business plans

Question 1

what is a 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

what are the core parts of a business plan?

Answer 2

• marketing plan
• executive statement
• HR plan
• operations plan
• financial plan

Question 3

what are the negatives of a business plan

Answer 3

• A business plan can be time-consuming and costly to develop
• Business plans often rely on assumptions and predictions, which can be inaccurate or outdated, leading to poor decision-making.
• Over-optimistic projections may lead to unrealistic goals, creating pressure on resources and potentially causing failure.
• Sticking too rigidly to a business plan can reduce flexibility, preventing a business from adapting to changes in the market or unforeseen challenges.

Question 4

benefits of a business plan

Answer 4

• Helps set clear objectives and provides direction and focus for the business.
• Includes financial forecasts, which help managing cash flow effectively.
• It provides a structured framework for decision-making, helping to evaluate options and reduce risk.
• It communicates the business vision, strategy, and financial projections to stakeholders, such as investors/ customers