Business Plan Fundamentals: Adrenaline Rush

Overview of Grade 9 Economic and Management Sciences

Adrenaline Rush: Part 22 Business Studies focuses on the creation of a business plan for a theme park ride. This project involves thorough research and a clear vision for a new business.

Definition and Importance of a Business Plan

A business plan is a formal document describing the future strategy and financial development of a business, serving as a road map toward the destination of profit.

Importance

  • Arranges thoughts logically and identifies risks.

  • Sets goals and provides guidelines for management and decision-making.

  • Essential for acquiring finance from commercial banks, governmental institutions, NGOs, or a Venture capitalist (someone who invests in a young business).

Management Plan and Functions

The management plan details staff recruitment, job descriptions, and the record-keeping system, often illustrated via an organogram (organizational chart).

Four Main Management Functions

  1. Planning: Deciding objectives and how to achieve them.

  2. Organising: Allocating people and resources to tasks.

  3. Leading: Providing instruction and motivation to employees.

  4. Controlling: Checking progress through performance reviews and quality checks.

Marketing Plan and Business Goals

The marketing plan identifies the target market and location. Businesses attract customers using the 44 P’s:

  • Product

  • Price

  • Place

  • Promotion

Business goals explain the what, where, how, when, and why regarding the business idea's profitability.

SWOT Analysis

A SWOT analysis identifies internal and external factors:

  • S: Strengths (unique features).

  • W: Weakness (areas for improvement, e.g., poor service).

  • O: Opportunity (advantages to use, e.g., Covid-19 creating masks as a product).

  • T: Threat (negative influences from competitors).

This exercise involves analyzing 44 theme parks, including Gold Reef City.

Financial Plan

The financial plan details start-up costs and classifies expenses:

  • Fixed costs: Remain the same regardless of products sold (e.g., Rent expense).

  • Variable costs: Increase as production increases (e.g., Water and Electricity).

Questions & Discussion

  • What is a business plan?

  • Provide two reasons why proper planning is important.

  • Provide the essentials for a business plan.

  • Name the information found in a marketing plan.

  • Explain the meaning of an organogram.

  • List the information needed in a management plan.

  • What are ‘start-up’ costs?

  • Name the areas required for a SWOT-analysis.