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

• executive statement
• marketing plan
• operations plan
• HR plan
• the 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, which may detract from other essential business activities.
• Sticking too rigidly to a business plan can reduce flexibility, preventing a business from adapting to changes in the market or unforeseen challenges.
• Business plans often rely on assumptions and predictions, which can be inaccurate or outdated, leading to poor decision-making.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.

Question 4

benefits of a business plan

Answer 4

• A business plan helps set clear objectives and provides direction and focus for the business.
• A business plan includes financial forecasts, which help in securing funding and 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