The business plan (Edexcel GCSE Business): Flashcards
📚Flashcards
Practise the cards
13 cards from this deck
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Practise the cards
13 cards from this deck
Definition of a business plan
Definition of a business plan
Comprehensive roadmap predicting sales, costs & cash flow for new venture
Key financial elements in business plans
Key financial elements in business plans
Sales figures, costs, and cash flow
Why banks require business plans
Why banks require business plans
Shows entrepreneur thought carefully & understands financial commitments
Purpose: Making financial predictions
Purpose: Making financial predictions
Estimate income/expenses to assess viability & profitability
Purpose: Understanding customers
Purpose: Understanding customers
Research to offer products people actually want to buy
Purpose: Market research
Purpose: Market research
Info on competitors, market conditions, industry trends
Most critical function of business plan
Most critical function of business plan
Risk reduction by identifying potential problems early
Two typical business plan components
Two typical business plan components
Cash flow forecasts and clear business objectives
How owners use business plans
How owners use business plans
As working documents and guides to measure progress
What banks assess in business plans
What banks assess in business plans
Likelihood of success and lending risk
What investors focus on in business plans
What investors focus on in business plans
Growth projections and strategy for returns
Key consideration for plan content
Key consideration for plan content
Relevant and realistic information
Two main reasons to create business plans
Two main reasons to create business plans
Securing bank funding & monitoring performance