Developing a Business Plan

• SWOT analysis

  1. Strengths are good internal things about the business e.g the product
  2. Weaknesses are poor internal things about the business e.g. outdated equipment
  3. Opportunities are good external factors that the business can use to its advantage
  4. Threats are external factors that could threaten the business e.g. change in consumer taste
• A business plan is like a road map; it should help you decide whether you should or shouldn't pursue your business idea
• A business plan will contain the following

  1. description of business and product
  2. key personnel/team
  3. marketing
  4. production
  5. finance
  6. other relevant information
• A mission statement states the goals of the business
• The marketing section of a business plan includes market research, target customers, pricing strategy, distribution channels, promotion strategies
• Reasons for developing a business plan

  1. to raise finance
  2. identify strengths and potential weaknesses
  3. to communicate
  4. to measure success
• who looks at a business plan

  1. financial institutions when the business is looking for a loan
  2. government agencies when promoting the business or giving grants
  3. investors/shareholders who wish to invest money