| Whats a Business Plan? | A document that contains the Business, the Objectives, the Strategies, the starting market and the Financial Forecasts. |
| Why is a Business Plan important | -Gives a focus on the Business idea. Is it good, why?
-It can exam the Financial viability of the idea. Can the Business sustain itself with cash and expectations?
-It gives encouragement to the Owners, too see what the Business is about.
-Making a document can help spot gaps and deal with thoughts.
-Helps in getting finance from outside providers. e.g the Bank
-The Plan makes a Logical structure that is thinking about the business. It organises the Business
-The Plan says something. This can be used to measure actual Performance |
| What should be on a Business Plan? | -The Idea; a description of the business [idea]
-Where it came from, and why its good [idea]
-Objectives and key Targets for the Business [sales, profit, growth and a sense of Direction. This is for the next 3-4 years]
-Finance needed. How much from Owners, and how much to be loaned
-Market overview; the summary of Market Research, Segments, Size, Growth, Shares and Competitors. [known]
-How it will operate [location, premises, staff, distribution methods]
-Cash flow forecast.
-Forecast revenue. Costs and Profits |
| What are the advantages of a Business Plan? | -Can be a final result to if the future will be profitable
-Can be used as a guide for the business. It tells it what to do and when
-See its progress, and make adjustments if needed
-Secure finance. Banks will see you as more organised, increasing the change of a loan
-Market research lowers the risk of failing |
| What are the Dis-advantages of a Business Plan? | -Poor plan [from experience] equals poor performance.
-Plans has to be continually updated, as the internal and external environment will change
-Time and Effort is used on making and reviewing a plan. This can be expensive for small businesses
-New Opportunities could be missed out if not on the Plan |
