Steps in a Business Plan🪩 Flashcards
Name the Step to set up a business Plan
1) Overview/ Executive Summary
2) Marketiing Plan
3)Operating Plan
4) Human Resource Plan
5) Financial Plan
What is done in the Overview/ Executive Summary
Clearly describe the business idea/ business opportunities
What is done in the Marketing Plan in a Business Plan
Market Research/ description of pricing strategies/ promotional strategies/ product itself ( once marketing research is done, marketing plan can be prepared )
What is done in the Operating Plan
(Physical) Where a business is located / equipment needed/ information on the cost of production and where the business will buy its supplies
What is done in the human resource plan, in a Business Plan
Number of employees and skills, experience and qualifications they receive ( management team will also be indentified )
What is done in the Financial Plan, In a Business Plan?
(1) Sales forecast, potential revenue
(2) Cash flow forecast
(3) Profit/ Loss balance forecast
(4) break even analysis
Why is a Business Plan important ?
(1) Present the business owner with clear sets of instructions on how to run the business so the business can run smoothly
(2) Check progress against objectives ( monitors cash flow and takes action when objectives are not being achieved)
(3) A Business Plan is needed for potential investors or when seeking finance from banks
What are the Draw Backs of a Business Plan
(1) An inaccurate business plan with unachievable objectives can give false hope to entrepreneurs, leading to failed investment
(2) Fast changing markets, harder to predict sales and costs accurately
(3) No business can guarantee success however good the business plan is
