The Business Plan Flashcards
What is a business plan?
A written documents that describes in details the plans and goals of a business and how it is going to achieve these goals.
What are the reasons for preparing a business plan?
It tests the feasibility of the business idea, acts as a guide when making decisions, helps convince investors, outlines the direction for the future of the business, can be used to seek opinions and advice from others and can uncover omission and weaknesses in the plan.
What are elements of the business plan?
the executive summary, operational plan, business opportunity/product/service, marketing plan and financial forecast.
What is the Executive Summary?
An outline or overview of a business plan. It’s aim is to give executive members and potential investors an idea of the business purpose and goals.
What does the Executive Summary include?
The name of business, location, product/service offered and the reason why you think the business will be successful.
What is the Operational Plan?
Describes business operations.
What does the Operational Plan include?
The name & address of the business, legal structure of the business, number employees and responsibilities, manufacturing process, major suppliers and equipment and machinery required.
What is the Business Opportunity (product/service)
This section of the plan describes the product/service the business will offer.
What does the Business Opportunity include?
What is unique about your product that will cause people to buy, other advantages over competitors, packaging, development in future and photographs.
What is the Marketing Plan?
This section will encourage persons to buy from the business.
What does the Marketing Plan include?
Market research carried out, what was revealed, how many customers, distribution strategies, competitors & product comparison & price, your price and advertising.
What is the Financial Forecast?
This part of the the plan turns the entire plan into figures.
What does the Financial Forecast include?
Sources of finances, sale for the first 5yrs, costs you will incur for first 5yrs, the profit and loss forecast and cash flow forecast.
