business plan Flashcards
what is the swot analysis
- strengths e.g. good location or skilled employees
- weakness e.g. poor customers services, unskilled work force
- opportunities e.g. development of new product and new technology
- threats e.g. competitors, substitute goods
What are the cover sheet
-includes business name, address and contact details
What is the executive summary
- mission and vision of business
- goals of business
- advantages of starting a business
What is the business description
- form of ownership
- target market
- use of product
- potenial suppliers
What is the production plan
-method of production a business plans on using
What is the financial plan
- budget
- cash flow statement
- income statement
What is the marketing plan
-advertising media that will be used
What is the appendices
- contracts
- cv of owners
Name the components of a business plan
- 1) Cover Sheet
- 2) Executive Summary
- 3) Business Description
- 4) Production Plan
- 5) Marketing Plan
- 6) Financial Plan
- 7) Apendices
What is production costs
refer to all the costs that were incurred by an enterprise to produce a product
Name the types of primary costs
-Direct raw material costs
The cost of the raw materials used in the production of goods
-Direct labour costs
The cost of labour used to manufacture goods
Name the types of overhead costs
- Fixed cost
- Variable cost
What are fixed costs
-costs that do not change as fewer or more units are produced e.g. rent or insurance
What are variable costs
-costs that change as the number of units produced change e.g. water & electricity and telephone
How do you calculate Primary costs
Primary costs + Overhead costs = Primary costs
