Flashcards in unit 1 business plans Deck (22):
what is a business plan
an ideas for a business is not enough to start one . an entrepreneur will need to think of a plan. a business plan is a document setting out details of the business opportunity and how it will be achieved.
what does a business plan have
the details of goods and service .
aims and objectives
financial information an cash flow forecast outlining the money coming in and going out of the business
why do they need a business plan
to identify how much money is needed to start a business. it is vital to raise funds from investors or banks
the capital or money that a business needs in order to carry out its plans.
generating a level of revenue that is greater than the costs incurred by a business over a period of time
an individual who is good at spotting business opportunities and takes risks
a document that sets out a business opportunity and how it will be achieved
cash flow forecast
a documents showing the expected cash inflows and outflows in coming months
long term goals of a business
what happens if you do not make a business plan
it may not identify a business plan it may not identify the correct resources or staff it needs.
risks will increase, banks may deem you as unreliable and you may fail the target audience
run out of money waste resources
benefits of business plan
a business plan it may identify the correct resources or staff it needs.
risks will decrease, banks may deem you as reliable and you get the target audience
achieving business aims and objectives
the business plan includes aims in order to succeed. they will do research and consider what it takes to achieve it
sets out problems before it arises
resources and help
the business will outline the things that they need e.g workers, premise.
investors and banks will see them as prepared and it hints to how much capital the they need
business plans can help to start their target audience and they will be ready to cater them.
banks will trust them for they have an audience
helping with finance
business pl;an tells them how many will be spent and hoe it will be repaid on time
content of business plan - competitors
are their any competitors with the same product like us and how can we be different in order to beat them
content of business plan - target market
certain group that business can cater to.
it should be clear on the target marker on who they are selling their products or service
content of business plan - finance
cost of setting a business
what do they need to buy
where will they get their money from?
content of business plan - market research
how it will be sold
whether consumers will like to buy it or use their service
content of business plan - business ideas
it can be a new idea or existing product,.
it need to be practical and stands alone a chance of selling and being successful
purpose of plan
to succeed and reduce risk