Business Plan

Question 1

What is a Business Plan?

Answer 1

A written description of a business’s future aims and strategies. It is a roadmap that explains what the business plans to do and how it plans to do it.

Question 2

What are the benefits of a business plan?

Answer 2

1. Sets targets to be achieved to help focus the business.
2. Identifies problems in advance so solutions can be found.
3. It is a required document when applying for a business loan.
4. Useful tool to review performance (compare plan to actual performance.)

Question 3

What is a Swat analysis?

Answer 3

It identifies the Strengths, Weaknesses, Opportunities and Threats facing the business.

Question 4

Name the 8 headlines of a business plan.

Answer 4

1. Title: Business Plan for “Business Name”
2. Background of the Business
3. The Business Team
4. Market and Marketing
5. Production
6. Coatings and Finance
7. Structure of the Business
8. Signed and Dated

Question 5

What should be outlined in the background of the business?

Answer 5

Aims and objectives of the business- what it is set up to do.
Name and Address.

Question 6

What should be outlined in the Business Team?

Answer 6

The people involved in the business, (experience and role etc.)

Question 7

What should be outlined in the Market and Marketing?

Answer 7

Description of Target Market
The Current and potential size of market (no. of people)
Current competitors in the market
Marketing Mix (Product, Price, Place, Promotion.)

Question 8

What should be outlined in Production?

Answer 8

List of Premises and equipment the business owns.
Production Process (job, batch or mass production.)

Question 9

What should be outlined in Costing and Finance?

Answer 9

How much it costs to produce the item
Details of loans the business has
Amount of finance (loan) needed
How will finance (loan) be repaid
Cash-flow Forecast

Question 10

What should be outlined in the Structure of the Business section?

Answer 10

Type of Business (Sole Trader, Private Limited Company, Partnership.)