1.6 - Business Planning Flashcards
Business plan
A document setting out what a business does and what it hopes to achive in the future
Business planning
The process of producing a business plan
Uncertainty
Occurs where there is a lack of information about a situation. This means outcome is very difficult to predict
Risk
The possibility of somthing going wrong
Revenue
The income a firm recievesfrom selling its goods or services. Its measured by the number of units sold multiplied by the price
Total costs
Are fixed costs Plus variable costs
Fixed costs
Are those costs which dont change when a business changes its outco,d
Variable costs
The costs that vary directly with the business level of output
Main sections of a business plan
background information on the founders and investors and their previous
experience
The firms objectives
Profit calculation
Revenue-total costs
