2.1.4 planning

Question 1

what is a business plan?

Answer 1

a business plan is a plan that a business produces to state future goals and plans.

Question 2

why is a business plan done

Answer 2

• attract potential investors
• persuade lenders to go and trust a business
• to give owners some direction
• to set SMART targets
• monitor effectiveness of the business

Question 3

what info goes into a business plan?

Answer 3

A business plan includes

-name, product and service, targets , 4P’s of marketing, product costs financial information

Question 4

define a cash flow forecast?

Answer 4

This is a document that predicts the expected inflows and outflows of a business over a coming year based on past data

Question 5

what are some uses for cash flow

Answer 5

• make comparisons at the end of the year with predictions and actual figures
• important part of financial planning
• shows the possible rends and helps a business plan with how to deal with them.

Question 6

limitations of cash flow

Answer 6

• businesses may overinflate inflows on paper to make there business seem more desirable
• predictions it cant take into account external factors
• IT needs to e updated constantly to not be stale and instead be reliable

Question 7

what is a problem with cash flow?

Answer 7

12 months is a=small for analyzing data doesn’t count for concrete evidence

Question 8

What are some benefits of business planning

Answer 8

• helps secure support for funding
• it helps with clarity on different business decisions
  Provides structure and defines business management objectives