2.1.4 Planning 🗓

Question 1

What is the relevance of a business plan? 5)

Answer 1

Provides a clear Outlook and vision onto your future show me liability - help raise finance

forces owners to take an objective - SMART specify measurable attainable realistic and time bound

keeps owner on track by showing a clear direction

provides an action plan to identify key tasks that needed to improve

flags up potential problems

Question 2

What is a business plan?

Answer 2

Document which presents Elementes of the business such as the future plans of the business and financial position and cash flow, profit and loss

Question 3

What are the useful aspects of the business plan

Answer 3

Shows cash flow help monitor it shows production costs financial information

Question 4

What are the downfalls of a business plan?

Answer 4

Business owners may be too fixated in updating and finalising this and forget about other variables in the business

subject to external change - cannot always be relied on

may have been done by an experienced person leads to an accuracy