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Theme 2:The business plan
Research has shown that businesses are more likely to succeed when the entrepreneurs have created a detailed plan.
Any good business plan should contain at least the following:
Factors of a business plan | Details | |
|---|---|---|
Executive Summary | A one-page overview of the business outlining its purpose and the opportunity. | |
Business idea and opportunity | An outline of the business idea and concept so that all stakeholders can understand the owner’s intentions. | |
Aims and objectives | Aims and objectives should be SMART (specific, measurable, achievable, realistic and time-related) The owner will measure their success against these targets. | |
Market research | Market research into the target market, the market and other competitors. | |
Financial forecasts | These will include forecasts on costs, revenue, profit and cash flow ( cash flow forecast, budgets and break-even analysis) | |
Sources of finance | A plan on how th business will be financed and how any borrowings will be repaid. | |
Premises and equipment | The location of the business and its rationale (explanation). How this will be financed and any other equipment the business will need) | |
Personnel | An organisation chart outlining the personnel in the business, their areas of responsibility, skills and qualifications. | |
Buying and production | Details of how the product will be produced including details of the suppliers. |
Risk and planning
Owners can never be 100 per cent certain of their decisions and fortunes when starting a business, but the depth and detail of business planning reduce the risk associated with unforeseen problems and poor decision-making and increases the likelihood of success.