1.2 Business Planning

Question 1

Why should a business create a business plan?

Answer 1

•more likely to get investors
•reduces risk of failure because descions are based on research e.g. choosing the correct price to charge after researching manufacturing
•to identify resources needed

Question 2

What should a business plan include?

Answer 2

•aims and objectives
• a marketing plan
• a human resource plan
•a production plan
• a finance plan

Question 3

Why should a business plan include aims and objectives?

Answer 3

•to set out what you plan to achieve
•to plan out SMART objectives e.g. to make £xm profit by the end of the year