BUSINESS PLANNING

Question 1

what are the 7 sections a business plan includes?

Answer 1

details of the owner, mission statement, objectives, product details, production details, staffing and finance

Question 2

what are the details of the owner?

Answer 2

who is starting the business, their background and expertise

Question 3

what are the basic aims of the business?

Answer 3

mission statement

Question 4

what are objectives?

Answer 4

specific goals that will help the company reach its aims

Question 5

what are product details?

Answer 5

what goods and and services the business will provide

Question 6

what are production details?

Answer 6

how the goods and services will be created and delivered to the customers

Question 7

what is staffing?

Answer 7

who will work in the business and how they will be paid

Question 8

what is finance?

Answer 8

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

Question 9

what is executive summary?

Answer 9

a short version of the business plan with the main points

Question 10

what are some drawbacks of a business plan?

Answer 10

costly, time-consuming, restrictive, too optimistic and inflexible

Question 11

what are benefits of a business plan?

Answer 11

resources can be allocated efficiently, the owner can communicate the complex business idea and structure to financial backers in.e the bank

Question 12

what is a unique selling point?

Answer 12

what makes the product and services of a new business attractive to customers

Question 13

what is a target market?

Answer 13

whom the products and services of the business are aimed at

Question 14

what are sources of finance?

Answer 14

where a new business is getting its money from to start

Question 15

what is marketing mix?

Answer 15

the aspects of marketing often summarised as the 4ps, product, place, process and promotion

Question 16

what is a business plan?

Answer 16

what a business will do, how it aims to operate and produce and sell foods and services, including how it will finance itself

Question 17

what is organic growth?

Answer 17

internal growth, when a business expands with it’s own resources

Question 18

what is a budget?

Answer 18

predicted costs and expenses, sometimes including expected revenues

Question 19

what is a financial backer?

Answer 19

an investor who provides money for the business

Question 20

what are unit costs?

Answer 20

the average cost of producing a single product, or service

Question 21

what are fixed costs?

Answer 21

costs that do not change with the number of profits or services a business makes or provides

Question 22

what are variable costs?

Answer 22

costs that change with the number of products or services a business makes or provides

Question 23

what are total costs?

Answer 23

fixed costs plus variable costs

Question 24

what is profit and loss statement?

Answer 24

a document showing revenues and costs over a fixed time, quarterly or annually

Question 25

what is cash flow forecast?

Answer 25

a document showing the timing and amounts of cash in and out of the business

Question 26

what is revenue?

Answer 26

all money coming into the business from all the activity

Question 27

what is break-even?

Answer 27

the point when total costs equal total revenue

Question 28

what is outsourcing?

Answer 28

paring another person or business to carry out some of the activities of the business

Question 29

what is output?

Answer 29

the quantity of goods or services produced over a set time period

Question 30

what are books?

Answer 30

financial documents including accounts that a business uses to measure activity and performance