TOPIC 18 - Business Plan

Question 1

What is a business plan?

Answer 1

Written plan, giving a detailed description of how the business will achieve its goals

Question 2

Name the COMPONENTS of a business plan

Answer 2

Marketing plan
Management plan
Financial plan
Production plan
Info about the business (who owns it, what
the business do)

Question 3

What is a SWOT analysis?

Answer 3

S - strengths
W - weaknesses
O - opportunities
T - threats

Any of these ^^ could affect the success of your business

Question 4

Which 2 aspects in the SWOT analysis have an EXTERNAL origin?

Answer 4

Opportunities
Threats

Question 5

For a BUSINESS PLAN to be realistic, you need to show investors that you have looked at all the positive and negatives aspects that could affect your business. What do you call this?

Answer 5

SWOT analysis

Question 6

A very important part of a business plan is the FINANCIAL PLAN. In this section you need to show that the business will be financially …………

Answer 6

viable (business will be successful)

Question 7

There are 4 sections in the FINANCIAL PLAN. Name them

Answer 7

1) Fixed & variable COSTS
2) BREAK-EVEN points
3) MARK-UPS on sales
4) PROFIT percentage

Question 8

Explain what BREAK-EVEN means for a business

Answer 8

This is when a business makes ENOUGH money to
cover the PRODUCTION costs

{Make money = cost to produce something}

Question 9

Explain what MARK-UP means for a business

Answer 9

The cost you ADD to a good’s cost to make a PROFIT

Question 10

The MARK-UP needs to reflect a good pricing strategy. If your mark-up is too HIGH, consumers might not purchase it, as it will be …………….

Answer 10

overpriced

Question 11

Give a definition of PROFIT

Answer 11

PROFIT = total INCOME - total COST

Question 12

Th financial plan needs to show the profit your business makes as a percentage. Provide the calulation thereof

Answer 12

PROFIT PERCENTAGE = difference betw selling
price and cost price
/ COST PRICE
X 100