Business planning

Question 1

what are the benefits to producing a business plan?

Answer 1

-shows management and helps you to become more organised/ understanding of your objectives and aims

-encourages investors to invest in your business so they feel more certain and reassured of your plans

-keeps you to a structure and allows you to feel more confident in where the business is headed

Question 2

what should be considered in a business plan?

Answer 2

financing, growth, profits, location, service guarantees, prices, promotion, ROI (return of investments), product detail, market identification, aims/jobs, key personnel, suppliers, POS (point of sale like cash registers and where the transaction takes place), capital, Marketing Mix, income statement, cashflow, break even, competitors, market research, description of product/service

Question 3

purpose of the business plan?

Answer 3

to raise finance, use as a management tool,

helpful to set up business,

shows objective management,

helps identify market,

identifies resources needed

purchases + makes sure stock is secure,

meeting aims and objectives

can help businesses through tough times

helps to gain new customers

Question 4

what is one crucial equation for business plans?

Answer 4

revenue = costs - profit (in-out)

Question 5

what is the marketing mix?

Answer 5

product, place, price, promotion

Question 6

what is the income statement

Answer 6

predicting what your profit will be

Question 7

what is cashflow

Answer 7

how much money is going in and out of the business

Question 8

what is breakeven

Answer 8

expenses = income so you never need to borrow and gain interest resulting in debt

Question 9

what is the main purpose?

Answer 9

reduce risk of going under and increasing chances of success by planning

Question 10

what information about the entrepreneur (and people) should be included?

Answer 10

qualifications, experience + other employees/owners and their experience/qualifications