Business Planning

Question 1

Why is business planning important?

Answer 1

1. Sets clear objectives & goals.
2. Helps managers make informed and strategic decisions.
3. Enhances risk management

Question 2

What should be included in a business plan?

Answer 2

Business description
Market analysis
Competition analysis
Detail of company structure
Objective & goals
Strategy

Question 3

What is your company’s business plan?

Answer 3

Short term - complete outstanding AM.
Long term - realise value in the completion of AM. (turn short term income into long term income)

Question 4

What is a SWOT analysis?

Answer 4

Strengths, Weaknesses, Opportunities, and Threats.
It helps organisations understand internal and external factors that can impact success and make informed decisions.

Question 5

What are three business types?

Answer 5

Sole traders - one owner, unlimited personal liability, taxed as personal income.
Limited companies - Ltd or PLC, legally distant from shareholders/directors, limited liability
Limited Liability Partnerships - owned by two or more partners, limited liability, participate in management.