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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

it provides;
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


business plan

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


identifying market

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


what is a business plan

a formal document that sets out future business goals and helps attract funding for the business idea
set out future plan
turns ideas into successful business
showing it to the bank to get a loan etc..