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A business plan/business roles Flashcards

1
Q

What is a business plan

A

a formal, written plan, gives detailed description of how a business plans to achieve its goals

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2
Q

components of a business plan

A
  • info abt the business
  • a production plan
  • marketing plan
  • management plan
  • financial plan
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3
Q

format of a business plan

A
  • front cover
  • table of contents
  • goods/services offered
  • business’ goals
  • ownership of business
  • production plan
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4
Q

front cover of business plan incl

A
  • logo
  • name of business
  • your name + title/position in the business
  • date the plan was made
  • slogan
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5
Q

table of contents in a business plan incl

A
  • whats in business plan
  • tells readers where to find info
  • makes life easier
  • (basically what any table of contents does)
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6
Q

description of goods and services offered by the business in business plan incl

A
  • describes the nature of the business
  • goods and services offered by the business
  • what you think the demand for your goods/services will be
  • where is business
  • what makes stuff unique
  • luxury/budget goods?
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7
Q

goals in business plan incl

A
  • gives the vision statement
  • ^ states what business plans to achieve medium/long term
  • ^ helps managers choose best actions to achieve business’ goals
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8
Q

ownership of the business in a business plan

A
  • business name
  • type of ownership (partnership, sole trader, close corp, company)
  • where business’ trading happens/ where its based
  • name of owner/owners
  • brief description of owners experience
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9
Q

3 types of production in a business plan

A
  • batch production.
  • mass production
  • job production
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10
Q

batch production definition, examples

A

the products are made as specified groups or amounts, within a time frame.
e.g
Baked goods.
Clothing.
Computer chips.
Computer software.
Electrical goods

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11
Q

mass production definition, examples

A

Is the production of large amounts of standardised products in a constant flow
canned goods.
over-the-counter drugs.
household appliances.

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12
Q

job production definition, examples

A

Job production, sometimes called once-off production, involves producing custom work.
Examples
building ships
bridges
buildings

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13
Q

the marketing plan - 4 p’s

A
  • product
  • price
  • place
  • promotion
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14
Q

4 p’s in detail

A
  • product - what
  • price - how much
  • place - where
  • promotion - promote
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15
Q

what does the marketing plan have to contain?

A
  • explain whats unique abt product
  • how to appeal to customers needs/wants
  • your aim for what you want to achieve from your marketing plan
  • target group
  • market research
  • competitors, how to stay ahead
  • how you will advertise product, details of brand
  • goals you want to achieve and the time in which you strive to achieve them
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16
Q

The management plan

A
  • tells potential investors abt business
  • by looking at management plan, investors can see if managers have skills/experience to make business succeed
  • names of managers + their experience, knowledge, skills
  • says who will run business/ who will manage various areas of the business
  • contain CV of all management staff
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17
Q

SWOT analysis (what does it stand for)

A
  • Strenghts
  • Weaknesses
  • Opportunities
  • Threats
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18
Q

SWOT analysis (in detail)

A
  • Strengths
    competitive adv. you have over your competitors
  • Weaknesses
    opp. of strengths
  • Opportunities
    situations/ things to give you adv. over your competitors
    Threats
  • harm your business, give comp. leverage
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19
Q

what does your swot analysis help to do?

A
  • identify things to make ur business succeed
  • helps find out where youre going wrong
  • identifies where to improve
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20
Q

Financial plan

A
  • shows pot. investors that business is fine financially
  • make the financial goals final
  • info of all capital
  • fixed/variable costs
  • break even point
  • determines mark up + profit percentage.
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21
Q

COVER PAGE PURPOSE VS ELEMENTS TO INCLUDE

A

PURPOSE

• Looks professional
• First impression that the person
who reads the plan is going to
get from your business

ELEMENTS TO INCLUDE

• Name of the business
• Logo and slogan of the
business
• Owner’s name
• Physical address of the
business
• Date of the business plan

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22
Q

INDEX PAGE PURPOSES/ELEMENTS TO INCL

A

PURPOSE
• Lists all the sections of the business plan

ELEMENTS TO INCLUDE

• Page number of each section

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23
Q

DESCRIPTION

A

• Tells the reader what business does
• Includes the vision, mission, goals & objectives
• Structure of the business
• Details about the product or service
• Legal requirements
• Vision
• The long-term goal
• Mission
• how you hope to achieve your vision
• goals to provide direction for the
business
• Short-term objectives to achieve the long-term goals
• Structure of the business
• Includes the form of ownership
• Reasons for the form of ownership
• Legal requirements of the business
• Detailed description of product or service

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24
Q

The PURPOSE of the EXECUTIVE SUMMARY

A

• An executive summary is an overview of a business plan.
• Its purpose is to summarise the key points of a document for its readers, saving them
time and preparing them for the rest of the plan.
• It must capture the reader’s attention, if not the plan will be set aside unread.

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25
Q

ASPECTS THAT MUST BE INCLUDED in the executive summary

A

• The business’s name, location, and contact information.
• A brief description of your product or service and why it’s necessary.
• A description of your target market or the people you think will spend money on your
idea.
• The reasons for writing a business plan
• The size of the business, sales forecasts and profit margins.
• Other details such as stakeholders, funding needed and often an exit strategy.

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26
Q

The choice of ownership depends on:

A

• the way CAPITAL will be raised;
• how PROFIT AND LOSSES will be shared;
• the REGISTRATION formalities;
• and the CONTINUITY of the business.

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27
Q

Different TYPES OF LEGAL REQUIREMENTS of a business

A

CIPC

• All forms of companies must register with the Companies and
Intellectual Property Commission (CIPC)
• New inventions and patents must be registered with CIPC

SARS

• Register with the South African Revenue Service (SARS) to fulfill
tax obligations
• Most businesses must also register as VAT vendors
• UIF registration can be done on form UF8 at any SARS office or
online.

LOCAL
MUNICIPALITY

• Businesses selling or supplying meals or perishable food to eat
will need a license from the local municipality to do so.

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28
Q

The IMPORTANCE OF A MARKETING PLAN

A

• Explains how the product or service of the business will be marketed.
• Business must learn as much as possible from their potential customers.
• The marketing plan will indicate how the goods will be marketed to its target market.
• The marketing plan will also include the amount of money to be spend on
advertising and promotion.
• The proposed pricing of the goods and services of the business must be included.

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29
Q

The IMPORTANCE OF MARKET RESEARCH

A

• Aims to understand the reasons why consumers will buy a certain product or service.
• Businesses must gather data on the customers by observing the market, asking clients
to complete questionnaires.
• Analyse the data and use the information to make informed decisions.

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30
Q

The MEANING OF A MARKETING MIX with specific reference to the 7p’s.

A
  1. PRICE • One of the most difficult aspects to determine.

• Charge the most appropriate price.
• Needs to be affordable to the customers.
• Must allow the business to cover costs and make a profit.
• Price charged by competitors must also be taken into
consideration.

  1. PLACE

• Refers to where the goods and services are sold.
• Location is essential for any business.
• Good access to the product or service will increase the sales.
• Also refers to how the product is distributed.

  1. PRODUCT

• Refers to the actual products or services.
• Essential to keep customers happy with your product or service.
• Must be different from those of the competitors.

38
Identify COMPETITORS from doing a market research and explain the STRATEGIES that you
will use to overcome competition in the market.
• Competitors are all businesses that sell similar products or render similar services and
who have the same target market
• Entrepreneurs must have a very good idea of their competitors.
• Taking note of your competition can improve your own business and give your
business the competitive edge.
• Businesses must use the latest technology and production methods to keep ahead of
the competitors.
• Business must also be aware of market trends.
• Note the SWOT analysis of competitors and improve on it.
Explain the concept of the FINANCIAL PLAN
The financial plan gives a detailed description of the entrepreneur’s financial
contributions, the funding requirements, projected budget and cash flow statements.
4. PROMOTION • Essential to identify how you are going to make your customers

and the target market aware of your products.
• How is the business planning to market and advertise the
product?
• Business must decide which method will best reach the target
market.

  1. PEOPLE • Includes all the people that are in some way involved in or who

have an impact on the business.
• People represent the business and make decisions.
• Staff can affect the success of the business.

  1. PHYSICAL
    ENVIRONMENT

• Refer to the environment where the business is located
• Environmental protection must be taken into account
• Cleanliness and health in and around the building -
consumers need to feel safe
• All facilities must be in working condition

  1. PROCESS

• Describes the way in which the marketing and sales processes
are carried out.
• The simpler the process, the better.
• Use technology to make processes easier.

31
Q

Identify COMPETITORS from doing a market research and explain the STRATEGIES that you
will use to overcome competition in the market.

A

• Competitors are all businesses that sell similar products or render similar services and
who have the same target market
• Entrepreneurs must have a very good idea of their competitors.
• Taking note of your competition can improve your own business and give your
business the competitive edge.
• Businesses must use the latest technology and production methods to keep ahead of
the competitors.
• Business must also be aware of market trends.
• Note the SWOT analysis of competitors and improve on it.

32
Q

Explain the concept of the FINANCIAL PLAN

A

The financial plan gives a detailed description of the entrepreneur’s financial
contributions, the funding requirements, projected budget and cash flow statements.

33
Q

Outline/Discuss/Explain the COMPONENTS OF THE FINANCIAL PLAN

A
  1. SOURCES OF
    FINANCING

• Requires a detailed explanation of financing needed for
your business
• Financial contribution of the entrepreneur is stated
• Loans from investors or financial institutions
• The interest rate on the loan, period of repayment and
the due date of the loan should be stated

  1. CASH FLOW
    STATEMENT

• Indicates how much money was received and spent
within a certain period

  1. PROJECTED
    INCOME
    STATEMENT

• Determines whether the business will make a profit or a
loss
• Formula: Revenue – Expenses = Profit or Loss
• The sales prediction for the first year is given
• Highlights expenses on a monthly basis

  1. BALANCE SHEET

• The statement shows the estimated worth of the business
• Assets = Owners’ Equity + Liabilities
• Assets are the possessions of the business
• Owner’s Equity refers to the money provided by the
owner(s) to start the business
• Liabilities refer to the money owned by the business

  1. PRODUCT
    COSTING

• All the costs involved in the business process

  1. PRODUCT
    PRICING

• Detailed description of how the price of the product and
service were determined

  1. BREAKEVEN
    ANALYSIS

• Calculating the point at which income from sales is equal
to the expenses of the business
• After this point the business starts making a profit

34
Q

The meaning/definition of SOCIAL RESPONSIBILITY

A

• An ethical view point that says every individual/organization has an obligation to
benefit society as a whole.
• The responsibility of every citizen individual/organization to contribute towards the
well-being of the community and the environment in which they live.

35
Q

CORPORATE SOCIAL RESPONSIBILITY/CSR
MEANING of CSR

A

• The continuing commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the local community and
society at large.
• Corporate Social Responsibility/CSR is the way a business conducts its operations
ethically and morally, regarding the use of human, physical and financial resources.
• Corporate Social Responsibility is an obligation required by law and benefits both
business and society.

36
Q

Recommend / Suggest initiatives / strategies BUSINESSES can take to address socio-
economic issues.

A

Initiatives/STRATEGIES to deal with HIV/AIDS
• Train counsellors to provide counselling to infected and affected employees.
• Develop counselling programmes for infected and affected employees.
• Conduct workshops on HIV/Aids programmes or campaigns.
• Roll out anti-retroviral (ARV) treatment programmes for the infected employees.
• Encourage employees to join HIV/Aids support groups.
• Develop strategies to deal with stigma and discrimination.
• Participate in the HIV/Aids prevention programmes implemented in the community.
• Support community based organisation’s HIV/Aids initiatives.

37
Q

Initiatives/STRATEGIES to deal with UNEMPLOYMENT

A

• Provide skills development programmes through learnerships.
• Offer bursaries to the community to improve the level of education.
• Create jobs for members of the community.
• Provide entrepreneurial programmes that can promote self-employment.
• Support existing small businesses to create more employment opportunities.

38
Q

Initiatives/STRATEGIES to deal with POVERTY

A

• Invest in a young starting SME that can be a business competitor, buyer or supplier.
• Attract the best employees by being socially responsible and offering the best
volunteering programs.
• Support poverty alleviation programmes that are offered by the government.
• Donate money or food parcels to local NGO’s.

39
Q

Explain the meaning of CREATIVE THINKING.

A

The ability to think of original, varied new ideas or new approaches

40
Q

Discuss/Describe/Explain the ADVANTAGES/BENEFITS of creative thinking in the workplace.

A

• Better ideas are generated.
• Improves motivation amongst staff members.
• May give the business a competitive advantage if unique strategies are implemented.
• Complex business problems may be solved.
• Creativity may lead to new inventions which improves the general standard of living.
• Productivity increases as management or employees may quickly generate multiple
ideas which utilises time and money more effectively.
• Managers and employees have more confidence as they can live up to their full
potential.

41
Q

Explain how businesses can use creative thinking to GENERATE ENTREPRENEURIAL
OPPORTUNITIES

A

• Encourage staff to come up with new ideas/opinions/solutions.
• Encourage alternative ways of working/doing things.
• Respond enthusiastically to ideas
• Make time for brainstorming sessions
• Place suggestion boxes around the workplace
• Train staff in innovative techniques

42
Q

Discuss how businesses can use creative thinking to SOLVE BUSINESS PROBLEMS.

A

• Products and services can be marketed creatively.
• Managers can come up with creative strategies for the business.
• Managers can motivate and manage staff creatively.
• Employees can come up with creative solutions to all kinds of problems.
• Creative public relations strategies can be designed and implemented.
• New products or services can be designed to meet changing needs.
• Existing products can be adapted creatively to meet changing preferences and
demands.

43
Q

RESEARCH SKILLS to assist with problem solving

A

• To be able to solve any problem, it is important that your research skills are used to find
the facts that you need to understand the problem.
• Research skills include knowing:
o What information you need
o Where to find that information
o How to choose relevant information
• Research involves:
o Speaking to someone who has experience in the area that is a problem for you
o Going to the library and finding books, magazines or newspaper articles on the
topic
o Looking for information on the internet

44
Q

STEPS in research for problem solving
• The following FIVE steps are involved in research for problem solving:

A

o Be very clear on what you are researching
o Looking for different sources of information
o Analyse the information
o Reflect on the usefulness of the research
o Consider the useful elements of the research

45
Q

Elaborate on the MEANING of PROBLEM SOLVING.

A

• Gathering facts that include problem findings and problem shaping.

46
Q

Explain the DIFFERENCES between DECISION MAKING and PROBLEM SOLVING.

A

DECISION MAKING
• ONE PERSON
• Various alternatives considered
• It is part of the problem-solving cycle.

PROBLEM SOLVING
• GROUP
• Alternative solutions are generated/
identified and critically evaluated.
• analysing a situation to identify
strategies to bring about change.

47
Q

Outline/Mention/Discuss/Explain/Discuss the PROBLEM-SOLVING CYCLE.

A
  1. Identify the problem.
  2. Define the problem.
  3. Identify possible solutions to the problem.
  4. Select the most appropriate alternative.
  5. Develop an action plan.
  6. Implement the suggested solution/action plan.
  7. Monitor the implementation of the solution/action plan.
  8. Evaluate the implemented solution.
48
Q

PROBLEM SOLVING TECHNIQUES

A

delphi technique
force field analysis
brainstorming technique
nominal group technique

49
Q

delphi technique

A

businesses get experts to assess customer complaints and recommend strategies to help

50
Q

force field analysis

A

rate a pros and cons list

51
Q

brainstorming technique

A

define the problem and ask people to discuss reasons for problems/how to solve them, evaluate best ones

52
Q

nominal group technique

A

bigger group splits into smaller groups, each person in a group suggests ideas, person with best idea is reccomended to big group again

53
Q

SCAMPER

A

SUBSTITUTE
• Substitute some parts of the parts of the product with
something else.
• Replace part of the problem with something new.

COMBINE
• Arrange parts of a problem in a creative way to cancel
out the problem.

ADAPT
• Look at existing solutions and adapt them to solve the
current situation.
• Look at the new trend for products and adapt the old
product to attract more customers.

MODIFY / MAGNIFY
• Exaggerate the problem and see if there is a part of it that
can be adjusted to solve the whole problem.
• Put some new parts into the product to attract more
customers.

PUT TO OTHER USES
• Make alterations to use it for other purposes.

ELIMINATE
• Get rid of some parts of the problem or reduce them.

REVERSE / REARRANGE
• Push the idea around and rearrange in order to think of it
differently.

54
Q

MIND MAPS

A

• Decide on the central problem/topic and find a word/picture that captures it.
• Break down the central theme into main ideas/points.
• Break the ideas down further into sub-points.
• Use colour and shapes to help sort ideas logically.

55
Q

FORCED COMBINATIONS

A

• Give employees a list of random words, pictures or objects.
• Employees should then create connections between the problem at hand and their
item.
• Employees should answer questions like “how could this item solve our problem”?

56
Q

EMPTY CHAIR

A

• Speak to an empty chair and imagine another person sitting.
• Make decisions on your own.
• Limited creativity since only one person’s view is really applied.

57
Q

Ways in which a business can CREATE AN ENVIRONMENT that STIMULATE and promote
CREATIVE THINKING

A

• Emphasise the importance of creative thinking and ensure that all staff know that
management want to hear their ideas.
• Encourage staff to come up with new ideas.
• Make time for brainstorming sessions to generate new ideas, e.g. regular workshops
• Place suggestion boxes around the workplace and keep communication channels
open for new ideas.

58
Q

The use of NON-CONVENTIONAL THINKING to identify innovative business opportunities

A

• Methods of thinking that is different from traditional methods must be used
• Business problems are varied in nature
• Finding a solution to each problem can be very challenging
• Solutions must be creative and uniquely suited to the type of problem

59
Q

Recommend/Suggest ways in which creative business opportunities can realistically be
implemented.

A

• Define clear objectives
• Break objectives down into tasks
• Allocating time
• Monitoring each task’s progress and the completion percentage.
• When delays do occur, try to get to the root of the problem.

60
Q

Use of INDIGENOUS KNOWLEDGE to solve problems

A

• Knowledge of the history, culture and traditions of the market is essential
• Indigenous knowledge refers to the knowledge and skills that people in a particular
area possess, that enables them to get the most out of the environment
• South Africa have a wealth of traditional knowledge that can be used when searching
for business opportunities or ways to solve problems

61
Q

Define the MEANING of TIME MANAGEMENT

A

Time management is the ability to manage your time effectively, so that you use the
number of hours available in the day to work towards the goals that you feel are most
important.

62
Q

Explain/Describe/Discuss the IMPORTANCE OF SETTING GOALS.

A

• To achieve balance and direction in your life, you need to set goals.
• To improve self-confidence

63
Q

Explain the IMPORTANCE OF A PROFESSIONAL IMAGE.
It is important to work on developing your professional image because:

A

• The image you present and the way you communicate, create an impression on others.

64
Q

Suggest/Recommend ways in which EMPLOYEES CAN PROJECT A PROFESSIONAL IMAGE.

A

• Be courteous and professional on the telephone.
• set up a good advertising campaign.
• See everyone you meet as a potential client.
• Dress for success.
• Give excellent service.

65
Q

Explain the importance of recognising one’s STRENGTHS AND WEAKNESSES.

A

• recognise your strengths and build on them.
• Recognise your weaknesses, then use that knowledge to your advantage.
• It is only when you can recognise your strengths and weaknesses that you can manage them.

66
Q

BUILDING YOUR STRENGTHS AND MANAGING YOUR WEAKNESSES

A

STRENGTHS
• Focus your energy on the strengths you identified and encourage them until you’ve reached your full potential

WEAKNESSES
• Divide your weaknesses into
those you can and cannot change.

67
Q

Elaborate on the MEANING of SELF-MANAGEMENT

A

• a person’s ability to take control of their life and to deal effectively with change
• In a business context it is a person’s ability to take control of his/her career and to deal effectively with change
• Skills of self-management include
self-reflection
self-confidence
stress management
adaptability.

68
Q

Outline/Mention/Define the MEANING of BUSINESS OBJECTIVES

A

•short -term goals that are set by management to achieve the goals of the company.
• Examples
o make a profit
o be productive
o be sustainable
o exhibit social responsibility

69
Q

Explain/Discuss the BENEFITS OF TEAM WORK

A

• The members of the team learn from each other and grow.
• Business’s is more productive.
• The performance of all team members improves because they support each other’s
skills.
• Teamwork encourages workers to increase their range of skills.
• Gives employees more control over their jobs.

70
Q

Recommend/Suggest ways in which BUSINESSES CAN CREATE AN ENVIRONMENT THAT
ENABLES TEAMS TO WORK EFFECTIVELY

A

• The business can make sure that employees understand and believe in business
objectives.
• The business should listen to employees when they share ideas.
• Important decisions should be taken through a process of teamwork.
• Good teamwork need to be rewarded and mistakes must be viewed as opportunities
to learn and grow.

71
Q

Explain the meaning of INTERPERSONAL RELATIONSHIPS in the business

A

• The chain of command refers to the line of authority which flows from the top
managers to every employee.
• The degree of power and authority that managers possess depend on the level of
management.
• Each individual plays a role in achieving business objectives.

72
Q

factors influencing interpersonal relationships

A

prejudice
discrimination
equality
diversity

73
Q

Factors
Discuss/Explain/Describe factors
that can influence team
relationships
Recommend/Suggest ways in
which businesses can address
factors that influence team
relationships.

A

PREJUDICE

• The personal attitudes and prejudices of managers and other staff can result in discrimination and can erode good communication and teamwork in the workplace.
• Examples of prejudices are based on gender, religion,
disability, social background, appearance, race, age, sexual orientation, education.
• Encourage workers to respect
each other’s differences.
• Respond to any evidence or
complaints of inappropriate
behaviour.
• Deal with any complaints of
discrimination promptly and
confidentially.

DISCRIMINATION

• Discrimination involves
excluding or restricting
members of one group from
opportunities that are
available to other groups.
• Discrimination is based on
religion, age, ethnicity, gender,
disability, skin colour, or race.
• Pay attention to what you
don’t always see.
• Don’t play favourites.
• Keep your personal beliefs
personal.
• Be careful of what you say and
to whom you say it.
• Formalise the policy and the
consequence.

EQUITY

• Equity in a workplace means
everyone receives fair
treatment. This means all
people have equal access to
opportunities.
• An example of equity in the
workplace is “equal pay for
equal work”
• Develop a fair, respectful,
supportive and inclusive
workplace.
• Make judgements based on
merit and fairness.
• Recognise every person’s
contributions

DIVERSITY

• A diverse workforce includes
people with different
characteristics.
• Diversity in the workplace
means inclusion of people of
varying gender, age, religion,
race, ethnicity, cultural
background, sexual
orientation, religion,
languages, education, abilities,
etc.
• Create inclusive policies and
practices.
• Provide diversity training.
• Facilitate effective
communication.
• Encourage interaction.

BS (6 decks)

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