Chapter 7: Business Plans Flashcards
Memorize deck
What is a Business plan ?
A blueprint that provides the written ,logical and systematic explanation of WHAT is being planned ,HOW it will be done and WHY the business will successful
What are the reasons for a business plan ?
It is often used to convince potential investors to invest their money in the business or to lend money to the entrepreneur for the business venture .
How should the business plan look ?
Is it logically set out and easy to follow
Includes relevant details and excludes uncessary details
Is neat and free of errors
Why is a business plan important ?
Helps entrepreneur identify its possible Streghts and weaknesses and well as opportuties and threats that might impact the business to help entrepreneur find different strategies to solve WT to create and maintain advantage in the market place .
What is USP ?
Unique Selling Preopostion
What is the format of the business plan
Cover page
Contents pages
Executive Summary
Objectives of the business and SWOT analysis
the Financial plan
Production plan
Marketing plan
Human resources
SWgummary
Appendices
what is the cover page and what does it have
It must look professional and contain information such as :
business name and address
business contact details
business logo and slogan
date that the business plan was done .
what is the content page and what does it have
Each section of the business plan should be numbered and the numbers are used when plan is developed and prepared
It must also have page numbers - helps a person that wants to go to a specific section
what is the executive summary and what does it have
it is only written at the end
it must be short and brief enough to attract readers attention but enough to motivate the person to continue reading
name or names and contact details of entrepreneur as well as brief background of each person( qualifications and experience )
the form of ownerships determining investors risk
short description of the product and service and location of the business( and why it was chosen )
Name the 3 types of forms of ownership
Sole trader or sole propietor
Partnership
Company limited
What is a sole trader ,partnership and company
Sole trader - 1 owners
Partnership -2 -20 owners
Company - 20 - unlimited
What is the difference between a slogan and logo ?
A logo is a picture representation while a slogan is a catch phrase which is identified with the business
What is an organic gram /organagram
hierarchy of employment in a business
What does SMART stand form
S- specific
M- measurable
A- achievable
R- relavant
T- timeous
What does timeous mean
time limit to reach goal
what does relevant
has to do with industry business is in
What is stragetic planning
Vision, mission , Goal and Objectives
Name the factors regarding location of the business
How the business fits into the environment
Is the business near other businesses that compliment it
Will customers have easy access to the business ? Will there be enough parking for customer ?
Security is an important aspect
if business is establishing itself in a mall it must consider trading hours
Businesess in direct competition need to be noted
True or False business needs to do market research
True
What does market research involve
A smart strategic plan
What is a the business vision ?
Vision is the direction that business aims for or see themselves in the future
What is a the business mission ?
Daily actions to achieve vission or core activities and values of the business
What is a the business objectives ?
Short term tasks to reach your goal or SMART
What is a the business goal ?
Long term tasks
What must the business idea be
feastiable and visiable
Why must the business idea be feastable and visiable ?
Feastable - is it a workable idea that can be practically implemented
Visable - Will business be able to generate and maintain profits from this idea
True or False : Strengths and weakness are external
False they are internal
True or False : Threats and opportunites are external
True
What are the elements of the SWOT analysis
Strengths ,Weakeness , Opportunites and Threats
What is the difference between tanagible and intangible
Tangiable is a physical thing you can see and Intangiable is not a physical thing but has value
Name some examples of strengths or weaknesses
Location, Employees skills,Business Culture , UPP, Operational efficentcy and quality
What does UPP stand for
Unique Product Patented