planning basic Flashcards
1
Q
define business plan
A
To be persuasive for an outside investor and useful to the entrepreneur
2
Q
what does a business plan focus on?
A
MARKETING PLAN; market research, market mapping, promotional methods
OPERATIONAL PLAN; production methods, materials needed
FINANCIAL PLAN; finance needed, cash flow forecast
- the product/service competitive advantage and the USP
3
Q
what is the purpose of a business plan?
A
- helps an outsider understand the business
- attracts investors; potential rewards
- persuade lenders; assess risk
- set out strategic directions/set objectives
4
Q
use of cash flow forecast as a part of a business plan
A
- investors can see the financial viability of the business
- identifies when capital injection may be required
- allows investors to compare actual performance
5
Q
how does a business plan help obtain finance?
A
- amount and typr required
- helps investors assess the risk
- likelihood of business paying back loan
- access more finance
- agree on a lower interest rate
