Business Plans

Question 0

Why are business plans drawn up? Give 2 reasons

Answer 0

To impress those who might offer finance
To ensure that the business considers all major issues before it’s too late
Setting targets will allow the business to assess performance.

Question 1

Business plans are not only written before a business starts. True or false?

Answer 1

True. …. You may need business plans for major new projects or investments.

Question 2

What did Winston Churchill say about “planning”?

Answer 2

Failing to plan is planning to fail

Question 3

Who would a business person show their business plan to?

Answer 3

banks and potential investors

Question 4

External issues can upset the best laid plans. How did Mike Tyson express this dynamic?

Plans are alright until …..

Answer 4

You get punched in the face.

Question 5

A punch in the face is a metaphor for an unexpected external issue. Give an example of an external issue that could damage the validity of your Business Plan.

Answer 5

A serious economic collapse
Death
A brand new technology or competitor that takes all your business.

Etc.

Question 6

There is usually a financial section in a business plan. What might be included?

Answer 6

Cash flow forecast
Budgets
Break even analysis. Etc.

Question 7

Will a business plan ensure success?

Answer 7

No. But it will increase your chances of success