4 - Planning Flashcards
executive summary
business plan
1 page overview of business purpose and the opportunity
business idea and opportunity
business plan
outline of business concept and idea so stakeholders understand
aims and objectives
business plan
SMART
can measure sucsess against them
market research
business plan
research into the target market, the market and competitors
financial forecasts
business plan
forecasts on costs,revenue profit ect
sources of finance
business plan
how things will be financed and how any borrowings will be repaid
premises and equipment
business plan
the location and rationel of a business
personell
business plan
outlining the personell in the business, their areas and responsibility
buying and production
business plan
how the product will be produced, inclduing details on suppliers
reasosn for business plans
reserach shows that a well planned out business is more likely to sucseed
who may use a business plan
owners - a guide
lenders -how likely are they to suceed
investors - the risk and reward
partners/employees
reasons for cashflow problems
poor credit control
unforseen costs
overtrading
allowing to much trade credit to customers
cash flow forecasting
predicts the inflows and outflows of cash
ways of improving cash flows
must either increase inflows or decrease/slow down outflows
ways of speeding up inflows
- incentivise early payments by offering discounts for early pay
- reduce trade credit given
- sell of stock at a discounted price to free up cash
- inject fresh capital into the business
