Business planning

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  • Created by: LivStorm
  • Created on: 15-06-21 16:02
What is a business plan
A document setting out the future plans for the business.
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What is a business plan used for
How a business owner will explain how they will turn their idea into a successful business.
Owner may then show the plan to a bank or another investor to ask for finance to help the business grow and expand.
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Why a business writes a business plan
Persuade lenders the business will make enough profit to be able to pay back interest and capital on any finance taken out
Attract new customers
Give the owners some direction
To set SMART targets and objectives
Help to identify early problem areas the bu
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A good business plan should include...
Executive summary of whole plan, quick idea
The business and its products/services
The market and competitors
The marketing plan (4Ps)
Organisational design (HR - who will work there)
The production plan (costs and potential suppliers)
Premises and how it
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4 purposes of a business plan
To help set up a new business
To help the business raise finance
To help the business to set objectives
To outline how functions of the business will be organised
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Explain - To help set up a business
Will help entrepreneur to decide what resources they need. HR, equipment, raw materials, technology, vehicles.
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Explain - To help the business raise finance
May help persuade lenders the business will make enough profit and can pay back finance taken out. Should include a cash flow forecast and sales forecasts. May help obtain finance as lenders will want to see numbers saying business will make profit and gr
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Explain - To help the business to set objectives
Can show how a business aims to achieve its goals. May show any planned activities. Show potential investors profit and sales aims. Should set SMART goals and objectives for their business to follow. Can monitor is business is meeting objectives. May also
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Explain - To outline how functions of the business will be organised
May show how many staff and location of departments (Production, Marketing, HR, Accounting and Finance). May not be relevant in a small business because the owner may just carry out all the functions.
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Other cards in this set

Card 2

Front

What is a business plan used for

Back

How a business owner will explain how they will turn their idea into a successful business.
Owner may then show the plan to a bank or another investor to ask for finance to help the business grow and expand.

Card 3

Front

Why a business writes a business plan

Back

Preview of the front of card 3

Card 4

Front

A good business plan should include...

Back

Preview of the front of card 4

Card 5

Front

4 purposes of a business plan

Back

Preview of the front of card 5
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