Unit 1 - 1.2 - Business Planning Flashcards
What must a business do to reduce the risk of failure?
A business must think about the prices and goods competitors offer
This involves market analysis and competitive pricing strategies.
What is one goal a business must achieve to be successful?
Decide the kind of people it needs to run the business
This includes hiring and staffing strategies to ensure the right skill sets.
How can a business market its product effectively?
By deciding how to market its product as effectively as possible
This involves developing marketing strategies, understanding target audiences, and utilizing appropriate channels.
What is the first step in business planning?
Identifying what the business will produce and sell and what resources it will need.
What should a business identify regarding its aims?
Identifying the aims and objectives of the business and how these will be met.
Who should be identified in the business planning process? People
Identifying who will be involved.
What are human resource requirements in a business plan?
Identifying the human resource requirements the business will need to operate, including the number of people needed and the skills and experience they should have.
What must a business identify about its target market?
Identifying the markets that the business will target.
What marketing activities should be identified for business success?
Identifying marketing activities - price, product, place and promotion.
What should be identified regarding marketing resources?
Identifying the marketing resources needed.
What financial aspects need to be identified in a business plan?
Identifying how much finance is needed and what for.
How should a business plan address funding?
Identifying how the money will be raised.
Why is a good business plan necessary?
A good business plan is necessary to present to investors if a business hopes to obtain external finance.
What should be identified regarding competitors?
Identify the competitors.
How should a business differentiate its product or service?
Identify how the product or service will be different to those of competitors - better, cheaper.
What are resources in a business context?
The things a business needs to make it work, including staff and materials.
Resources are essential for operational success.
What do aims and objectives represent in a business?
Statements of what the business is trying to achieve, such as grow larger or make a profit.
Aims are broader goals, while objectives are specific targets.
What are markets in relation to a business?
Where a business sells its goods or services.
Markets can be local, national, or international.
What does the term finance refer to in business?
A business word used instead of money.
Finance is crucial for various business operations and investments.
What is the finance needed to start a business?
The money required to buy the resources needed.
This includes costs for materials, staff, and other operational expenses.
What is a business plan?
A simple plan which sets out details of the product or service being sold and how it will be financed, marketed, and details of market research findings.
A business plan is essential for guiding business strategy and securing a bank loan.
What Acronym is used to cover all objectives
SMART
What is the S in SMART
Specific- clearly stating what is to be achieved
What is the M in SMART
Measurable - stating how to measure of success of the plan using (sales/profit)
What is the A in SMART
Achievable - the targets are possible for the business to achieve
What is the R in SMART
Realistic - the targets are appropriate for the business
What is the T in SMART
Time bound - the plan includes a deadline for achieving the targets
What are the 4 parts of the business plan
- Identifying the market
- Identifying the resources
- Identify the finance needed to start up or grow the business
- Achieve the business’ aims & objectives
What is “identifying the market “
The age, gender , and income of targeted customers
What is “identifying the resources “
Needed to operate the business for example type of equipment or machinery be used
What is “identify the finance needed to start up or grow the business “
How ill it be achieved, for example selling shares, or obtaining a loan
What is the “ achieve the business aims and objectives “
For example, making a profit , expected sales , achieving social goals
What is success in business planning
For a business success can take many forms, including making a profit, surviving and providing a good service to customers.
