Business Planning Flashcards
Business Plan
A document that lists the aims and objectives of the business. It will also establish marketing and financial plans.
What does a business plan contain?
location
description of the business
a marketing section
the business objectives
human resources section
prices
how the business will compete with its rivals
Why create a business plan?
assist in setting up the business successfully
attracts investors
set the aims and objectives
Problems with a business plan:
uncertainty
lack of experience
change
How to reduce the risk of planning?
research the market thoroughly
talk to experts
plan for a variety of outcomes
regularly review and update the plan
Profit =
revenue - total costs
Revenue definition
the income that a firm receives from selling its goods or services
Fixed costs definition
costs that do not change with output
Variable costs definition
costs that change with output
