Business plan

Question 1

Business Plan headings

Answer 1

1 Business description- product/service, structure, goals
2 Details of owners/management- key personnel,
3 Market analysis- target market, competitors, market research
4 Market plan- 4Ps
5 Financial analysis- sources of finance
6 Manufacturing and production- equipment, production method,
7 Conclusion- SWOT

Question 2

Assessing performance

Answer 2

The plan can be used as a benchmark to compare the actual performance of the business with the targets in the plan. The firm can take corrective action where targets have not been met.

Question 3

Finance/ grants

Answer 3

A business plan is vital when approaching banks or other investors for finance for the enterprise. Lenders/investors will use it to assess the financial viability of the business. No government agency will give grants unless the business has a good chance of survival.

Question 4

Goals/objectives

Answer 4

The business plan can be used to set out short and long term goals of the firm and lays out the strategies that can be used to achieve these goals. This gives the firm focus and direction. Having a plan provides a guide to future action for the firm. This will help motivate the management and staff

Question 5

Viability

Answer 5

When preparing a business plan all aspects of the business will be analysed. ie strengths, weaknesses, opportunities and strengths (SWOT). It sets out strategies to achieve the goals of the business.

Question 6

Future direction

Answer 6

The business plan will make managers outline, in a well laid out logical set of steps, the firm’s present situation and its possible future direction.