1.4.4 Business plans

Question 1

9 components of a Business Plan

Answer 1

Business idea
Aims & objectives
Target market
Marketing plan
Forecast revenue, costs & profit
Cash flow forecast
Sources of finance
Location
Marketing mix

Question 2

Advantage of a Business Plan

Answer 2

Prevents Insolvency

Question 3

Disadvantage

Answer 3

Not 100% accurate and can be misleading:Anything can happen within the business world

Question 4

Purpose of a Business Plan

Answer 4

Provides direction

Question 5

5 sources of external finance

Answer 5

Bank loan
Bank overdraft
Crowdfunding
Share capital
Trade credit

Question 6

4 components of a business plan

Answer 6

Market research
Aims and objectives
Financial information, e.g. cash flow forecast
Details of the product / service

Question 7

3 reasons why new business ideas come about

Answer 7

Products becoming obsolete
Changes in the wants and needs of customers
Changing technology

Question 8

2 sources of internal finance

Answer 8

Owner’s personal savings
Retained profit