BUSINESS PLANNING Flashcards
what are the 7 sections a business plan includes?
details of the owner, mission statement, objectives, product details, production details, staffing and finance
what are the details of the owner?
who is starting the business, their background and expertise
what are the basic aims of the business?
mission statement
what are objectives?
specific goals that will help the company reach its aims
what are product details?
what goods and and services the business will provide
what are production details?
how the goods and services will be created and delivered to the customers
what is staffing?
who will work in the business and how they will be paid
what is finance?
what money is needed to set up and run the business until it can make a profit and generate its own income. includes cash flow forecast and projected profit and loss
what is executive summary?
a short version of the business plan with the main points
what are some drawbacks of a business plan?
costly, time-consuming, restrictive, too optimistic and inflexible
what are benefits of a business plan?
resources can be allocated efficiently, the owner can communicate the complex business idea and structure to financial backers in.e the bank
what is a unique selling point?
what makes the product and services of a new business attractive to customers
what is a target market?
whom the products and services of the business are aimed at
what are sources of finance?
where a new business is getting its money from to start
what is marketing mix?
the aspects of marketing often summarised as the 4ps, product, place, process and promotion
what is a business plan?
what a business will do, how it aims to operate and produce and sell foods and services, including how it will finance itself
what is organic growth?
internal growth, when a business expands with it’s own resources
what is a budget?
predicted costs and expenses, sometimes including expected revenues
what is a financial backer?
an investor who provides money for the business
what are unit costs?
the average cost of producing a single product, or service
what are fixed costs?
costs that do not change with the number of profits or services a business makes or provides
what are variable costs?
costs that change with the number of products or services a business makes or provides
what are total costs?
fixed costs plus variable costs
what is profit and loss statement?
a document showing revenues and costs over a fixed time, quarterly or annually
