Business Plans Flashcards
What is a business plan
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
Why make a business plan
To set out the business idea, monitor performance of the business
Who uses a business plan
the owner(s), potential lenders and investors.
What are the basic parts of a business plan
Introduction/ overview
Marketing plan
Operations plan
Human Resources plan
Financial plan
What is included in the executive statement
This provides an overview of the businesses aims, objectives and strategy. It sets out how the business is going to be run
What is included in Marketing plan
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
What is included in Operations plan
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
What is included in Financial plan
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
Benefits of a business plan
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.
Drawbacks of a business plan
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.
What is included in the Human Resources plan
Includes the number of employees and there skills, experience and qualifications they require will be outlined and any management team will be identified
