Unit 1.6 - Business planning

Question 1

Purpose of a business plan (5)

Answer 1

Outline of what it will do and how it’s going to do it
To organise resources required
Convince financial backers
Should help bad ideas to be stopped, not to waste time and money
Decide what the business wants to achieve - aims and objectives

Question 2

Main sections of a business plan (7)

Answer 2

Owners details
Mission statement
Objectives 
Product description
Production details
Staffing requirements
Finance

Question 3

Issues of a business plan (4)

Answer 3

Time consuming
Costly - cost may outweigh the benefit
Bias - may be too optimistic
Too rigid - stick to the plan too much