Business Plan Cheat Sheet 2026

The 30 highest-yield Business Plan facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What does Customer Acquisition Cost (CAC) measure? → The total cost spent to gain one new customer through marketing and sales
2. What role do key performance indicators (KPIs) play in a marketing strategy? → They measure the progress of marketing activities toward strategic goals
3. What is an angel investor? → A high-net-worth individual who provides early-stage capital in exchange for equity
4. What does a Porter's Five Forces analysis evaluate? → Competitive intensity and attractiveness of an industry
5. What is a capital expenditure (CapEx) in a business plan? → Funds spent on long-term assets like equipment or property
6. ________ the advantages and disadvantages of any businesses that compete with yours, and search for market opportunities. → Evaluate
7. Without a business strategy, organizations are more likely to fail, according to study. → True
8. In financial projections, what is the break-even point? → When total revenue equals total costs
9. What does 'fulfillment process' describe in an operations plan? → The steps taken to receive, process, and deliver customer orders
10. What is a go-to-market (GTM) strategy? → A plan for how a company will launch a product and reach its target customers
11. What is a Unique Selling Proposition (USP)? → The specific benefit that makes a company's offering stand out from competitors
12. In a SWOT analysis used for marketing strategy, what does the 'T' stand for? → Threats
13. What does 'liability protection' mean for LLC or corporation owners? → Personal assets are legally protected from business debts and lawsuits
14. What is a customer persona in marketing strategy? → A semi-fictional profile of an ideal customer based on research and data
15. A food truck owner testing recipes at farmers markets before writing a full plan is practicing what? → Market validation
16. Which funding source described in a business plan requires giving up ownership shares in exchange for capital? → Equity financing from angel investors
17. When projecting sales for a brand-new product with no history, which forecasting approach is most defensible in a business plan? → Bottom-up forecasting built from realistic customer acquisition assumptions
18. What does 'runway' mean for a startup in financial terms? → How long the company can operate before running out of cash
19. What is the 'hook' in an executive summary? → An opening statement that grabs the reader's attention
20. A plan's milestone schedule states 'reach 1,000 paying subscribers by Q3.' This goal is effective mainly because it is: → Specific, measurable, and time-bound
21. What does a value proposition explain in a business plan? → Why customers should choose your product over alternatives
22. What does TAM stand for in market analysis? → Total Addressable Market
23. Which financial statement tracks the flow of cash in and out of a business? → Cash flow statement
24. You should describe your products and services and discuss the market that you are _____ → Targeting
25. A projection showing best-case, worst-case, and expected outcomes is called what? → Scenario analysis
26. In financial projections, which statement shows a company's assets, liabilities, and owner's equity at a single point in time? → Balance sheet
27. What is market segmentation? → Dividing a broad market into subgroups with similar needs or characteristics
28. Which ratio would a lender most likely examine in a business plan to judge the company's ability to cover short-term obligations? → Current ratio
29. What is a 'lean' business plan best known for? → Being a short, one-page summary of strategy
30. What does a staffing plan in a business plan outline? → Current and future hiring needs, roles, responsibilities, and associated labor costs