L1 business planning Flashcards
What are the components of a Business Plan?
Executive Summary
▪ Marketing Strategy
▪ Vision & Mission Statements
▪ Products & Services
▪ Management Team & Organisational Structure
▪ Financial Forecasts
▪ Responsibilities & Targets
▪ SWOT Analysis
▪ PEST Analysis
What does the mission statement cover in a business plan?
A formal summary of the company aims and values
Short statement of an organisations purpose, identifying goal of its operations; kind of product / service it provides, its primary customers / market, and its geographical region of operation
Business plan sets out how you will achieve your mission
What does the market analysis cover in a business plan?
Understand the environment you operate in, and the skills required to be successful
Ensures resource is in place to achieve those objectives
Where do you fit?
SWOT / PESTLE
What does the financial projection cover in a business plan?
Where company currently stands and where it intends to be (financially)
How will the business afford to achieve its strategic goals and objectives?
Create a financial plan - includes;
- Income statement / P & L statement
- Balance sheet
- Cash flow statement / cash budget
What does the sales and marketing strategy cover in a business plan?
Positioning the business
Researching the market
FOUR P’s:
- Product: what is offered
- Price: setting price signals, what to expect from the product
- Place: where the business is located & where it can operate
- Promotion: advertising, spreading awareness, sharing the brand
What is a market analysis and why is it important in a business plan?
A market analysis = a quantitative and qualitative assessment of a market
Helps to identify size of the market both in volume and in value, various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation
The business plan can then align their strategies with the needs of the customer audience
Why are business plans produced up to a 5 year period?
Business plans should be updated regularly to respond to changes in the market, the performance of the company, the release of a new product or service line
A PESTLE analysis can assist with identifying meaningful changes to the business.
What do you do when starting up a business?
Develop a business plan which looks 3-5 years ahead
What is a SWOT analysis?
Internal study undertaken by a business to identify its Strengths, Weaknesses, Opportunities and Threats
Can help shape the business strategy, highlighting areas of concern or advantage for the business
What is a KPI?
A measurable value to determine the success of project/venture
What is a PESTLE analysis and why is it used?
Often used as a broad fact-finding activity
Helps organisations establish external factors that could impact decisions made inside organisation
Political (i.e. Tax policies like SDLT, foreign trade, government policies)
Economic (i.e. Brexit, COVID, recession)
Social (i.e. population increase, change in market demographic)
Technological (i.e. new cheaper materials / construction methods?)
Legal (i.e. planning, regulatory changes, Tenant Fees Act 2019, consumer protection laws etc)
Environmental (i.e. MEES, climate change, obsolescence)
What is a business plan?
A formal statement of the businesses goals, reasons why they are attainable and the plan for reaching the goals
Provides employers with a common ground to
focus upon.
What do you find in a Business plan?
The vision
Objectives and goals
Strategies and actions
How do companies write a business plan?
Analyse industry: to identify business opportunities and critical success factors
Focus their resources in developing their competences in the critical success factors.
Then leads to the development of goals and objectives with associated strategies and actions
What procedures does your firm adopt to ensure they are profitable?
▪ Time recording (TOGGL)
▪ Resource planners
▪ Project reviews
▪ Yearly Performance reviews
▪ Team Meetings
▪ Director one-to-ones
▪ Business Development Strategy
▪ Project pipeline monitoring
What are your business’ goals?
