Business Planning Flashcards
What is a business plan?
A business plan is a written document that describes your business. It sets out objectives, strategies, sales, marketing and financial forecasts.
What should a business plan include?
- What your business will do.
- Products or services it will provide.
- How customers will access products.
- Approach to planning.
- Long term objectives.
Why have a business plan?
- Set objectives
- Employees can see milestones that management wish to hit
- You will need a business plan if you want investment from the bank
Tell me some of the things covered in your firm’s business plan?
- New locations
- New Services
- New Sectors
- Service
- etc.
What is turnover?
Turnover is an accounting concept that calculates how quickly a business conducts its operations.
Most often, turnover is used to understand how quickly a company collects cash from accounts receivable or how fast the company sells its inventory.
What is gross profit?
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company’s income statement and can be calculated by subtracting the cost of goods sold from revenue (sales).
What are the types of business structure?
- Sole trader
- Limited company
- Partnership
- Limited Partnership
- Limited Liability Partnership
Tell me about limited liability partnerships?
Limited liability partners are limited in their liability to the amount of their initial investment.
Partners responsibilities are share of profits are set out in an LLP agreement.
