Business plan

• What is a business plan?

  A document detailing each element of a business
• Why does an entrepreneur create a business plan?

  To consider all elements of their business
• What are the main sections of a business plan?

  • Business idea
  • Aims and objectives (SMART)
  • Target market
  • Revenue forecast
  • Projected costs and profit
  • Cash flow forecast
  • Sources of finance
  • Location
  • Marketing mix (four Ps)
• What does SMART stand for in business objectives?

  Specific, Measurable, Agreed, Realistic, Time-bound
• What is the purpose of market research in a business plan?

  To understand the market and potential customers
• What are the two types of market research?

  Primary and secondary research
• What is a cash flow forecast?

  A prediction of money coming in or out
• How does a cash flow forecast help an entrepreneur?

  It identifies potential times of financial loss
• Why is a business plan essential for raising finance?

  It provides evidence of business potential
• What do banks consider when reviewing a business plan?

  Whether the business is likely to succeed
• What is the primary purpose of an investor regarding a business plan?

  To ensure they will not lose money
• What might happen if a bank finds a business too risky?

  It may refuse to lend money