Business Plan

Question 1

Define what a business plan is

Answer 1

A business plan sets out how the owners/managers of a business intend to achieve it’s objectives. Without a plan, the business is likely to drift

Question 2

What are the 7 parts of a business plan

Answer 2

1. Business idea
2. People running the business
3. Market research
4. Finance
5. Business objectives
6. Targeted market
7. Competitors

Question 3

Name 2 reasons why many new businesses fail

Answer 3

1. Lack of planning
2. Poor leadership
3. Run out of money
4. Market issues
5. Poor objectives
6. Selling sub-par products

Question 4

Name 2 reasons why you should write a business plan

Answer 4

1. Helps spending control
2. Helps applying for a bank loan
3. Helps you know if there is a market for your product
4. Helps the business achieve its aims and objectives