23 Planning

Question 1

Why is planning important?

Answer 1

-Likely to be more successful
-Reduce risks
-less stress

Question 2

The contents of a business plan

Answer 2

-Executive summary: summary of whole plan. Describes how business can be exploited, the marketing & sales strategy, operations and finance.

-Elevator pitch: short speech (1-2 mins) introducing business (name, aims, what products sells, competitors).

-The business and it’s objectives: should state; name of business, trading address, legal structure and objectives.

-Business opportunity: explain what product business is gonna sell, especially if it’s very technical.

Question 3

Contents of a business plan 2.0

Answer 3

-Owners’ background: especially for potential investors.

-The market: Size and growth of market, type of customers, competition

-personnel: How many employees are their right know and how many the are gonna need when expanding.

-Premises and equipment: Where to trade and resources.

Question 4

Contents of a business plan 3.0

Answer 4

-Costing and finance: Work how much everything is gonna cost and raise finance.

-Financial forecast: sales forecast, cash flow, profit and loss, break even analysis.

-SWOT analysis: Internal (S) strengths, (W) weaknesses, (O) opportunities, (T) threats.

Question 5

The purpose and relevance of a business plan

Answer 5

-Work to an objective
-Have an strategy
-Show investors and banks that you’re trustworthy.