Term 3 - Topic 3.6 (Business plan) Flashcards
What is a BUSINESS PLAN?
DETAILED description of a proposed or existing business
Provide the term/definition when you evaluate potential customers and competition
Market analysis
Provide a different term/definition of the seven P’s of marketing
Marketing mix
Name the seven P’s of marketing (marketing mix)
Product
Price
Place
Promotion
People
Physical environment
Process
When a business applies for a bank loan, what must they provide to the bank in order for the bank to assess whether the loan was high risk or a good investment?
A business plan
What are FIXED COSTS? Also name a few examples
Costs that do not change in terms of the number of goods produced
Example: rental; salaries; office expenses
What are VARIABLE COSTS? Also name a few examples
Cost changes in terms of the number of goods produced
Example: electricity, cost of materials
What is the BREAKEVEN POINT
The POINT where income and expenses equals
(Income = Expenses)
The ……… and …….. costs have to be less/equal to the total sales for the month. This is when you make a profit.
fixed
variable
Define : Mark up
The INCREASE on the cost of making a product
There are NINE components of a business plan. List them.
- Front cover
- Table of contents
- Executive summary
- Description of business
- Production plan
- Marketing plan
- Management plan
- SWOT analysis
- Financial plan
In which section of the business plan, would you list the names of the staff and directors and their qualifications?
In the Management Plan section
In which section of the business plan, would you provide details of the target market and marketing strategy?
In the Marketing Plan section
In which section of the business plan, would you provide details of the breakeven projections and fixed/variable costs?
In the Financial Plan section
