Component 1 - Business Plans

Question 1

Explain : 3 purposes of a Business Plan?

Answer 1

• Make Objectives clear
• Provide a plan of action
• help secure bank loans

Question 2

Explain : Identify The main sources of Guidance available to Entrepreneurs .

Answer 2

1 - The princes trust, A charity that offers training, mentoring, funding and resources to entrepreneurs between the ages of 18-30.

2 - the internet, access to Multiple sources of info.

3 - Other Entrepreneurs, Valuable information based on 1st hand experiences.

Question 3

Explain : The main components of a business plan.

Answer 3

1 - Executive summary - Explanation of Business idea and the business opportunity

2 - The Marketing plan - Establish metrics such as ; Market size, Level of competition and needs of customers. It allows for clarity and preparation for marketing strategy.

3 - The operations plan - Establishes where the business will be located and Costs/Method of production or provision if it is a service.

4 - The HR plan - Establishes the number of employees needed as well as their skills, experience and qualifications required.

5 - The Financial plan - Shows metrics such as predicted cashflow, profit/loss and market share.

Question 4

Evaluate : The Importance of a business plan

Answer 4

Benefits

1 - Helps to clarify the business’s goals and objectives.
—> Less likely to fail

2- A business plan can help to secure funding.
Conveys viability of the plan to investors or banks

Caveats

1 - Can be unnecessary to some businesses (particularly those that are operating in fast-moving or highly unpredictable markets)

2 - Time consuming to create.

THINK OF FURTHER CHAIN OF REASONING AND A HOWEVER FOR EACH POINT