102 business plans

Question 1

what is a business plan , what is included ?

Answer 1

a statement which outlines the way in which a business will attempt to achieve its objectives -giving clear idea of its operations and objectives
-includes the overview or executive summary, the marketing plan ,the operations plan , the Human Resources plan , the Financial plan

Question 2

describe the components included in a business plan

Answer 2

~the overview-entrepreneur should describe business idea and describe opportunities
~marketing plan-includes market research , pricing strategies, how/where it will be sold , size of market , competition ext
~operations plan-includes where business will be located , equipment needed , suppliers ext
~Human Resources-includes number of employees , qualifications required, management team will be identified
~financial plan - consists of cash flow forecast, sales forecast , break even

Question 3

benefits of a business plan (+)

Answer 3

-presents owners with a clear set of instructions and direction- helps run it smoothly
-they can check progress against objectives , monitor cash flow and take action when objectives are not being achieved -can clearly see when something isn’t going right
-needed for potential investors when seeking finance from banks

Question 4

drawbacks of a business plan (-)

Answer 4

-an inaccurate business plan with unachievable objectives can give entrepreneurs false hope-failed investments
-some product/services eg.in fast moving market, could make it harder to predict sales and costs accurately
-time consuming
-no business can be guaranteed success however good the business plan is

Question 5

identity the main sources of information and guidance available to entrepreneurs

Answer 5

how can someone get help in making a business plan ?
-government, banks and business finances, business support charities eg.princes trust , investors