business plans Flashcards
what is a business plan?
a document that outlines the way in which a business will attempt to achieve its objectives- giving a clear idea of its operation and direction.
what is the purpose of a business plan?
-articulate a strategy for starting your business
-provide insight on steps to be taken, resources required for achieving your business goals and a timeline of anticipated results
-summarize the organization’s strategy in order to execute it long term
-secure financing from investors
-help forecast future business demands
what are the main components of a business plan?
-the introduction or overview /executive statement
-the marketing plan
-the operations plan
-the human resources plan
-the financial plan
what is ‘the introduction or overview/executive statement’ component of a business plan?
this provides an overview of the businesses aims, objectives and strategy, and is evidence that the proposal is viable. it sets out how the business is going to be run.
what is ‘the marketing plan’ component of a business plan?
market research carried out needs to establish the size of the market, the needs of the customers and the level of competition. when market research findings have been examined then the marketing plan can be prepared.
what is ‘the operations plan’ component of a business plan?
includes details of where the business will be located, production methods and any equipment needed. plus, information on the costs of production and where the business will buy supplies may be included.
what is ‘the human resources plan’ component of a business plan?
the number of employees and the skills, experience and qualifications they require will be outlined. any management team will also be identified.
what is ‘the financial plan’ component of a business plan?
a variety of forecasting will be necessary:
-a sales forecast indicating potential revenue
-a cash flow forecast for the first 12 months
-a profit and loss and balance forecast for the end of the first year
-a break-even analysis
in addition, information on where the finance for starting and running the business will come from, indicating the available start-up capital as well as any potential borrowing.
importance of a business plan
-sets out their objectives and strategy
-outlines marketing strategy
-clear idea of direction and operation
-helps to convince banks and investors
-highlights strengths and identifies possible problems
-useful as a monitoring tool
where can entrepreneurs get information and guidance from?
-friends and family
-governments
-business advisors
-competitors
-industry data
-market research
-the princes trust
-start up donut (website)
-business gateway (website)
-shell livewire
