Business Plans

1
Business Plans

• The detail.

2
Aims

• Recap purpose of business plans
• Recap what goes into a business plan.
• To understand the sources of information used in
  business plans
• To be aware of the guidance available when
  creating a business plan
• To be able to evaluate the usefulness of business
  plan process.

3
Quick questions.

• List the key areas of a business plan use the
  sub heading of non-financial items and financial
  items.
• Identify three different stakeholders that might
  be interested in the business plan. Explain why
  they might be interested.
• Where might an entrepreneur gather the
  information required for a business plans?

4
Watch DVD

• Working Lunch Series 5 11 Preparing a business
  plan
• Child activity/parent cafe

5
Business Plan Content

• The Marketing Plan
• Market analysis showing level of demand
• Who customers are and what they want
• The strengths and the weaknesses of competitors
• The marketing mix product, price, place and
  promotion.
• The Production Plan
• The methods and stages of production
• The premises and equipment needed
• Ways of ensuring quality
• The Financial Plan
• Sources of finance required
• Profit forecast/break-even analysis
• Cash flow forecast.

• Introduction
• Basic business details
• The type of legal ownership
• The goals of the business
• The Business Idea
• The product/service to be provided
• Summary of the key selling points
• Management and Personnel
• The roles of the managers
• The experience and skills of the workforce.

The exam board expect you to know the content of
a business plan!
6
Sources of information and guidance when creating
a business plan
7
Sources of information guidance

• Banks
• Accountants, solicitors, Insurance advisors
• Small Business Advice Service
• www.smallbusiness.co.uk
• Small business advisors
• Government agencies Dept of Trade Industry,
  Business Link, Her Majestys Revenue Custom
• Chamber of Commerce
• Princes Trust Charity support for 18-30s to
  set up businesses
• Shell Live Wire for 18-30s to set up businesses

8
Applying this theory to a specific case study.

• Using the laminated 20 case studies youll be
  given one sheet to use for this activity

9
To the worksheet.
This is an example of application skills
relating theory to a specific business
Where could the entrepreneur in your case study
gather this information from?
10
Where can the entrepreneurgather info on

• Basic business details, The type of legal
  ownership, The goals of the business?
• The experience and skills of the workforce?
• Market analysis showing level of demand ? Who
  customers are and what they want?
• The strengths and the weaknesses of competitors ?
• The methods and stages of production? The
  premises and equipment needed? Ways of ensuring
  quality?
• Profit forecast/break-even analysis? Cash flow
  forecast?

11
Strengths and weaknesses of Business Plans
12
Benefits of a Business Plan

• Provides focus and direction
• Tests the viability of the business proposal
  through financial forecasts
• Convinces investors or lenders
• Plans and review business strategy

So what moment. How to analyse issues
13
(No Transcript)
14
Drawbacks of Business Plans
So what moment. How to analyse issues

• Lack of flexibility
• Collecting accurate information
• Takes time and commitment
• Planner lacks skills or expertise to analyse
  results
• What if the business plan is based on inaccurate
  data
• Unrealistic financial projections

15
It is not the plan that is important its the
planning!
16
Plenary
17
True or False?

• A Business Plan guarantees a firms success?

Why?
False.
18
True or False?

• A Business Plan should only be produced when a
  business starts up.

Why?
False.
19
True or False?

• A Business Plan would be shown to a bank manager

Why?
True.
20
True or False?

• A Business Plan would usually include a sales
  forecast.

Why?
False.
21
What element of a business plan would you say was
the most important?
Why?
22
Textbook issue out, each has your name on it!

• HOMEWORK Read textbook p25- 27 on business plans