Business Plans

Question 1

Business Plan Def

Answer 1

A statement that outlines the way in which a business will attempt to achieve its objectives.

Question 2

Executive Statement

Answer 2

Provides insight of the business’ overall aims, objectives and strategy and evidences how the proposal is viable. Sets out how the business is going to be run.

Question 3

The Marketing Plan

Answer 3

Important part of any business plan based on field and desk research.
Market Research establishes: Size of market, needs of customers and level of competition

Question 4

The Operations Plan

Answer 4

-Location
-Production Method
-Equipment/Supplies
-Cost of Production

Question 5

Human Resources Plan

Answer 5

The number of employees and the skills and experience they require.
Management roles are filled.

Question 6

Financial Plan

Answer 6

Sales forecasting
Cash flow for first 12 months
Profit/Loss for end of first year
Break Even Analysis

Where the capital is from for starting and running the business.

Question 7

Benefits of a Business Plan

Answer 7

Establishes objectives and strategy
Convinces banks of lending
Highlights strengths/weaknesses
Can compare plan with actualised performance

Question 8

It depends…

Answer 8

Small sole traders wouldn’t need one
Not the sole factor of success