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A business plan explains how an entrepreneur will make money and what the starting costs of the business will be - NSC Agricultural Management Practices - Question 3 - 2016 - Paper 1

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A business plan explains how an entrepreneur will make money and what the starting costs of the business will be. 3.1.1 Give THREE reasons why it is necessary to de... show full transcript

Worked Solution & Example Answer:A business plan explains how an entrepreneur will make money and what the starting costs of the business will be - NSC Agricultural Management Practices - Question 3 - 2016 - Paper 1

Step 1

Give THREE reasons why it is necessary to develop a business plan.

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Answer

Clarity of Vision: Developing a business plan helps entrepreneurs clarify their business goals, providing a structured approach to achieving them.
Funding Assistance: A well-prepared business plan is essential when seeking funding from investors or financial institutions as it outlines the feasibility and expected profitability of the business.
Risk Management: A business plan allows entrepreneurs to assess potential risks and challenges, enabling them to create strategies to mitigate them effectively.

Step 2

Select TWO factors from the SWOT analysis method that will affect the analysis as follows:

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(a) Internally

Strengths: Positive attributes of the business that can be leveraged, such as unique skills or resources.
Weaknesses: Internal factors that may hinder the business’s performance, like limited experience or lack of capital.

(b) Externally

Opportunities: External conditions that could be favorable for business growth, such as market trends or technological advancements.
Threats: External challenges that may pose risks to the business, including competition or economic downturns.

Step 3

Define the term entrepreneurship.

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Answer

Entrepreneurship is the process of discovering, evaluating, and exploiting opportunities to start and grow a new business. It involves taking calculated risks to create and manage a business venture that meets the needs of the market.

Step 4

Identify THREE characteristics of entrepreneurs.

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Strong Self-belief: Entrepreneurs have confidence in their abilities and ideas, which drives them to take risks.
Initiative: They are self-starters who actively pursue opportunities and do not wait for others to act.
Visionary: Entrepreneurs think ahead and anticipate future market trends, allowing them to position their business advantageously.

A business plan explains how an entrepreneur will make money and what the starting costs of the business will be - NSC Agricultural Management Practices - Question 3 - 2016 - Paper 1

Worked Solution & Example Answer:A business plan explains how an entrepreneur will make money and what the starting costs of the business will be - NSC Agricultural Management Practices - Question 3 - 2016 - Paper 1

Give THREE reasons why it is necessary to develop a business plan.

Select TWO factors from the SWOT analysis method that will affect the analysis as follows:

(a) Internally

(b) Externally

Define the term entrepreneurship.

Identify THREE characteristics of entrepreneurs.

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