Ch22: Business Plan

• SWOT Analysis:

  • Strengths - Inside the business, these are the positive points about the business. Ex) friendly staff, unique product
  • Weaknesses - Inside the business, these are negative points about the business that can be a problem. Ex) Lack of finance, unreliable machinery
  • Opportunities - Outside the business, these are anything that could potentially help the business to be more successful. Ex) New markets, improving economy
  • Threats - Outside the business, these are anything that can negatively impact the business. Ex) New tax introduction, new competitors, economic recession
• Function of a Business Plan:

  • To see the short, medium and long term goals of the business
  • To outline how the business aims to achieve these goals
  • Allows the business to identify problems and take action to solve the problems
  • To provide information about the business to others, allowing them to see how well the business is established. Ex) investors
• A business plan should be S-M-A-R-T;

  S, Specific - Clear and precise targets must be set for the business. Ex) increase sales by 5% by August 2025.

  M, Measurable - the plan must be possible to measure in figures or units if it ever occurred.

  A, Achievable - the plan of the business must be achievable in the given time frame.

  R, Relevant - the plan must be relevant to the success of the business

  T, Timing - a time limit must be set otherwise the staff will be turned off