Business Plans Flashcards
What is a business plan
a document setting out a business’s future objectives and strategies for achieving them.
WHY WRITE A BUSINESS PLAN
Forces the entrepreneur to look at every aspect of the business e.g. finance & tax
Assists the entrepreneur to see the strengths, weaknesses, opportunities and threats to the business
Banks will not usually lend to new businesses without a business plan
Useful when the business starts trading – use it to monitor actual events compared with those in the plan.
However, they quickly become out of date – must be updated regularly
What might a business plan include
timeline executive mission statement company background product description marketing plan competitor analysis swot analysis operations financial planning
Benefits of a business plan…
Secure finance
Consider opportunities and risks
Show the future vision of the business
Organise business activities in a logical and structured way
Prioritise what is needed to be done in order to make a profit
Help with decision making
Map out actions needed to succeed
Ensure the business has necessary resources