Business example

To what extent will a business plan guarantee the success of Pierre’s T-shirt business? (15 marks)Marks awarded 10 -12A business plan is a set of documents summarising its operational and financial objectives for the future, detailing how they will be achieved and when by. The case includes a cash flow which would form a central part of the business plan.Next Paragraph.The cash flow helped Pierre secure an overdraft. The cash flow showed the bank manager that he would be able to cover the overdraft by the third year – this evidence must have secured the overdraft. Since Pierre had limited start up capital (£15,000) without the overdraft he probably wouldn’t have had sufficient funds to start up. .Next paragraph.Furthermore, the business plan is useful because it predicts growth in expected market share. This shows how the business plan can help organise how much stock Pierre should be buying and how many employees he should hire for example. Furthermore, without the expected sales included in the business plan, Pierre might rent out too small or too large premises.  All in all, most decisions Pierre makes are based on the…