Business Plan Flashcards
(29 cards)
What is a business plan
I a w d o a b a, s, t-m a f f. I i a r t e w t b p t d a h i p t d i
is a written description of a business’s aims, strategies, target markets and financial forecasts.
It is a roadmap that explains what the business plans to do and how it plans to do it.
Reasons to prepare a business plan
S t t b a t h f t b
I p i a s s c b f
I I a r d w a f a b L
U t t r p
Sets targets to be achieved to help focus the business
• Identifies problems in advance so solutions can be found
• It is a required document when applying for a business loan
• Useful tool to review performance (compare plan to actual performance)
Swot analysis: I t s, w, o a t f t b
S: t t t d w
W: t t t b d b
O: t t b c t a o i f
T: t t c t t b i f
SWOT Analysis: identifies the Strengths, Weaknesses, Opportunities and Threats facing the business.
• Strength: things that the business does well (internal)
• Weakness: things that the business does badly (internal)
• Opportunity: things the business could take advantage of in future (external)
• threat: things that could threaten the business in future (external)
Swot analysis STRENGTHS, Example McDonald’s
S b n
G r
• Strong Brand Name
Global Recognition
Swot analysis WEAKNESS, example McDonald’s
H s t
M s f f w h a b r
High Staff Turnover.
Mainly serves Fast Food which has a bad reputation
Swat analysis OPPORTUNITIES, example McDonalds
O h f o
O n b
Offer healthier food options
Open new branches
Swot analysis THREATS, example McDonald’s
C f o f f
S t o f d
Competition from other fast food e.g.
KFC
• Sugar Tax on fizzy drinks
Business plan layout
1. B n
2. B o b
3. T b t
4. M a m
5. P
6. C a f
7. S o b
8. S a d
- Title: Business Plan for “Business Name”
- Background of the Business
- The Business Team
- Market and Marketing
- Production
- Costings and Finance
- Structure of the Business
- Signed and Dated
background for the business
A a o o t b- w i i s u t d
N a a o b
• Aims and objectives of the business - what it is set up to do
• Name and Address of Business
The business team
T p i i t b
• The people involved in the business (education & work experience)
The market and marketing
D o t m
T c a p s o m
C c I t m
M m
Description of target market
• The current and potential size of market (no. of people)
• Current competitors in the market
• Marketing Mix (Product, Place, Price, Promotion)
Production
L o p a e t b o
P p
• List of premises and equipment the business owns
• Production process (job, batch or mass production)
Costing and finance
H m i c t p i
D o L t b h
A o f n
H w f b r
C f
• How much it costs to produce item
• Details of loans the business has
• Amount of finance (loan) needed
• How will finance (loan) be repaid
• Cashflow Forecast
Structure of business
T o b,
example’s: s t
P L c
P-s
• Type of Business (Sole Trader, Private Limited Company, Partnership)
What does smart stand for
S: d a s, c g
M: i m b p t m w o n t g h b a
A: g a m m L t b r i t a a a a b a t i i a t
R: i m b p t a t g u t r a. I t g i n r, p w n b m b i
T: t g t g a t d t b a b
Specific: Define a specific, clear goal.
Measurable: It must be possible to measure whether or not the goal has been achieved.
Agreed: Goals are much more likely to be reached if they are agreed and accepted by all those involved in achieving them.
Realistic: It must be possible to achieve the goal using the resources (including time) available. If the goal is not realistic, people will not be motivated by it.
Timed: This gives the goal a target date to be achieved by.
What is a sole trader
i a p w o, m a p t m f t b w t a o m a p
is a person who owns, manages and provides the money (capital) for the business with the aim of making a profit. Example hairdresser
What does unlimited liability mean
T m a s t c L e
T a p r f a t b a L I t b
T I a m f r
• This means that a sole trader could lose everything
• They are personally responsible for all the bills and loans in the business
• This is a major Financial Risk
Advantages of sole trader
C: s t h f c o t b a c m d q y a y o b
P: s t c k a t p o t b a t i o o o
S u: i i e a c t s u
Control: Sole Trader has full control over the business and can make decisions quickly
You are your own boss
Profit: Sole Trader can keep all the profit of the business as there is only one owner
Set up: It is easy and cheap to set-up
Disadvantages of a sole trader
K: s t m m a b d b m n h s k o e a o b
F: s o m m i d t e a o 1 p c t t b
L: s t h u l- i t b f t o c l h p p t p f b d
C:t b w n l e w t o d
Knowledge: Sole Trader must make all business decisions but may not have sufficient knowledge of every area of business
Finance: Shortage of money (Capital) makes it difficult to expand as only one person contributing to the business
Cease: The business will no longer exist when the owner dies
Liability: Sole Trader has Unlimited Liability - If the business fails the owner can lose his personal property to pay for business debts
What is private limited company
A b o b b 1 and 149 s. I f o s, m h t d
a business owned by between 1 and 149 shareholders. If only one shareholder, must have two directors.
What is limited liability
T m t t s w o L w h b I I t b. T a n p r F t b a L I t b. T I a s f r
This means that the shareholders will only lose what has been invested in the business. They are NOT personally responsible for the bills and loans in the business. This is a smaller financial risk
Advantages of private limited company
F: L c c e m e a i p h m m f s
C: w a s d t b w s c
L: L c h L L-s w n L t p p t p f t b d
Finance: Limited company can expand more easily as it Profit has more money (capital) - from shareholders
Continuity: When a shareholder dies the business will still continue (continuity of existence)
Liability: Limited company has Limited Liability-shareholders will not lose their private property to pay for the business debts
Disadvantages of private limited company
P: p m b s b a s
C: i i m e t s-u a p L-c d t L r
V: p w a s n o s h L o n s a t r o t b
Profit:Profit must be shared between all shareholders
Cost: It is more expensive to set-up a private limited company due to legal requirements
Vote: People with a small number of shares have little or no say about the running of the business
What is cooperative (co-op)
I a b s u b a r r t b o t g o p w s a c i. I i p w t t h t c
is a business set up by and run for the benefit of the group of people who share a common interest. It involves people working together to help their community. Example swords credit union
