Business Plans

Question 1

Business plan definition

Answer 1

A business plan is a written document that describes a business,its objectives and strategies.The market and and financial forecasts

Question 2

Functions of a business plan

Answer 2

Securing external funding and measuring success within the business

Question 3

Benefits of a business plan to start up a business

Answer 3

Provides a focus and goals for a business
Producing a document can clarify thoughts and identity gaps
Provides a logical structure
Helps test financial viability
Essential to raising finance from outside providers particularly investors and banks

Question 4

Benefits of a business plan

Answer 4

Sense of direction
Evaluation of objectives
Consider constraints on the business
Encourage communication

Question 5

Drawbacks of the business plan

Answer 5

Time spent formulating when could be spent elsewhere
Often too rigid may limit individual creativity
Useless unless followed