Planning

• Business plan


  document which sets out the future plans for a business.
• The owner may then show the plan to a bank or another investor to ask for finance to help the business grow. To persuade lenders that the business is worth investing in, the owner will need to show that the business has a good chance of making a profit to be able to pay back interest and loan capital on any finance taken out.
• A cash flow forecast on the plan will show the expected income and expenditure of a business over the coming year. A cash flow forecast will show the liquidity of the business and its ability to pay it's bills. A business plan will NOT improve cash flow, that will be down to how well the business trades.
• A business plan includes

  1. Name of the business
  2. Product/services
  3. Market it is aimed at
  4. 4 Ps
  5. Human resources
  6. Production costs
  7. Potential supplier of materials, premises
  8. How will it be finance
  9. Financial information
• Purpose of a business plan

  • To help set up a new business
  • To help the business raise finance
  • To help the business to set objectives
  • To outline how functions of the business will be organised
• To help set up a new business

  • Will help entrepreneurs to decide what resources they need to start their business : human resources, equipment, raw materials, technology.
• To help the business to set objectives

  • Shows a business aims
  • It may show any planned activities of the business
  • It should also show any potential investors what amount of sales and profit the business aims to achieve.
• To outline how functions of the business will be organised

  • Show how many staff amd locations of the departments.