THE BUSINESS PLAN

What is a business plan?

A document that outlines what a business does, its goals and how it intends to accomplish it's aims

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Explain how a business plan can benefit entrepreneurs?

Setting up a business: this will help entrepreneurs make sensible decisions, think ahead and acess the risks of various decisions therefore limiting problems.

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Explain how a businesss plan can help raise finance?

Possible investors will be able to get an insight of how the business aims to use their money and can be more likely to invest into the business.

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Explain how a business plan can help a business set objectives?

Having a plan makes its clear to everyone what their aim is and how to achieve. If everyone knows what their objectives are, they may be more motivated and effectivness of actions can be assesed.

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Explain how a business plan can acheieve the coordination of actions?

If a plan includes all resources needed ie raw materials / time frames, this is allow the business to specifically coordinate it's actions to fufil objectives.

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Problems of business planning? State 2

Uncertainty as the business enviroment is constanyl changing therefore risks may increase. Lack of experience from entrepreneurs just entering the business world meaning mistakes can occur.

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Problems of business planning? State 1

Changes ; a business cannot depend upon its business plan to be succesful therefore the pkan needs to be constanly reviewed and updated; time consuming.

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4 ways the problems of business planning can be reduced?

Researching the market thoroughly, if possible; getting advice from experts, planning for a variety of outcomes and regulary updating and adapting the plan.

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THE SECTIONS OF A BUSINESS PLAN PART 1: outline 4 things that should be included within a business plan?

- Personal information of owners eg cv's ( bank security), - an analysis of market including target customers, market size etc. - the firms objectives ( specific targets), - all product details; costs, price, resources, manufacturing etc.

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THE SECTIONS OF A BUSINESS PLAN PART 2 - outline 3 things that a business plan needs to include?

- an explanation of its competitors including how they will compete (USP), Staffing requirements - workers details, wages, ( labour), and - finance ; financial position of business( cash flow, revenue, costs )

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Get Revising

THE BUSINESS PLAN

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