1.4.4 Business Plans

Question 1

What is a Business Plan

Answer 1

A Business Plan is a document the Business intends to do

Question 2

What Things are on a business plan

Answer 2

• Business name idea and a (USP) if there is one
• Aims And objectives
• Market Research

Question 3

Give a Advantage Of a Business Plan (3 Marker)

Answer 3

Will help to secure finance, for example getting a bank loan (P) This is because lenders will see the business is organised (S) Therefore the bank will feel confident in the business being able to repay the loan on time (S) this leads to the business being less likely to fail (S)

Question 4

Give a Disadvantage Of a Business Plan (3 Marker)

Answer 4

The plan may be poor quality (P) This could be because of a lack of research and a general lack of experience by the people who wrote it (S) This will lead to sales being overestimated and costs underestimated (1) As a result the business will make poor decisions (S) and therefore the business is likely to fail (S)