Business Plan Flashcards
1
Q
What is a Business Plan? (2)
A
A Document that shows the planning of a future business or established business
2
Q
What is the benefit of a business plan? (7)
A
- Carry Out Market Research
- Eg. Questionnaire
- If based off a large sample size
- Improve Validity of Results
- Reliable Sales Predictions
- Create Cash Flow Forecast
- Convince Bank they can make Loan Repayments
3
Q
What is the Drawback of Business Plans? (7)
A
- Can become out of date
- Eg. Due to a change in trends
- Lead to an unexpected change in demand
- Making Market Research Invalid
- Unreliable Sales Predictions
- Inaccurate Cash Flow Forecast
- Financial Projections are unreliable
