Business Plan

Question 1

What is a business plan

Answer 1

Provides a focus on the idea of what business is. Helps keep the business more organized. Can be used to measure performance

Question 2

What is a business plan used for

Answer 2

Can be used to get a loan from the bank or another source of outside financial provider

Question 3

Advantages of a business plan

Answer 3

Allows business to review rather ideas
Reduces risks by providing a guide
Allows the business to review there progress and see if they need to change anything
Will help to secure financial provider
Can reduce risk of failure

Question 4

Disadvantages of a business plan

Answer 4

The plan might be poor quality so the bank will be less likely to give a loan
Cost maybe over or under estimated
It will require constant updating
Producing and reviewing the plan requires time and effort which is important for a small business