Business planning

• A business plan is a document setting out what a business does and what it hopes to achieve in the future.
• Business planning is the process of producing a business plan.
• Uncertainty occurs when there is a lack of information about a situation. Leads to outcomes becoming difficult to predict.
• A risk is the possibility of something going wrong.
• Revenue is the income that a firm receives from selling its goods or services.
• TC = Total Costs

  FC + VC
• FC = Fixed Costs

  FC are those costs that don't change based of a business's output. Eg. rent
• VC = Variable costs

  VC are costs that change based of a business's output. Eg. Resources