business plan

    Cards (6)

    • business plan - statement made by a business which outlines the objectives of the business and how to achieve it
    • How a business plan is used
      • Make sure the firm develops a healthy financial structure
      • Identify problems
      • Set target and check firm developments
      • provide realistic expectations to achieve
      • Specific ,achievable, time-based and measurable objectives
    • Why make a business plan - Financial institutions (Banks) will not lend money to businesses that have not set out all of their plans as the consequences that could rise could make the investment risky
    • What a business plan needs to include:
      • Executive summary - synopsis of plan (set aims + objectives)
      • The market - size , share , competitors
      • Marketing strategy - research customer needs and how the business will try to achieve it
      • What makes your business different from the rest
      • Skills of entrepreneur and other employees
      • Financial forecast
      • Estimate of cost , revenues and profit
      • Sales estimate
    • Advantages of business plan
      • Sets clear instructions on how to run business
      • check progress and take action if objectives not achieved
      • See where its going wrong
      • Monitor cash flow
    • Disadvantages of business plan
      • Market research costs money and time , those resources could be spent on other areas of business
      • Cannot predict the income
      • No business plan means investors will be unlikely to invest into the business
      • Inaccurate business plan with unachievable objectives can mislead entrepreneurs and lead to failed investment
      • Most new business will not have market research and take educated guess which can be a weakness of the business plan
    See similar decks