A plan for the development of a business, giving forecasts of items such as sales, costs and cash flow
What’s the role of a business plan?
To identify;
The business idea, aims and objectives, target market, revenue forecast, cost and profit, cash flow forecast, sources of finance, location and marketing mix
Who uses a business plan?
Owners - guide and working document,
Partners and employees,
Investors - to assess the risk and reward of investing in the business,
Lenders - to investigate the likely success and risk of lending to a new business
What’s the purpose of a business plan?
To minimise risk,
obtain finance - from a bank,
Identify customer needs,
Formulate market research,
Provide information,
Provide the owner with a ‘planofaction’
Forecast financial projections
How can a business plan be useful?
Good forecasting and planning reduces the level of risk, and increases the likelihood of a reward
