Business Paper 1 - Business Plans (102)

Business Plan

makes clear of the objectives of a business and how the business intends to achieve them

• helps to secure finance

• owners can check progress against the objectives

• act as a guide to make decisions

Executive Summary

provides an overview of the business aims, objectives and strategies and is evidence the proposal is viable

it sets out how the business is going to be run

Marketing Plan

market research carried out to establish the size of the market, through needs of customers and level of competition

the marketing strategy includes price, product, promotion and place (marketing mix)

Operations Plan

includes details of where the business will relocated, production methods and any equipment needed

plus, any information on the cost of production and where the business will buy its supplies from may be included

HR Plan

the number of employees and the skills, experience and qualification they require will be outlined

any management team will be identified

Financial Plan

• break-even analysis

• cash flow forecast for the first 12 months

• profit and loss balance forecast for the end of the first year

• sales forecast indicating potential revenue

• + available start-up capital as well as any potential borrowing

Business Plan (Advantages + Disadvantages)

Advantages:

• presents clear set of instructions on how to run a business - helps to think ideas through - clear idea of idea of direction ad operation - smoother

• needed for potential investors or seeking finance from banks

Disadvantages;

• inaccurate business plan with unachievable objectives can give entrepreneurs false hope - failed investments

• hard to predict costs and profits accurately due to fast-changing markets

Help to make a business plan?

• government

• banks

• investors