1.2 - Business Planning

Question 1

What are the components of a Business Plan?

Answer 1

Executive Summary, Marketing Plan, Finance Plan, HR Plan, Operational Plan

Question 2

What is an Executive Summary?

Answer 2

A short summary of the main points from a business plan. Includes key objectives, key staff and financial information.

Question 3

What is the Marketing Plan?

Answer 3

Includes market research such as market analysis, competitors research, 4Ps, market mapping and portfolios.

Question 4

What is the Finance Plan?

Answer 4

Includes predictions of a business’ financial projections, financial requirements.

Question 5

What is the HR Plan?

Answer 5

Predicts the staff needs, level of skill and number of staff needed to achieve objectives. Management structure, staff turnover etc.

Question 6

What is the Operational Plan?

Answer 6

Logistics, production, suppliers etc. Shows how the product will be produced and delivered.

Question 7

Name the different sources of information and guidance

Answer 7

Government Organisations, Grant Funding, Privately-run Organisations, University Incubation programmes.

Question 8

Why Business Plan?

Answer 8

-To attract investments (venture capitalists)
-Monitor performance
-Identify potential issues early
-Set objectives + motivate staff
-Identify future financial needs
-Identify competitors / gaps in the market

Question 9

Limitations of a Business Plan

Answer 9

-Small business may not need investments
-Time consuming
-Requires skill / knowledge (may not have or is expensive)
-Dynamic environment (outdated)