Business Plans

Question 1

what is a business plan?

Answer 1

a statement which outlines how a business will attempt to achieve it’s objectives

Question 2

what are the 5 core parts of a business plan? + explain?

Answer 2

1. overview - aims / objectives / strategy
2. marketing - field and desk research / establishes customers and competition
3. operations - location / production methods / equipment / costs
4. human resources - employees / skills and qualifications needed / management
5. financial - forecast (sales/cash flow) / profit and loss / breakeven

Question 3

what are the benefits of a business plan?

Answer 3

• sets out the objectives and strategies
• outlines the marketing strategy
• gives an idea of direction
• helps convince banks
• identifies strengths and possible problems

Question 4

what are the drawbacks of a business plan?

Answer 4

• it’s only a prediction (not guaranteed success no matter how good it is)
• external factors e.g covid are not taken into consideration