Business Planning

Question 1

What is a business plan?

Answer 1

a document setting out the strengths, aims and strategies of a business. It is therefore an important planning tool

Question 2

What are key sections of a business plan?

Answer 2

Financial information, Marketing information, Human Resources, Production,

Question 3

How does a business plan help reduce risk?

Answer 3

motivates staff, clear ideas to shareholders and potential investors, gives real structure, used to secure finance, to obtain advice and support, provides direction for business, allows a business to measure progress, evaluate where finance is needed.

Question 4

What are some limitations of a business plan?

Answer 4

uses capital, takes up time, only a prediction, not flexible, lack of accuracy, too rigid and restrictive, lack of experience, external variables (eg economy change, demand, competitor actions, government legislation change)

Question 5

To what extend does a business plan assure success?

Answer 5

it will be very useful and priceless to any business but never guaranteess success