Business Plans Flashcards
Name 2 financial motives of an entrepreneur.
1) To make profit
2) To pay employees
Name 2 non-financial motives of an entrepreneur.
1) Help a cause
2) Continue family business
How are business opportunities identified?
1) Spotting trends or gaps in the market
2) Bringing something to locality from elsewhere
3) Brand new invention
What is a business plan?
A document outlining FMOP, and the aims and objectives of a business for its start up.
What does the business plan contain?
SWOT AND FMOP
What are the 3 benefits of having a business plan?
1) More prepared for future
2) Keeps business on track of aims and objectives
3) More likely to get loans and investments due to financial outline
What are the 4 drawbacks of having a business plan?
1) Can be demotivated if targets are not met
2) Can recite it too exactly so no flexibility
3) Only a prediction so could be inaccurate
4) Entrepreneur could have lack of experience in forecasting.
What are the sources of guidance for businesses?
1) Bank
2) Online
3) Other businesses or experienced individuals
Name 2 sources of guidance.
Chambers of commerce (Experienced individuals)
The Prince’s Trust (Encourages start-ups and loans)
What is included in the financial section of a business plan?
1) Sales and cash-flow forecasts
2) What the capital will be spent on
What is included in the marketing section of a business plan?
1) Needs and wants of customers
2) How to stand out from competition
What is included in the operational section of a business plan?
1) Location and equipment
2) Suppliers and production
What is included in the people section of a business plan?
1) Employee amount and skills
2) Management team
