Business Plans

Question 1

business plan

Answer 1

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

Question 2

advice available to start up businesses

Answer 2

•Business Wales
•Commercial Banks
•The Princes Trust
•British Chambers of Commerce

Question 3

core parts of business plan

Answer 3

•introduction: overview of business’ aims, objectives and strategy
•marketing plan: market research
•operations plan: location, production methods, equipment including costs
•human resources plan: number of employees and skills, experience and qualifications required, management teams
•financial plan: forecasting sales, cash flow, profits or loss, break even, source of finance

Question 4

benefits of business plan

Answer 4

•sets out objectives and strategy
•outlines marketing strategy- researches vital info of market size, strength of competition etc..
•clear idea of direction and operation- strategic planning
•helps to convince banks and lending institutions of its ability to pay back loans- cash flow forecast
•highlights strengths and identifies possible problems
•sets out what personnel/skills will be required
•helps them think ideas through
•useful as a monitoring tool- compare performance with forecasts

Question 5

drawbacks of business plan

Answer 5

•may succeed if the product or service is so popular that sales are very high and profits are constantly made
•may succeed without one if it’s a small, easily managed business
•no business can be guaranteed success
•external factors may make the business successful- economic upturn, change in the law