Business plan

• Why should a Business do a business plan.

  • When applying for a loan/grant.
  • Identify the goals and strengths of the business.
  • To provide data about the business to other interested parties.
  • To measure how well the business is achieving its objectives.
• • Factors that a business should take into account when deciding on the correct level of staff to keep is the storage : does the business have enough space to hold the required level of stock.
  • Is the business selling goods that are perishable, if so the amount of stock left should be kept to a minimum to avoid waste.
• How to reduce bad debts Debts that can’t be recovered. They arise when goods that have been sold on credit are not paid for.

  • Suppliers could offer cash discounts to those who pay quickly and charge interest on overdue accounts.
  • Credit Checks: a customer credit worthiness should be carried out before any credit given.