Miss Foley

Unit 5- Chapter 14- Getting Started

LC Business

Business Plans
A Business Plan:

States the aims, policies and specific objectives of the business

Describes the nature of the business
Outlines the people involved
Explains how production will happen
Documents how marketing will happen
Illustrates how the business will be financed

The Importance of a Business Plan

It forces entrepreneurs to think about what they will do- it sets clear goals
It helps to anticipate problems and devise solutions
It assists management control by providing something to measure against
It encourages investors
It convinces banks to give loans- establishes viability
It convinces suppliers to give credit- establishes viability
It assists control
It improves co-ordination

The main Elements of a Business Plan

Nature of the business (products/services, aims and nature of business).
2. Ownership and Key Personnel (owners names, founders experience,
type of organisation/legal structure).
3. Production (details of equipment, type of production used, quality control
etc.).
4. Marketing (marketing mix, potential market, target market, product
positioning, competitors strengths and weaknesses).
5. Finance (sources of finance, financial structure of the business, projected
financial statements including cash flow forecasts, sales forecasts and
profit projections).
1.

Miss Foley

Unit 5- Chapter 14- Getting Started

LC Business