Business planning - topic 1.6

• A business plan states what a business is trying to achieve over the next few years and how it intends to accomplish these aims.
• Business planning is the process of process of producing a business plan.
• A loan is an amount of money provided to a business for a started purpose in return for regular repayments.
• problems of business planning: uncertainty, lack of experience, change
• Uncertainty is when there is a lack of information about a situation
• A risk is the possibility of something going wrong.
• Main sections of a business plan

  • background information
  • an analysis of the market
  • firms objectives
  • analysis of financial position
• Revenue is the income that a business receives from its sales and other activities.
• Total costs are fixed costs plus variable costs.
• Fixed costs are costs that do not change with the level of output.
• Variable costs are the costs that vary directly with the businesses level of output.
• profit= revenue - total costs