Business Plans

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Created by
Zahra Ahmed

Cards (13)

  • Define a Business Plan

    -A statement that outlines the way in which a business will attempt to achieve its objectives - giving a clear idea of its operation and direction.
  • Core parts to a successful Business Plan.

    -The introduction or overview-the Executive Statement
    -The Marketing Plan
    -The Operations Plan
    -The Human Resource Plan
    -The Financial Plan
  • What is included in the Executive Statement?

    -This provides an overview of the business’s aims, objectives and strategy, and is evidence that the proposal is viable.
    -It sets out how the business is going to be run.
  • What is included in the Marketing Plan?

    -Important part of any business plan based on both field and desk research.
    -Market research carried out needs, if possible, to establish the size of the market, the needs of the customers and the level of competition. -When market research findings have been examined then the marketing plan can be prepared.
  • What is included in the Operations Plan?

    -Include details of where the business will be located, production methods and any equipment needed.
    -Plus, information on the costs of production and where the business will buy supplies may be included.
  • What is included in the Human Resources Plan?

    -The number of employees and the skills, experience and qualifications they require will be outlined.
    -Any management team will also be identified.
  • What is included in the Financial Plan?

    -Budgets, revenue projections, expenses, cash flow forecasts
    -A variety of forecasting will be necessary:
    • a sales forecast indicating potential revenues
    • a cash flow forecast for the first 12 months
    • a profit and loss and balance forecast for the end of the first year
    • a break-even analysis.
    -In addition, information on where the finance for starting and running the business will come from, indicating the available start-up capital as well as any potential borrowing.
  • Benefits of a Business plan

    -Sets out their objectives and strategy - outlines the way in which they will attempt to achieve their business objectives.
    -Outlines its marketing strategy – researches vital information such as the size of the potential market, the strength of the competition, etc.
    -Clear idea of direction and operation – Strategic planning/setting objectives.
    -Helps to convince banks and lending institutions of its ability to pay back loans – cash flow forecast – without one, obtaining finance from banks, etc. is less likely.
  • More Benefits
    -Highlights strengths and identifies possible problems which can then be dealt with in advance.
    -Sets out what personnel/skills will be required to run the business effectively.
    -Helps them think ideas through – giving a clear idea of direction and operation. May help to identify difficulties that may occur and allow the business to deal with them before they become a problem.
    -Useful as a monitoring tool – e.g. compare actual performance with forecasts in the business plan
  • Drawbacks of a Business Plan
    -May succeed if the product or service proves so popular that sales are very high, and profits are made consistently.
    -May succeed without one if a small, easily managed business e.g. window cleaner.
    -No business can be guaranteed success however good the business plan.
    -External factors may make the business successful even if business plan not drawn up – economic upturn, change in the law/government policies.
  • Does having a Business Plan guarantee business success?
    Those businesses that have a clear plan are more likely to be successful compared to those that do not.- evaluate advantages and disadvantages
  • Websites that offer advice to start- up businesses

    -Business Wales- government run
    -Commercial Banks- advice on how to contract a business plan and gain financial approval
    -The Princes Trust- work with 18 to 30 year old people- Enterprise Programme - offer training and mentor support to funding and resources.
    -British Chambers of Commerce-they provide continued advice and support for local businesses -help business grow, and is the premier private sector source of advice and support for international trade.
  • Pros and Cons- Business Plans

    and Evaluation