Planning a Business and Raising Finance

These flashcards cover essential terms and concepts related to business planning and finance.

A documented plan for the development of a business is called __.

Business plan

The __ provides an overview of the startup, describing the business opportunity, marketing strategy, operations, and finance.

Executive summary

An __ is a quick, concise pitch delivered in 2 minutes introducing the business, its aims, and target market.

Elevator pitch

The part of a business plan where the size of the potential market and customer profile are detailed is called __.

The market

__ is the profit after tax that is kept back in the business and is a cheap source of finance.

Retained profit

The method of financing where an asset is sold and then leased back is known as __.

Sale and leaseback agreement

One advantage of internal finance is that capital is available __.

immediately

A __ is an arrangement where the amount borrowed must be returned over a fixed period in regular payments.

Loan

__ refers to the large scale production of standard products, typically on a production line.

Flow production

Quality management aims to ensure that each product has __ at all stages of production.

no defects

In monetary terms, the difference between total cash inflows and total cash outflows is known as __.

Net cash flow

A __ is the predicted future sales revenue based on previous sales data.

Sales forecast

The __ is the percentage of a firm’s total possible production that is actually being used.

Capacity utilization

Excess inventory held by a business to cope with unforeseen demand is known as __.

Buffer stock

Under the Consumer Protection Act, businesses must ensure products are __ and fit for purpose.

undamaged