1.2 Business Planning

Question 1

Identify three reasons it’s important to create a business plan:

Answer 1

-to clearly set out aims and objectives
-reduce the risk of failure
-get a bank loan

Question 2

What are five components of a business plan?

Answer 2

-aims and objectives
-marketing plan
-human resource plan
-production plan
-finance plan

Question 3

What might be included in Aims and Objectives of a business plan?

Answer 3

Making profit, expanding the business, increasing market share, surviving.

Question 4

What might be included in the marketing plan of a business plan?

Answer 4

Age, gender and income of target audience

Question 5

What might be included in the human resource plan of a business plan?

Answer 5

Training, recruitment, employee relations.

Question 6

What might be included in a production plan of a business plan?

Answer 6

The resources needed to operate, e.g. workers, equipment, machinery.

Question 7

What might be included in a finance plan of a business plan?

Answer 7

How much is needed, when it is needed and how it will be obtained, e.g. selling shares, obtaining a loan.