Business Plan Flashcards
IMPORTANCE OF A BUSINESS PLAN
📌 A business plan is a document that outlines all the important fact, processes and procedures of the business
📌 The business plan will be used to secure financing from investors or financial institutions
📌 The plan assists in maintaining business focus
COMPONENTE of PESTLE
P ➡️ POLITICAL E ➡️ ECONOMIC S ➡️ SOCIAL AND CULTURAL T ➡️ TECHNOLOGICAL L ➡️ LEGISLATIVE E ➡️ ENVIRONMENTAL
COMPONENTS OF BUSINESS PLAN
- COVER PAGE
➡️ Name of the entrepreneur, name and logo of the business - INDEX PAGE
➡️ Allows the reader to find information in the document - EXCUDIVE SUMMARY
➡️ Summary of the entire business plan - DESCRIPTION
➡️ Outlines the vision, mission, goals and legal requirements - SWOT ANALYSIS
➡️ Identifies strength, weaknesses, opportunities and threats - MARKETING PLAN
➡️ Description of the marketing analysis - OPERATIONAL PLAN
➡️Includes the location of the business - MANAGEMENT PLAN
➡️ Outlines the hierarchy and roles of the employees - FINANCIAL PLAN
➡️ Detailed description of the entrepreneur’s financial conditions - ADDITIONAL DOCUMENTS
➡️ time schedule
INTRODUCTORY PAGES
COVER PAGES 📌 Name of the business 📌 Logo and slogan of the business 📌 Owner's name 📌 Physical address of the business
INDEX PAGE
📌 Page number of each section
DESCRIPITION
➡️ Structure of the business
📌 Includes the form of ownership
📌 Reasons for specific form of ownership
📌 Legal requirements of the business
📌 Detailed description of product or service
PURPOSE of the EXECUTIVE SUMMARY
📌 It’s 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
ASPECTS THAT MUST BE INCLUDED
📌 The business’s name, location, and contact information
📌 Dhe 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
THE CHOICE OF OWNERSHIP DEPENDS ON:
📌 The way CAPITAL will be raised
📌 How PROFIT AND LOSSES will be shared
📌 The REGISTRATION formalities
📌 And the CONTINUITY of the business
TYPES OF LEGAL REQUIREMENTS
CIPC
📌 All forms of companies must register with the companies and intellectual property commissions
SARS
📌 Register with South African Revenue Service to fulfill tax obligations
📌 Most businesses must also register as VAT vendors
LOCAL MUNICIPALITY
📌 Businesses selling or supplying meals or perishable food to eat will need a license from the local municipality doso
IMPORTANCE OF A MARKETING PLAN
📌 Explains how the product or service of business will be marketed
📌 Business must learn as much as possible frome their potential customers
📌 The proposed pricing of the goods and services of the business must be included
IMPORTANCE OF MARKET RESEARCH
📌 Aims to understand the reason why consumers will buy a certain product or service
📌 Business must gather data on the customers by observing the market, asking clients to complete questionnaire
MEANING OF MARKET MIX
- PRICE
➡️ Must allow the business to cover costs and make profit - PLACE
➡️ Refers to where the goods and services are sold - PRODUCT
➡️ Refers to the actual products or services - PROMOTION
➡️ Essential to identify how you are going to make your customers and the target market aware of your products - PEOPLE
➡️ Includes all the people that are in some involved in or who have an impact on the business - PHYSICAL ENVIRONMENT
➡️ Refers to the environment where the business is located - PROCESS
➡️ Describes the ways in which the marketing and sales processes are carried out
FINANCIAL PLAN
📌 The financial plan gives a detailed description of the entrepreneur’s financial contributions, the funding requirements, projected budget and cash flow statements
COMPONENTS OF FINANCIAL PLAN
- SOURCES OF FINANCIAL
📌 Financial contributions of the entrepreneur is stated
📌 Loans from investors or financial institutions - CASH FLOW STATEMENT
📌 Indicates how mush money was received and spent within a certain period - PROJECTS INCOME STATEMENT
📌 Determines whether the business will make a profit or a loss - BALANCE SHEET
📌 The statement shows the estimated worth of the business - PRODUCT COSTING
📌 All the costs involved in the business process - PRODUCT PRICING
📌 Detailed description of how the price of the product and service were determined - BREAKEVEN ANALYSIS
📌 Calculating the point at which income from sales is equal to the expense of the business
📌 After the point the business start to make a profit
