business plan

Question 1

what is a business plan

Answer 1

a document that outlines what a business plans to achieve and how it plans to achieve it

Question 2

who is a business plan important to

Answer 2

a new and established business to monitor performance and stay on track

Question 3

whats the role of a business plan in raising finance

Answer 3

-helps finance providers assess the business model
-provides a structured assessment of the opportunities and risks
- essential analysis of the competitive position of the business and market attractiveness
-provides benchmark against progress can be measured
-helps determine amount and type of finance needed

Question 4

whats included in a plan

Answer 4

business overview
aims + objectives
marketing + sales strategies
financial forecasts

Question 5

whats in the finance section

Answer 5

cah flow forecasts
sales forecasts
break even analysis
expenditure budget
projected statement of comprehensive income
projected statement of financial position

Question 6

when are forecasts done for

Answer 6

short and medium term

Question 7

what is a business plan likely to (1-3)

Answer 7

force owners to take an objective critical and unemotional look at the business idea
provide a road map showing a clear direction for the development of the business
provide an action plan that identifies key tasks that must be undertaken and goals that must be met to improve chances of success

Question 8

what is a business plan likely to (4-5

Answer 8

flag up potential issues in advance so investors are aware and solutions can be found
help show lenders and investors that the owner is cautious responsible serious and credible

Question 9

why is a business plan good to business angels and crowd funding

Answer 9

provides a good description of product and people running the business and these sources of finance may be more encouraged to invest if the owners are passionate and driven.

Question 10

in what ways can a business plan help get cheaper long term finance

Answer 10

if cash flow forecasts show loan repayments can be made successfully and on time then they may get lower interest rates

Question 11

why may a venture capitalist except a smaller share in return for their investment

Answer 11

if the plan shows it is highly profitable and successful