Business Plan

Question 1

What does a business plan shows you about your business

Answer 1

Strengths
Weaknesses
Opportunities
Threats

Question 2

Give the six elements of a business plan

Answer 2

Management
A list of companies products or services
Marketing
Finance
Production
Directors signature

Question 3

What do you use a business plan for

Answer 3

To show potential investors or the bank when asking for capital or a loan what they are investing in. Ex. Dragons Den

Question 4

Explain in your business plan what you need to include about management

Answer 4

Experience and qualifications of the managers
Responsibility of the managers
Company details like name and address

Question 5

Explain in your business plan what you need to include about marketing

Answer 5

You need to supply
What the company sells and if the market is big or small
Who are your customers in term of age group
Who are your threats and competitors
Market research
Prices
Advertising plans
Sales projections

Question 6

Explain in your business plan what you need to include about finance

Answer 6

Where you will get your money and will you have a cash flow forecast

Question 7

Explain in your business plan what you need to include about production

Answer 7

Cost of goods and your suppliers. What are your premises and equipment going to cost and will you need to employ labour

Question 8

Explain cash flow forecast

Answer 8

This is when you forecast or estimate the cash you will have in the future

Question 9

Explain why a cash flow forecast is important

Answer 9

With no cash a business cannot pay employees and rent etc…. so we need to prepare a forecast to plan for times when cash flow is short

This prevents businesses becoming cash starved

This is the main reason why businesses fail….. Not having enough cash

Question 10

What does receipts mean on a cash flow forecast

Answer 10

Cash the business gets in