2.1.4. Business Planning

Question 1

What is a Business Plan?

Answer 1

A look into the future of the business

Question 2

Why write a business plan?

Answer 2

• to persuade lenders that the business will make enough profit to be able to pay back interest and loan capital on any finance taken out
• attract potential investors to their business
• to guide the owners direction
• set SMART targets and objectives

Question 3

What goes in a business plan?

Answer 3

1) An Executive Summary (brief overview of plan)

2) The business opportunity (what’s been
sold+how much its sold for)

3) Buying + Production (suppliers? How much?)

4) Financial Forecasts (sales forecast, break even analysis, cash flow forecast)

5) The Business + its objectives ( name,address, aims, objectives, ownership)

6) The market ( size , target, competition)

7) Personnel ( employees? Who will run business? skills + qualifications)

8) Premises + Equipment (equipment? Premises? How will it be financed?)

9) Finance ( where will it start up? And run business from)