Business planning

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  • Unit 1.2 Business planning
    • The role of a business plan
      • Identifying markets
        • A business plan helps a business to think clearly about who it is targeting its products or services at. Remember, this is an important part of business development because it will help determine for example thet type of marketing the business will need to undertake
      • Helping with finance
        • If a new business requires some finance from a bank, having a business plan will show that careful thought had been given to all aspects of starting and running the business. A bank is more likely yo lend a business money if it is confident in being repaid
      • Identifying resources that a business needs to operate
        • A business plan requires those involed in the business to consider what resources are needed. This could be equipment, finance or additional people with particular skills which are needed for the business. It could also be the premises where the business will operate from. It is vital for the business to be clear on what resources that they need otherwise by a potential invester it will show that the business hasnt given enough though into the operations
      • Achieving business aims and objectives
        • Setting out aims and objectives within a business plan with an appropriate timeline gives a business the best chance of achieving its aims. This is because setting out these aims and objectives requires careful thought, research and consideration of all aspects of running the business
    • Importance of a business plan
      • If a business does not complete a business plan it may not identify the correct market or the resources and staff it needs to succeed. This may be costly for the business.
    • Usefulness of a business plan
      • Not writing a plan will however put greater risk on the business because the initial ideas may not been fully thought through. Writing a plan will only reduce risks to a business not eliminate it.
    • Key facts
      • A business plan is normally written when a business starts or when an important change to the business takes place
      • Planning is a vital part in the successful start-up and development of a business
      • A number of people as well as the owner of the business will be interested in seeing the business plan
      • A business plan is useful when someone is simply trying to see if a business idea will really work before actually starting the business
    • Usefull words
      • Business plan- is a simple plan which sets out details on the product or service being sold where the finance is to come from to start the business how th product or service is to be marketed and the market research to show there is a need for what is being sold
      • Finance- is a business word used instead of money. The finance needed to start a business is the money that is needed to do so
      • Markets- are where a business sell its goods and services
      • Success- for a business can take many forms including making profit, surviving and providing a good service to customers
      • Resources- are the things a business needs to make it work including finance, staff and materials
      • Operate- is a term used to explain how a business works
      • AIms and objectives- are the things that a business is trying to achieve such as grow larger or make more profit


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