Learn Unit 1, Section 1.3 Business Planning

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1. What is a business plan?
A business plan is a document which sets out where the firm is heading and how it intends to get there.
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2. List 4 reasons why an entrepreneur needs to create a business plan.
1. To get finance from a bank 2. So everyone knows what they are doing 3. Helps predict any problems 4. allows you to monitor success and plan for improvement
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3. List four sections of a business plan
1. Description of the business 2. Aims and objectives 3. Research 4. Financial information.
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4. Why might an entrepreneur have problems creating a business plan?
•Lack of experience may mean that they are unable to accurately predict their sales •Lack of experience may mean they can't predict their costs and complete the financial section •The entrepreneur may not know the market and sells and what doesn't
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5. List 4 ways in which an entrepreneur can get help to avoid the risks.
•Talk to experts and consultants •create a business plan. This will help them look ahead, identify and avoid risks.•Keep reviewing the business plan and make sure it is up to date •Carry out market research before writing your business plan
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6. Will a business plan ensure that a business is a success?
It will not ensure it is a success. For example a new product may come onto the market and the product might not sell. But creating a business plan does help to predict problems and allow the entrepreneur to plan for them.
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7. When a person goes into business they face a lot of risks. Explain two risks which an entrepreneur may encounter?
1. They may not know the market and what sells and what doesn't sell. 2. Lack of experience may mean that they are unable to accurately predict their costs.
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Card 2

Front

2. List 4 reasons why an entrepreneur needs to create a business plan.

Back

1. To get finance from a bank 2. So everyone knows what they are doing 3. Helps predict any problems 4. allows you to monitor success and plan for improvement

Card 3

Front

3. List four sections of a business plan

Back

Preview of the front of card 3

Card 4

Front

4. Why might an entrepreneur have problems creating a business plan?

Back

Preview of the front of card 4

Card 5

Front

5. List 4 ways in which an entrepreneur can get help to avoid the risks.

Back

Preview of the front of card 5
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