business plans

Question 1

what is a business plan

Answer 1

a document that outlines how an entrepreneur is going to set up a new business

Question 2

what is a business idea

Answer 2

a brief description of the goods/services that the business will provide on a day to day basis

Question 3

what is a business aim and objectives

Answer 3

outline of what the business wants to achieve
should be SMART to allow entrepreneurs to measure their later performance easy against og objectives

Question 4

target market in business plan

Answer 4

a summary of the market research findings and details about the business target market
will include potential size of market and any identifiable trends in that market

Question 5

forecast revenue cost and profit

Answer 5

based on market research
include estimated costs of setting up business and running daily
predicted profit

Question 6

cash flow forecast

Answer 6

a forecast on the amount of money that will come into and go out of the business and the times
important as even a profitable business can fail due to cash flow problems

Question 7

sources of finance

Answer 7

the total amount of money that us needed in order to start up and run the business and where the money will come from

Question 8

location

Answer 8

an outline of where the business will operate from
this could include a retail outlet, a factory, offices or even the entrepreneurs home address ur business is running there

Question 9

business plan marketing mix

Answer 9

short description of each of the businesses four ps
each of these decisions should be backed by market research findings and reflected in the forecast revenues and costs

Question 10

SMART objectives

Answer 10

objectives that are
smart
measurable
achievable
realistic
time bound

Question 11

what is market research business plan

Answer 11

the process of gathering information about the market and customer needs and wants to help inform business decisions including product design and marketing

Question 12

what is a target market

Answer 12

the group of people that a business has identified as potential customers

Question 13

how can risk be reduced

Answer 13

very detailed planning that makes the entrepreneur think through the issues that may arise
setting clear objectives and aims to help provide direction
conducting market research
making financial forecasts to set budgets and monitor spending
using cash flow forecasts can plan for negative cash balance, maybe arrange an overdraft

Question 14

obtaining finance business plan

Answer 14

bank loan would require manager reviewing business plan before granting it, same with an investor, potential to succeed