1.4.4 Business Plans

Question 1

Parts of a business plan

Answer 1

Target market
Aims and Objectives
Business Idea
Marketing plan
Cashflow
Revenue, cost and profit forecast
Sources of Finance
Location
Marketing Mix

Question 2

Purpose of a business plan

Answer 2

Provides direction
Supports decision making
Helps establish the viability of the
business
To arrange a bank loan
To seek investment
To help the business be
successful (More than 50% of new businesses fail in first few years)

Question 3

Target market

Answer 3

The market you want to sell to

Question 4

Aims and Objectives

Answer 4

A business aim is the overall target or goal of the business, whereas business objectives are the steps a business needs to take to meet its overall aims

Question 5

Business Idea

Answer 5

What the business is and what it is selling

Question 6

Marketing Plan

Answer 6

How to promote the business

Question 7

Cashflow

Answer 7

Money coming in and out the business

Question 8

Revenue costs and profit forecasts

Answer 8

Predicting How much will be made from sales and how much costs there will be

Question 9

Sources of Finance

Answer 9

Where the funding to start the business will come from

Question 10

Location

Answer 10

Where the business is located and where it will sell to

Question 11

Marketing Mix

Answer 11

Product
Price
Place
Promotion