The Business Plan Flashcards
What is a Business plan?
Outline of what the business will do and how it aims to do it
Why have a Business Plan?
- Forces owners to think carefully about what the business is going to do
- What resources it will need
- Allows business to calculate Start-Up Capital
- Shows at an early stage if the business is going to work or not (before time & money have been wasted)
How does a Business plan help with finding financial backers?
It can help to convince that the business is a sound investment
What are the seven sections in most business plans?
- Personal details
- Mission Statement
- Objectives
- Product description
- Production details
- Staffing requirements
- Finance
What personal details are included?
Owners important relevant information like CV
- Financial backers want to know who they are trusting with their money
What is a Mission Statement?
A way of describing Broad Aims, usually containing long word and something general & obvious
What type of Objectives are included
More specifiec than Aims:
eg - Average 160 sandwich sales during each lunchtime over 4 years
What is included in the product Description?
- Details of Market & Competitors
- How they will achieve “Product Differentiation” (USP, Unique Selling Point)
- Marketing Strategy (4 P’s)
- Including field & Desk Research
What is included in Production Details?
- How the firm will make the products or provide its service
- Should list all equipment needed
- Location
What is included in Staffing requirements?
- What personnel is needed
- How many
- Job descriptions
- Expected Wages Bill
