1.2 Business planning

• Aims and objectives


  Statements of what the business is trying to achieve, such as grow larger or make a profit
• Business plan


  A simple plan which sets out details of the product or service being sold and how it will be financed, marketed and details of market research findings
• Finance


  A business word used instead of money. The finance needed to start a business is the money required to buy the resources needed
• Markets


  Where a business sells its goods or services
• Resources


  The things a business needs to make it work, including staff and materials
• SMART objectives


  • Specific
  • Measurable
  • Achievable
  • Realistic
  • Timely
• Achievable


  • The targets are possible for the business to achieve
• Realistic


  • The targets are appropriate for the business
• Timely


  • The plan includes a deadline for achieving the targets
• Identifying the market


  The age, gender and income of target customers
• Identifying the resources needed

  Workers, type of equipment or machinery to be used
• Identify the finance needed


  To start up or grow the business and how this will be achieved, for example, selling shares, obtaining a loan or overdraft
• Achieve the business' aims and objectives

  For example, making a profit, expected sales, achieving social objectives
• A business plan details how a business intends to achieve its aims and objectives