Faith, 220
2. On Hope, 228
3. The objects of Faith and Hope perceived by the Mind alone, 229
4. Divine Things wrapped up in Figures both in the Sacred and in
Heathen Writers, 232
5. On the Symbols of Pythagoras, 236
6. The Mystic Meaning of the Tabernacle and its Furniture, 240
7. The Egyptian Symbols and Enigmas of Sacred Things, 245
8. The use of the Symbolic Style by Poets and Philosophers, 247
9. Reasons for veiling the Truth in Symbols, 254
10. The opinion of the Apostles on veiling the Mysteries of the Faith, 257
11. Abstraction from Material Things necessary in order to attain to
the true Knowledge of God, 261
12. God cannot be embraced in Words or by the Mind, 267
13. The Knowledge of God a Divine Gift, according to the
Philosophers, 270
14. Greek Plagiarisms from the Hebrews, 274
BOOK VI.
1. Plan, 302
2. The subject of Plagiarisms resumed. The Greeks plagiarized from
one another, 304
3. Plagiarism by the Greeks of the Miracles related in the Sacred
Books of the Hebrews, 319
4. The Greeks drew many of their Philosophical Tenets from the
Egyptian and Indian Gymnosophists, 323
5. The Greeks had some Knowledge of the true God, 326
6. The Gospel was preached to Jews and Gentiles in Hades, 328
7. What true Philosophy is, and whence so called, 335
8. Philosophy is Knowledge given by God, 339
9. The Gnostic free of all Perturbations of the Soul, 344
10. The Gnostic avails himself of the help of all Human Knowledge, 349
11. The Mystical Meanings in the proportions of Numbers,
Geometrical Ratios, and Music, 352
12. Human Nature possesses an adaptation for Perfection; the
Gnostic alone attains it, 359
13. Degrees of Glory in Heaven corresponding with the Dignities of
the Church below, 365
14. Degrees of Glory in Heaven, 366
15. Different Degrees of Knowledge, 371
16. Gnostic Exposition of the Decalogue, 383
17. Philosophy conveys only an imperfect Knowledge of God, 393
18. The use of Philosophy to the Gnostic, 401
BOOK VII.
1. The Gnostic a true Worshipper of God, and unjustly calumniated
by Unbelievers as an Atheist, 406
2. The Son the Ruler and Saviour of All, 409
3. The Gnostic aims at the nearest Likeness possible to God and
His Son, 414
4. The Heathens made Gods like themselves, whence springs all
Superstition, 421
5. The Holy Soul a more excellent Temple than any Edifice built by
Man, 424
6. Prayers and Praise from a Pure Mind, ceaselessly offered, far
better than Sacrifices, 426
7. What sort of Prayer the Gnostic employs, and how it is heard by
God, 431
8. The Gnostic so addicted to Truth as not to need to use an Oath, 442
9. Those who teach others, ought to excel in Virtues, 444
10. Steps to Perfection, 446
11. Description of the Gnostic’s Life, 449
12. The true Gnostic is Beneficent, Continent, and despises Worldly
Things, 455
13. Description of the Gnostic continued, 466
14. Description of the Gnostic furnished by an Exposition of 1 Cor. vi.
1, etc., 468
15. The objection to join the Church on account of the diversity of
Heresies answered, 472
16. Scripture the Criterion by which Truth and Heresy are
distinguished, 476
17. The Tradition of the Church prior to that of the Heresies, 485
18. The Distinction between Clean and Unclean Animals in the Law
symbolical of the Distinction between the Church, and Jews,
and Heretics, 488
BOOK VIII.
1. The object of Philosophical and Theological Inquiry—the
Discovery of Truth, 490
2. The necessity of Perspicuous Definition, 491
3. Demonstration defined, 492
4. To prevent Ambiguity, we must begin with clear Definition, 496
5. Application of Demonstration to Sceptical Suspense of Judgment, 500
6. Definitions, Genera, and Species, 502
7. On the Causes of Doubt or Assent, 505
8. The Method of classifying Things and Names, 506
9. On the different kinds of Causes, 508
Indexes—Index of Texts, 515
Index of Subjects, 525
THE MISCELLANIES.
BOOK II.
CHAPTER I.
INTRODUCTORY.
s Scripture has called the Greeks pilferers of the

Barbarian[1] philosophy, it will next have to be
considered how this may be briefly demonstrated. For
we shall not only show that they have imitated and
copied the marvels recorded in our books; but we shall
prove, besides, that they have plagiarized and falsified (our writings
being, as we have shown, older) the chief dogmas they hold, both on
faith and knowledge and science, and hope and love, and also on
repentance and temperance and the fear of God,—a whole swarm,
verily, of the virtues of truth.
Whatever the explication necessary on the point in hand shall
demand, shall be embraced, and especially what is occult in the
Barbarian philosophy, the department of symbol and enigma; which
those who have subjected the teaching of the ancients to systematic
philosophic study have affected, as being in the highest degree
serviceable, nay, absolutely necessary to the knowledge of truth. In
addition, it will in my opinion form an appropriate sequel to defend
those tenets, on account of which the Greeks assail us, making use
of a few scriptures, if perchance the Jew also may listen and be able
quietly to turn from what he has believed to Him on whom he has not
believed. The ingenuous among the philosophers will then with
propriety be taken up in a friendly exposure both of their life and of
the discovery of new dogmas, not in the way of our avenging
ourselves on our detractors (for that is far from being the case with
those who have learned to bless those who curse, even though they
needlessly discharge on us words of blasphemy), but with a view to
their conversion; if by any means these adepts in wisdom may feel
ashamed, being brought to their senses by barbarian demonstration;
so as to be able, although late, to see clearly of what sort are the
intellectual acquisitions for which they make pilgrimages over the
seas. Those they have stolen are to be pointed out, that we may
thereby pull down their conceit; and of those on the discovery of
which through investigation they plume themselves, the refutation
will be furnished. By consequence, also we must treat of what is
called the curriculum of study—how far it is serviceable;[2] and of
astrology, and mathematics, and magic, and sorcery. For all the
Greeks boast of these as the highest sciences. “He who reproves
boldly is a peacemaker.”[3] We have often said already that we have
neither practised nor do we study the expressing ourselves in pure
Greek; for this suits those who seduce the multitude from the truth.
But true philosophic demonstration will contribute to the profit not of
the listeners’ tongues, but of their minds. And, in my opinion, he who
is solicitous about truth ought not to frame his language with
artfulness and care, but only to try to express his meaning as he best
can. For those who are particular about words, and devote their time
to them, miss the things. It is a feat fit for the gardener to pluck
without injury the rose that is growing among the thorns; and for the
craftsman to find out the pearl buried in the oyster’s flesh. And they
say that fowls have flesh of the most agreeable quality, when,
through not being supplied with abundance of food, they pick their
sustenance with difficulty, scraping with their feet. If any one, then,
speculating on what is similar, wants to arrive[4] at the truth [that is]
in the numerous Greek plausibilities, like the real face beneath
masks, he will hunt it out with much pains. For the power that
appeared in the vision to Hermas said, “Whatever may be revealed
to you, shall be revealed.”[5]
CHAPTER II.
THE KNOWLEDGE OF GOD CAN BE ATTAINED ONLY THROUGH FAITH.
“Be not elated on account of thy wisdom,” say the Proverbs. “In all
thy ways acknowledge her, that she may direct thy ways, and that
thy foot may not stumble.” By these remarks he means to show that
our deeds ought to be conformable to reason, and to manifest further
that we ought to select and possess what is useful out of all culture.
Now the ways of wisdom are various that lead right to the way of
truth. Faith is the way. “Thy foot shall not stumble” is said with
reference to some who seem to oppose the one divine
administration of Providence. Whence it is added, “Be not wise in
thine own eyes,” according to the impious ideas which revolt against
the administration of God. “But fear God,” who alone is powerful.
Whence it follows as a consequence that we are not to oppose God.
The sequel especially teaches clearly, that “the fear of God is
departure from evil;” for it is said, “and depart from all evil.” Such is
the discipline of wisdom (“for whom the Lord loveth He chastens”[6]),
causing pain in order to produce understanding, and restoring to
peace and immortality. Accordingly, the Barbarian philosophy, which
we follow, is in reality perfect and true. And so it is said in the book of
Wisdom: “For He hath given me the unerring knowledge of things
that exist, to know the constitution of the world,” and so forth, down
to “and the virtues of roots.” Among all these he comprehends
natural science, which treats of all the phenomena in the world of
sense. And in continuation, he alludes also to intellectual objects in
what he subjoins: “And what is hidden or manifest I know; for
Wisdom, the artificer of all things, taught me.”[7] You have, in brief,
the professed aim of our philosophy; and the learning of these
branches, when pursued with right course of conduct leads through
Wisdom, the artificer of all things, to the Ruler of all,—a Being
difficult to grasp and apprehend, ever receding and withdrawing from
him who pursues. But He who is far off has—oh ineffable marvel!—
come very near. “I am a God that draws near,” says the Lord. He is
in essence remote; “for how is it that what is begotten can have
approached the Unbegotten?” But He is very near in virtue of that
power which holds all things in its embrace. “Shall one do aught in
secret, and I see him not?”[8] For the power of God is always
present, in contact with us, in the exercise of inspection, of
beneficence, of instruction. Whence Moses, persuaded that God is
not to be known by human wisdom, said, “Show me Thy glory;”[9]
and into the thick darkness where God’s voice was, pressed to enter
—that is, into the inaccessible and invisible ideas respecting
Existence. For God is not in darkness or in place, but above both
space and time, and qualities of objects. Wherefore neither is He at
any time in a part, either as containing or as contained, either by
limitation or by section. “For what house will ye build to me?” saith
the Lord.[10] Nay, He has not even built one for Himself, since He
cannot be contained. And though heaven be called His throne, not
even thus is He contained, but He rests delighted in the creation.
It is clear, then, that the truth has been hidden from us; and if that
has been already shown by one example, we shall establish it a little
after by several more. How entirely worthy of approbation are they
who are both willing to learn, and able, according to Solomon, “to
know wisdom and instruction, and to perceive the words of wisdom,
to receive knotty words, and to perceive true righteousness,” there
being another [righteousness as well], not according to the truth,
taught by the Greek laws, and by the rest of the philosophers. “And
to direct judgments,” it is said—not those of the bench, but he means
that we must preserve sound and free of error the judicial faculty
which is within us—“That I may give subtlety to the simple, to the
young man sense and understanding.”[11] “For the wise man,” who
has been persuaded to obey the commandments, “having heard
these things, will become wiser” by knowledge; and “the intelligent
man will acquire rule, and will understand a parable and a dark word,
the sayings and enigmas of the wise.”[12] For it is not spurious words
which those inspired by God and those who are gained over by them
adduce, nor is it snares in which the most of the sophists entangle
the young, spending their time on nought true. But those who
possess the Holy Spirit “search the deep things of God,”[13]—that is,
grasp the secret that is in the prophecies. “To impart of holy things to
the dogs” is forbidden, so long as they remain beasts. For never
ought those who are envious and perturbed, and still infidel in
conduct, shameless in barking at investigation, to dip in the divine
and clear stream of the living water. “Let not the waters of thy
fountain overflow, and let thy waters spread over thine own
streets.”[14] For it is not many who understand such things as they
fall in with; or know them even after learning them, though they think
they do, according to the worthy Heraclitus. Does not even he seem
to thee to censure those who believe not? “Now my just one shall
live by faith,”[15] the prophet said. And another prophet also says,
“Except ye believe, neither shall ye understand.”[16] For how ever
could the soul admit the transcendental contemplation of such
themes, while unbelief respecting what was to be learned struggled
within? But faith, which the Greeks disparage, deeming it futile and
barbarous, is a voluntary preconception,[17] the assent of piety—“the
subject of things hoped for, the evidence of things not seen,”
according to the divine apostle. “For hereby,” pre-eminently, “the
elders obtained a good report. But without faith it is impossible to
please God.”[18] Others have defined faith to be a uniting assent to
an unseen object, as certainly the proof of an unknown thing is an
evident assent. If then it be choice, being desirous of something, the
desire is in this instance intellectual. And since choice is the
beginning of action, faith is discovered to be the beginning of action,
being the foundation of rational choice in the case of any one who
exhibits to himself the previous demonstration through faith.
Voluntarily to follow what is useful, is the first principle of
understanding. Unswerving choice, then, gives considerable
momentum in the direction of knowledge. The exercise of faith
directly becomes knowledge, reposing on a sure foundation.
Knowledge, accordingly, is defined by the sons of the philosophers
as a habit, which cannot be overthrown by reason. Is there any other
true condition such as this, except piety, of which alone the Word is
teacher?[19] I think not. Theophrastus says that sensation is the root
of faith. For from it the rudimentary principles extend to the reason
that is in us, and the understanding. He who believeth then the
divine Scriptures with sure judgment, receives in the voice of God,
who bestowed the Scripture, a demonstration that cannot be
impugned. Faith, then, is not established by demonstration. “Blessed
therefore those who, not having seen, yet have believed.”[20] The
Siren’s songs exhibiting a power above human, fascinated those that
came near, conciliating them, almost against their will, to the
reception of what was said.
CHAPTER III.
FAITH NOT A PRODUCT OF NATURE.
Now the followers of Basilides regard faith as natural, as they also

refer it to choice, [representing it] as finding ideas by intellectual
comprehension without demonstration; while the followers of
Valentinus assign faith to us, the simple, but will have it that
knowledge springs up in their own selves (who are saved by nature)
through the advantage of a germ of superior excellence, saying that
it is as far removed from faith as[21] the spiritual is from the animal.
Further, the followers of Basilides say that faith as well as choice is
proper according to every interval; and that in consequence of the
supramundane selection mundane faith accompanies all nature, and
that the free gift of faith is conformable to the hope of each. Faith,
then, is no longer the direct result of free choice, if it is a natural
advantage.
Nor will he who has not believed, not being the author [of his
unbelief], meet with a due recompense; and he that has believed is
not the cause of his belief]. And the entire peculiarity and difference
of belief and unbelief will not fall under either praise or censure, if we
reflect rightly, since there attaches to it the antecedent natural
necessity proceeding from the Almighty. And if we are pulled like
inanimate things by the puppet-strings of natural powers,
willingness[22] and unwillingness, and impulse, which is the
antecedent of both, are mere redundancies. And for my part, I am
utterly incapable of conceiving such an animal as has its
appetencies, which are moved by external causes, under the
dominion of necessity. And what place is there any longer for the
repentance of him who was once an unbeliever, through which
comes forgiveness of sins? So that neither is baptism rational, nor
the blessed seal,[23] nor the Son, nor the Father. But God, as I think,
turns out to be the distribution to men of natural powers, which has
not as the foundation of salvation voluntary faith.
CHAPTER IV.
FAITH THE FOUNDATION OF ALL KNOWLEDGE.
But we, who have heard by the Scriptures that self-determining

choice and refusal have been given by the Lord to men, rest in the
infallible criterion of faith, manifesting a willing spirit, since we have
chosen life and believe God through His voice. And he who has
believed the Word knows the matter to be true; for the Word is truth.
But he who has disbelieved Him that speaks, has disbelieved God.
“By faith we understand that the worlds were framed by the word
of God, so that what is seen was not made of things which appear,”
says the apostle. “By faith Abel offered to God a fuller sacrifice than
Cain, by which he received testimony that he was righteous, God
giving testimony to him respecting his gifts; and by it he, being dead,
yet speaketh,” and so forth, down to “than enjoy the pleasures of sin
for a season.”[24] Faith having, therefore, justified these before the
law, made them heirs of the divine promise. Why then should I
review and adduce any further testimonies of faith from the history in
our hands? “For the time would fail me were I to tell of Gideon,
Barak, Samson, Jephtha, David, and Samuel, and the prophets,”
and what follows.[25] Now, inasmuch as there are four things in
which the truth resides—Sensation, Understanding, Knowledge,
Opinion,—intellectual apprehension is first in the order of nature; but
in our case, and in relation to ourselves, Sensation is first, and of
Sensation and Understanding the essence of Knowledge is formed;
and evidence is common to Understanding and Sensation. Well,
Sensation is the ladder to Knowledge; while Faith, advancing over
the pathway of the objects of sense, leaves Opinion behind, and
speeds to things free of deception, and reposes in the truth.
Should one say that Knowledge is founded on demonstration by a
process of reasoning, let him hear that first principles are incapable
of demonstration; for they are known neither by art nor sagacity. For
the latter is conversant about objects that are susceptible of change,
while the former is practical solely, and not theoretical.[26] Hence it is

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05: To present examples and a step-by-step explanation of the business plan.

07: To understand how to monitor the business plan.

08: To understand the importance of contingency planning.

CHAPTER OUTLINE AND TEACHING NOTES

OPENING PROFILE—Kara Goldin

II. WHAT IS THE BUSINESS PLAN? Business plan

CHAPTER OUTLINE AND TEACHING NOTES

B. In developing the business plan, the

CHAPTER OUTLINE AND TEACHING NOTES

III. WHO SHOULD WRITE THE PLAN?

CHAPTER OUTLINE AND TEACHING NOTES

IV. SCOPE AND VALUE OF THE

provide a framework for the business

3. Well defined goals and objectives are

CHAPTER OUTLINE AND TEACHING NOTES

subsequent market goals.

planning sections of the business plan.

b. The next step is the assessment of

CHAPTER OUTLINE AND TEACHING NOTES

CHAPTER OUTLINE AND TEACHING NOTES

2. Each item may require some research but

CHAPTER OUTLINE AND TEACHING NOTES

b. 10K reports of similar public

CHAPTER OUTLINE AND TEACHING NOTES

V. WRITING THE BUSINESS PLAN

CHAPTER OUTLINE AND TEACHING NOTES

entrepreneur is attempting to develop.

2. It should be two to three pages in length.

CHAPTER OUTLINE AND TEACHING NOTES

strategies and objectives – See Figure 7.1.

general industry and competitive data.

CHAPTER OUTLINE AND TEACHING NOTES

on the specific market.

CHAPTER OUTLINE AND TEACHING NOTES

will occupy, the entrepreneur should

F. Production Plan Production plan

CHAPTER OUTLINE AND TEACHING NOTES

and services from production to the

CHAPTER OUTLINE AND TEACHING NOTES

1. The organizational plan is the part of the K EY

business plan that describes the venture’s

It is important that the entrepreneur make an

CHAPTER OUTLINE AND TEACHING NOTES

c. The projected balance sheet shows the

CHAPTER OUTLINE AND TEACHING NOTES

b. Secondary or primary research data.

CHAPTER OUTLINE AND TEACHING NOTES

3. The eyes of the investor—the investor

G. Potential investors are very particular about

CHAPTER OUTLINE AND TEACHING NOTES

CHAPTER OUTLINE AND TEACHING NOTES

designated period of time.

CHAPTER OUTLINE AND TEACHING NOTES

b. The venture capitalist will play an