Business Plans

Question 1

What does a business plan do?

Answer 1

makes the objectives of a business clear and shows how a business intends on achieving those objectives

Question 2

Business plans need to be what to adapt to changing factors?

Answer 2

Flexible

Question 3

What does the market research carried out need to establish?

Answer 3

the size of the market
the needs of the customers
the level of competition

Question 4

What does the operations plan include?

Answer 4

where the business will be located
production methods
equipment needed

Question 5

What does the human resource plan refer to?

Answer 5

the number of employees and the skills, experience and qualifications they require

Question 6

What variety of forecasting will the financial plan have?

Answer 6

A sales of forecast indication potential revenues.
A cash flow forecast for the first 12 months.
A profit and loss balance forecast for the end of the first year.
A breakeven analysis.

Question 7

Benefits of a business plan

Answer 7

Allows business owners to check progress against objectives.
Monitor cash flow.
Take action when objectives are not being achieved.
It is needed for potential investors.

Question 8

Drawbacks of a business plan

Answer 8

Market research costs money and time.
Market research might not be totally reliable.
if it is not accurate, it will not be effective,