Business plan

• What are the four factors of location?

  Proximity to market, competition, materials, labour
• What are the ways to add value to a product?

  Convenience, branding, USP, quality, design
• Why are large sample sizes easier to analyze?

  They provide more reliable numerical data
• What is market segmentation?

  Splitting the market into subgroups based on characteristics
• What is a focus group?

  A small group providing qualitative feedback
• What is the difference between cash and profit?

  Cash is for expenses; profit is leftover money
• What is the importance of a business plan when starting a new business?

  • Provides direction and objectives
  • Helps secure financing
  • Reduces risk through planning
  • Allows for progress review
  • Identifies advantages and disadvantages
• What is a business plan?

  A written document describing a business
• What information should be included in a business plan?

  Business name, objectives, finance, market overview
• What are the objectives and key targets for a business?

  Sales, profit, growth for the next 3-4 years
• Why is a cash-flow forecast important?

  To ensure the business does not run out of cash
• What are the advantages of a business plan?

  Reduces risk, reviews progress, secures finance
• What are the disadvantages of a business plan?

  May be poor quality, requires constant updating
• How can market research reduce the risk of failure?

  By providing accurate data for informed decisions
• What are the consequences of not creating a business plan?

  • Increased risk of failure
  • Lack of direction and objectives
  • Difficulty in securing financing
  • Missed opportunities for growth
• 1. Conduct a SWOT analysis. 
  2. Define your business objectives. 
  3. Conduct market research. 
  4. Identify your target audience. 
  5. Develop a marketing plan. 
  6. Create a financial plan. 
  7. Write your business plan.