Chapter 7: Business Plans Flashcards

Memorize deck

1
Q

What is a Business plan ?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the reasons for a business plan ?

A

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 well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How should the business plan look ?

A

Is it logically set out and easy to follow
Includes relevant details and excludes uncessary details
Is neat and free of errors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why is a business plan important ?

A

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 .

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is USP ?

A

Unique Selling Preopostion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the format of the business plan

A

Cover page
Contents pages
Executive Summary
Objectives of the business and SWOT analysis
the Financial plan
Production plan
Marketing plan
Human resources
SWgummary
Appendices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is the cover page and what does it have

A

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 .

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is the content page and what does it have

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is the executive summary and what does it have

A

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 )

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Name the 3 types of forms of ownership

A

Sole trader or sole propietor
Partnership
Company limited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is a sole trader ,partnership and company

A

Sole trader - 1 owners
Partnership -2 -20 owners
Company - 20 - unlimited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the difference between a slogan and logo ?

A

A logo is a picture representation while a slogan is a catch phrase which is identified with the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is an organic gram /organagram

A

hierarchy of employment in a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does SMART stand form

A

S- specific
M- measurable
A- achievable
R- relavant
T- timeous

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does timeous mean

A

time limit to reach goal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what does relevant

A

has to do with industry business is in

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is stragetic planning

A

Vision, mission , Goal and Objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Name the factors regarding location of the business

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

True or False business needs to do market research

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What does market research involve

A

A smart strategic plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is a the business vision ?

A

Vision is the direction that business aims for or see themselves in the future

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a the business mission ?

A

Daily actions to achieve vission or core activities and values of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is a the business objectives ?

A

Short term tasks to reach your goal or SMART

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a the business goal ?

A

Long term tasks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What must the business idea be

A

feastiable and visiable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Why must the business idea be feastable and visiable ?

A

Feastable - is it a workable idea that can be practically implemented
Visable - Will business be able to generate and maintain profits from this idea

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

True or False : Strengths and weakness are external

A

False they are internal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

True or False : Threats and opportunites are external

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What are the elements of the SWOT analysis

A

Strengths ,Weakeness , Opportunites and Threats

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is the difference between tanagible and intangible

A

Tangiable is a physical thing you can see and Intangiable is not a physical thing but has value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Name some examples of strengths or weaknesses

A

Location, Employees skills,Business Culture , UPP, Operational efficentcy and quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What does UPP stand for

A

Unique Product Patented

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What are the factors affecting opportunites and threats

A

PESTLE elements

33
Q

What are the PESTLE elements

A

P-Politcal
E-Economic /Ethics
S- Social
T- technological
L- Legal
E- Enviromental

34
Q

What is a contingency plan ?

A

a plan designed to take account of a possible future event or circumstance

35
Q

What enviroment is the PESTLE elements

A

Marco environment

36
Q

What are possible examples of opportunities and threats

A

Current competitors
Consumers
Suppliers
Substitute goods
New competitors

37
Q

True or False : Poor financial planning is one of the biggest causes of business failure

A

True

38
Q

True or False : all the financial aspects that may influence a business both negatively and positively

A

True

39
Q

What is the difference between own and borrowed capital ?

A

Own capital is contributed by the owner(s) and if the business makes a profit ,owners will receive profit
Borrowed capital normally comes from the banks and interest needs to be paid on this money

40
Q

What is a fixed cost ?

A

stays the same regardless of input e,g rent ,insurance

41
Q

what is a variable cost ?

A

costs that change according to input e.g water and electricity

42
Q

What is long term / fixed capital

A

capital used to purchase non-current assets like vehicles and equipment

43
Q

What is working capital ?

A

Working capital is used to purchase trading inventory and to have cash readily available for expenses and short term liabilities

44
Q

True or False : Start -up capital calculation is made when starting a business

A

True

44
Q

What information needs to be included in the production plan

A

Details of suppliers
The method that will be used to manufacture products has to be discussed in detail such as machinery and equipment used
Amount of stock being manufactured
Quality control

45
Q

A Cash flow statement is also required in the financial plan what is another name for this

A

Liquidity

46
Q

What statement is in the production plan

A

Production Cost Statement

47
Q

What needs to be included in

A

Needs to include fixed costs and variable costs

48
Q

Name the 3 methods of production

A

Mass
Batch
Jobbing

49
Q

Name the 2 types of quality control

A

Sampling and SABS

50
Q

What does SABS stand for

A

South African Bureu of Standards

51
Q

What is the break even point

A

The point where we don’t make an profit or loss ,Income = Expenses . That means once business reaches beyond this point thats when they start to generate a profit

52
Q

True or False :some products are a combination of all production methods

A

True e.g Cars

53
Q

True or False : a business needs to include a break -even analysis in the production plan

A

True

54
Q

Explain the difference in Mass ,Batch and Jobbing

A

Mass -producion of large amount of things
Batch - produce large things but in different colours or sizes
Jobbing - producing things according to orders because each one is so different e.g MD dresses

55
Q

What is in the marketing plan

A

will provide information regarding market research that was conducted to determine certain things

56
Q

What does market research help determine

A

1.Who is the target market and what needs do they have
2. How much(price )are they willing to pay
3.Where would they wish to purchase the product/service
4. What are the most effective ways of communicating with the target market about the products and services available

57
Q

What are the Four P,s policy in the marketing plan

A

Product policy
Pricing policy
Place policy
promotion policy

58
Q

What is involved in the Product policy

A

Details of product/service
how the product will be packaged
how brand loyalty will be assured

59
Q

What is brand loyalty ?

A

When consumers choose your product over those of other competitors

60
Q

What is involved in the Pricing policy

A

Factors that may affect the price of the product
How the price will be determined/calculated

61
Q

What are the different pricing stragerics

A

Low cost stragery
Price skimming
Penetraction

62
Q

Explain the low cost strategy

A

Low prices - like pep

63
Q

Explain the price skimming strategy

A

From high to low prices

64
Q

Explain the Pentetration strategy

A

From low to high / physiological pricing R 99.99 instead of 100

65
Q

What is involved in the Place policy

A

will the product /service be marketed directly to the consumer or will it be distributed to the wholesaler ,retailer or agents

66
Q

What is the other name of the place policy

A

Distribution Policy

67
Q

What is involved in the Promotion policy

A

how and where will the product be advertised
how will sales promotion and personal selling techniques be used to communicate with the target market

68
Q

What is the other name of the promotion policy

A

marketing communication

69
Q

True or False : Human resource indicate how many people will need to be employed as well as the range of skills required

A

True

70
Q

True or False : Salaries and wages are included in the human resources

A

False ,Salaries and wages are found in the financial plan

71
Q

What does CSR stand for

A

Cooperate
Social
Responsibility

72
Q

Name 3 examples of CSR

A

recycling or R2 for hope at KFC or donating to charity

73
Q

What does the summary in the business plan include

A

The business plan should conclude on a positive note including details regarding the contribution that the business will make towards the broader community

74
Q

What is an appendices in the business plan

A

its where additional information that was not originally included in the business plan is included

75
Q

What are examples of things to put in appendices

A

Design of the shop
Employment contract
Glossary

76
Q

True of False : A business is a cooperate citizen

A

True

77
Q

What is the triple bottom line

A

Profit
People
Planet

78
Q

True or False : Salaries and wages are the largest expense in the financial section of the business plan

A

True