Business plan Flashcards
(16 cards)
What is a business plan ?
Forecast of business operations
What 5 plans does a business plan include ?
- Marketing plan
- Operational plan
- Financial plan
- Human resources plan
- Executive plan
What is a marketing plan ?
Includes market research & medium-long term plan for achieving objectives
What is an operational plan ?
Shows how product will be produced & delivered to customers in target market
What is a financial plan ?
Prediction of income from sales & expenditure from costs over period of time
What can a financial plan help a business to assess ?
Short-medium-long term needs in terms of finance
What is a human resources plan ?
Predict staff needs, skills & number of staff to achieve objectives, & predictions of staff turnover & managers required to supervise employees
What is an executive plan ?
Short summary of main points from detailed plan
What is a forecast ?
Calculation / estimate of how business will perform in the future in terms of financial or other measurements of success
What are 2 reasons business plans important ?
- Investors/lendors want detailed forecasts
- Lendors/investors assess risks of investment & ability to pay back
What are 4 advantages of a business plan ?
- Reducing risk to investors = lower interest on loans/ smaller shares to venture capitalists
- Can look logically & methodically at aims & objectives
- Can be compared to actual progress
- Problems can be identified
What are 2 disadvantages of a business plan ?
- Little use
- Unrealistic & fail to follow
What makes a good business plan ?
Regularly amended from unexpected problems
What are 2 main sources of guidance for entrepreneurs ?
- Government organisations
- Privately run organisations that support businesses
What guidance do government organisations offer ?
Free advice & grants
What guidance do privately run organisations offer ?
Free advice & services leading to paid ones with networking & training
