Business Plans

Question 1

Name some reasons to make a business plan

Answer 1

Structure objectives for the future
Let’s them track progress
Plan the future
Try and get a bank loan
Focuses on the idea
Helps clarify thoughts and identify possible issues

Question 2

What is the most likely aim for a new business?

Answer 2

Survival

Question 3

How would the aims and objectives change over time?

Answer 3

They may start to focus on making a profit and expanding the business.
May achieve their first objective
Competitive environment may change
Technology may change product design

Question 4

What is a business plan?

Answer 4

A written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts

Question 5

Contents of a business plan part 1

Answer 5

Idea
Product
Target market/competitors
Price to sell and produce
Location 
Marketing mix

Question 6

Contents of a business plan part 2

Answer 6

Will it be sold profitably
Break even and likely profits
Investment required to start up
Where will the money come from
Finance required
Risks and how to handle

Question 7

Aims vs objectives

Answer 7

An aim is where the business wants to go in the future and an objective is the targets of how to achieve this

Question 8

Mission statement

Answer 8

Sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business