the business plan

• what is a business plan?

  a business plan is an outline of what a business will do and how it aims to do it
• how can plans be used on financial backers?

  they convince financial backers (banks) that the idea is a sound investment
• what is the purpose of a business plan?

  • good guide for business to follow
  • higher chance of success
  • highlight goals and aspirations
  • outlines problems which can be fixed quicker
  • outlines route ahead
  • gain support from banks and other potential financiers
• what does a business plan contain?

  • financial goals
  • aims and objectives
  • business details
  • business ideas - USP
  • financial forecasts
  • location
  • marketing mix - 4Ps
• pros of a business plan

  • see what you be achieved
  • see what level your business is at
  • help you succeed
  • guides you
  • calculate finance
  • gives ideas and solutions to problems
  • manage risks
  • break even output
• cons of a business plan

  • can get confusing if not organised
  • only a plan - reality can be different
  • dangers of becoming stuck in a plan
  • business can aim too high - end up with problems later on
  • time consuming
  • costly
• what is a mission statement?

  it outlines the broad aims of the company
• one reason why it is a good idea to write a business plan

  the plan can be used to convince the bank that the business is a sound investment, so it would help same to get the money he needs to start the business
• two reasons on how a business plan can cause problems in the future

  • businesses get too optimistic, could end with problems later on such as struggling to pay his bills if he doesn't make enough money
  • changes in the business environment that some haven't accounted for in business plans, such as competitors entering the market