2.1.4 Planning

Question 1

What is business plan
And what do you with them

Answer 1

Document which sets out future plans for a business
- owner then may show the bank / investor to ask for finance to help the business grow

Question 2

Why do you write a business plan

Answer 2

To persuade investors will make enough profit to pay back interest
- attract potential investors
- set targets (SMART) and objectives

Question 3

Things included in a business plan

Answer 3

Name
Business idea
Prod / services & market aimed at
4 ps of marketing
Managers and owners etc
Production costs &potential supplier
Premises and financial info
Projections of revenue

Question 4

Purpose of having a business plan

Answer 4

Help set up a new business
Help set business objectives
Outline organisation of business functions

Question 5

What is cash inflow

Answer 5

Income most likely to be sales revenue

Question 6

What’s a cash flow forecast

Answer 6

Day - day runnings - show where the business will have a shortfall of cash
!!! Not ab profit !!!

Question 7

What is cash outflow

Answer 7

Expenditure - how much spent on bills such as wages ,insurance, advertising