Developing Business Plans

Question 0

Why set-up a business plan?

Answer 0

• helps set clear objectives for business.
• persuades lenders to invest(bank managers)
• encourages entrepreneur to plan ahead in a realistic way.

Question 1

Business plan

Answer 1

A plan for the development of a business, giving details such as the products to be made and sold and forecasts, such as costs and cash-flow

Question 2

What’s in a business plan

Answer 2

• Executive summary
• the business and it’s objectives
• business opportunity
• market
• personnel
• buying and production
• premises and equipment
• financial forecasts

Question 3

Sources of info and guidance

Answer 3

• Accountants, bank managers give financial guidance.
• business links- government funded services.
• Princes Trust and PRIME, Offer help to entrepreneurs aged 18-30 and 50+ respectively.

Question 4

Executive summary

Answer 4

Overview of business star-up describes: marketing and sales strategy, business opportunity to be exploited, operations and finance

Question 5

Business and objectives

Answer 5

Name, location, legal

Structure and aims of business.

Question 6

Business opportunity

Answer 6

Amount of products to be made and sold.

Question 7

Market

Answer 7

Size of market, description of potential customers, competition, marketing priorities- backed up by market research.

Question 8

Personnel

Answer 8

Who will run business, skills, qualifications and experience.

Question 9

Buying and production

Answer 9

Suppliers, production methods and cost of production.

Question 10

Premises and equipment

Answer 10

Premises to be used, equipment which needs to be obtained an financed.

Question 11

Financial forecasts

Answer 11

Sales forecasts, cash flow forecasts, cost or break-even analysis.