ATAR Business and Enterprise: Business Plans

Vocabulary flashcards outlining the core components, definitions, and concepts of business planning based on the 11 ATAR Business and Enterprise lecture.

Purpose of a Business Plan

The overarching reason a business exists and how it plans to achieve its overarching mission.

Intent of a Business Plan

The specific goal or outcome a business plans to achieve by producing the plan based on its current situation, such as securing start-up funding, guiding expansion, or managing succession.

Executive Summary

A concise overview of a business plan that provides stakeholders with a snapshot of the business's current position, future expected position, and key proposal highlights.

Business Concept

A concise description of the fundamental purpose, products or services, target market, and value proposition of a business.

Vision Statement

A concise summary of a business's long-term aspirations that paints a picture of where the business aims to be in the future.

Mission Statement

A concise declaration of a company's core purpose, overarching goals, values, and principles that guides its strategic actions.

Business Values

Core principles that guide a business's behavior, decision-making, and workplace culture.

Operations Strategy

A section of a business plan describing how a company manages its day-to-day production activities to create its products or services.

Trading Business Operations

Operational planning for businesses that order finished goods to resell, focusing on main suppliers, storage, display, distribution, inventory turnover targets, and re-supply timelines.

Manufacturing Business Operations

Operational planning for businesses that make their own products, focusing on production processes, raw materials, required machinery, building size, and finished goods inventory.

Marketing Plan

A section of a business plan detailing how a company intends to promote its products or services, target its audience, and achieve revenue objectives.

SWOT Analysis

A strategic planning tool used to evaluate internal Strengths and Weaknesses along with external Opportunities and Threats facing a business.

Strengths (SWOT)

Internal attributes and resources of a business that provide a competitive advantage and assist in operating efficiently.

Weaknesses (SWOT)

Internal factors and areas of concern within a business that may lead to poor results or failure.

Opportunities (SWOT)

External environmental factors and trends that a business can leverage to its advantage.

Threats (SWOT)

External environmental factors that could negatively impact the success of a business.

Financial Plan

A section of a business plan providing comprehensive financial forecasts, budgeted statements, and estimates of future earnings.

Sales and Purchases Forecast

A financial estimate layout predicting the expected volume of sales and required purchases for the upcoming business year.

Budgeted Profit and Loss Statement

A financial projection outlining predicted income, expenses, and net profit for a future period.

Budgeted Monthly Cash Flow Statement

A financial statement predicting monthly cash inflows and outflows across assets, liabilities, equity, income, and expenses.

Break-Even Analysis

A calculation used to determine the total volume of unit production needed to cover all costs, marking the point where a business transitions from loss to profit.

Break-Even Units Formula

The mathematical formula used to calculate break-even output quantity: $\text{Break Even Units} = \frac{\text{Fixed Costs}}{\text{SP} - \text{VC}}$, where $\text{SP}$ is selling price per unit and $\text{VC}$ is variable cost per unit.

Break-Even Chart

A visual chart mapping fixed costs, total costs, total revenue, break-even point, loss zone, and profit zone against production volume.

Human Resource Management (HRM) Plan

A strategic plan outlining how a company manages its workforce, including staffing requirements, recruitment, training, performance management, staff relations, and separation.