business plans Flashcards
What is a business plan
A statement that outlines the way in which a business will attempt to achieve its objectives - giving a clear idea of its operation and direction
What are the 5 components of a business plan
The introduction or overview / executive statement
The marketing plan
The operations plan
The human resources plan
The financial plan
Explain what the marketing plan is
The marketing plan is an important part of any business plan based on both field and desk research. Market research carried out needs, if possible, to establish the size of the markets, the needs of customers and the level of competition. When market research findings have been examined then the marketing plan can be prepared.
Explain the human resources plan
The humans resources plan is the number of employees and the skills, experience and qualifications they require will be outlined. Any management team will also be identified
Explain what is meant by the operations plan
The operations plan includes details of where the business will be located, production methods and any equipment needed. Plus, information on the costs of production and where a business will buy supplies may be included
Explain what is meant by the introduction or overview / executive statement
It provides en over view of the business’s aims, objectives and strategy, and its evidence that the proposal is visible.it sets but how the business is going to be run.
Explain what is meant by the financial plan
The financial plan
A variety of forecasting will be necessary:
A sales forecast indicating potential revenues
A cash flow forecast for the first 12 months
A break-even analysis
A profit and loss and balance forecast for the end of the first year
In addition, information on where the finance for starting and running the business will come from indicating the available start-up capital as well as any potential borrowings
Who offers advice to people starting A business
Business wales
Commercial banks
The Princes trust
British chambers and commerce
What is business Wales
Business Wales is a government run website-based information resource for fuses invidious who are thinking of starting a business or wanting to grow their business and are seeking information, advice and guidance
What does the Princes trust do
They work with 18 to 30 year olds to turn big ideas into business reality through their enterprise programme, and offer training and mentoring support to funding and resources
What do commercial banks do to aid business start up
Many of the high street banks offer a dedicated service to small businesses and offer advice on how to construct a business plan and gain financial approval
what are the benefits of having business plan
useful as a monitoring tool - e.g. compare actual performance with forecasts in the business plan
sets out what personnel/skill will be required to run the business effectively
highlights strengths and identifies possible problems which can then be dealt with in advance
clear idea of direction and operation - strategic planning/setting objectives
outlines its marketing strategy - researches vital information such as the size of potential markets, the strength of the competition, etc.
sets out their objectives and strategy - outlines the way in which they will attempt to achieve their business objectives
helps them think ideas through - giving a clear idea of direction and operation. may help to identify difficulties that may occur and allow the business to deal with them before they become a problem
what are the benefits of not producing a business plan
may succeed without one if a small, easily managed business e.g. window cleaner
no business can be guaranteed success however good the business plan is.
external factors may make the business successful even if business plan not drawn up - economic upturn, change in the law/government policies.
may succeed if the product or service proves so popular that sales are very high, and profits are made consistently
