1.4e Business Plans

Question 1

What is a business plan ?

Answer 1

a document that outlines the details of an entrepreneur’s idea , the financial forecasts of a business

Question 2

Why is a business plan helpful ?

Answer 2

• allows the entrepreneur to collect all relevant information together in a logical manner
• can help track their progress against their original threats
• may be shared with banks or potential investors so it’s important

Question 3

How can a business plan reduce risks ?

Answer 3

• very detailed planning that allows entrepreneur to see what risks may arise
• setting clear objectives and aims
• making financial forecasts so the business can set budgets and monitor spending
• Cashflow forecast to identify times where there may be a negative cash flow