Business Planning Flashcards
1
Q
What is the purpose of a business plan for a small start up?
A
- to see if idea is feasible
- to get a bank loan
2
Q
Why are business plans important?
A
- for stakeholders to understand business
- to provide aims and objectives
3
Q
What are the difficulties in writing a business plan?
A
- financial projections can be inaccurate
- time consuming/ long to read
4
Q
What are the sections of a business plan?
A
- suppliers
- costs
- personnel
- product
- cashflow forecast
5
Q
Risks facing start ups and how can they be prevented?
A
Bankruptcy- bank loan/overdraft
Negative cashflow- reduce costs
