Business Plans

Question 1

What is a business plan

Answer 1

a document setting out the nature of a business, information about its various functional areas, its future objectives, and strategies for achieving its objectives.

Question 2

Benefits of business plan

Answer 2

clarifies the objectives of a business and how the business intends to achieve these objectives. Help to secure finance. check progress against their objectives, act as a guide to help to make decisions. provide directions so that it can navigate better and continue heading in the right direction. More likely to survive

Question 3

Drawbacks of a businesses plan

Answer 3

May not be realistic
Needs sufficient meaningful research and data to inform decisions
May not value the plan and not take it seriously
external factors could also influence business performance. it does not, by itself, guarantee success.

Question 4

Executive summary (overview)

Answer 4

briefly describe the business opportunity that is to be exploited. summarise the strategies that will be employed and how finance will be obtained

Question 5

Objectives (SMART)

Answer 5

goals/results that a business wants to achieve.
Specific
Measurable
Achievable
Realistic
Time limited

Question 6

Marketing plan

Answer 6

information about the target market/competition. market research, marketing decisions regarding the marketing mix (price, place, product, promotion), marketing budget and marketing objectives

Question 7

Operations plan

Answer 7

details of where the business will be located, production methods and any equipment required. costs of production and where the business will buy supplies

Question 8

Human resources plan

Answer 8

Details of the owner(s) and management team will be outlined along with their credentials and experience. number of employees and their skills, experience and qualifications

Question 9

Financial plan

Answer 9

sales forecast, a cash flow forecast, profit and loss and balance sheet forecasts, and breakeven analysis. financial position and requirements will be outlined, any potential borrowing

Question 10

Importance of business plans

Answer 10

• examine all aspects of business helping to make better decisions
• outlines objectives and strategies to achieve them. Likely to do what is set out
• help gain much needed finance to start or expand
• problems may be highlighted and therefore dealt with in advance

Question 11

Where can entrepreneurs gain info

Answer 11

The Prince’s Trust, Business Gateway, GOV.UK, banks, friends and family, other entrepreneurs, competitors, market research data.