chapter 3.2 Flashcards
business plan meaning
a detailed written document outlining the purpose and aims of a business which is often used to persuade lenders or investors to finance a business proposal
business plans section
description of the business products and services the market business location and how to reach customers organisational structure and management financial info business strategy
what will description of business describe
the business
the objectives of the business
what to describe in the description of the business
who the business are
what they do
a brief history
the objectives of description of the business
these will be S.M.A.R.T targets (specific, measurable, attainable, relevant and time based)
what does the products and services describe
what the business sells or delivers
the future plans of developing products
may include full details of the product
explanation of how the product is made
what does the market describe
total size of the market predicted market growth target market analysis of competitors predicted changes in the market forecast sales revenue from the product
what does business location and how to reach customers describe
the physical location of the business
online or mail orders
how deliveries to customers will be made
what does organisational structure and management describe
the organisational structure
management and details of employees required
level of skills required for the employees
what does financial information describe
projected future financial info sources of capital predicted costs forecasted cash flow and working capital projections of profitability and liquidity ratios
what does business strategy describe
how the business intends to satisfy customer needs
the uses of business plans
to help gain finance
careful planning to reduce risk
benefits of business plans
provides a focus on the business idea helps to clalrify thoughts and ideas provides a logical structure to the business helps to measure actual performance helps to raise finance
