Business Plans (12) Flashcards

1
Q

What is a business plan

A

A statement which outlines the way in which a business will attempt to achieve its objectives and giving a clear idea of its operation and direction and gives information about the business

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2
Q

Why make a business plan

A

To set out the business idea, monitor performance of the business

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3
Q

Who uses a business plan

A

the owner(s), potential lenders and investors.

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4
Q

What are the basic parts of a business plan

A

Introduction/ overview

Marketing plan

Operations plan

Human Resources plan

Financial plan

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5
Q

What is included in the executive statement

A

This provides an overview of the businesses aims, objectives and strategy. It sets out how the business is going to be run

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6
Q

What is included in Marketing plan

A

Important part of any business plan based on both field and desk research, market research carries out needs and establishes the size of the market, needs of customers and the level of competition

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7
Q

What is included in Operations plan

A

Include details of where the business will be located, production methods and any equipment needed. Also information on the costs of production and where the business will access supplies

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8
Q

What is included in Financial plan

A

A variety of forecasting will be necessary
A sales forecast indicating potential revenues
A cash flow forecast of the first 12 months
A profit and loss balance of forecast
A break even analysis

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9
Q

Benefits of a business plan

A

Sets out their objectives and strategy -

Outlines its marketing strategy

Clear idea of direction and operation

Helps convince banks to give loans

Highlight the strengths and weaknesses of possible problems

Useful as a monitoring tool.

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10
Q

Drawbacks of a business plan

A

No business can be guaranteed success however good the business plan

May succeed without one if the business is small and easily managed

External factors may make the business successful without a business plan.

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11
Q

What is included in the Human Resources plan

A

Includes the number of employees and there skills, experience and qualifications they require will be outlined and any management team will be identified

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