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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
Question 3
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.
Answer
Developing a business plan is crucial for several reasons:
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Guidance and Direction: A business plan serves as a roadmap for the entrepreneur, outlining the goals and objectives of the business. It helps in maintaining focus and direction throughout the business journey.
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Financial Planning: It helps entrepreneurs understand their startup and operational costs, enabling them to make informed financial decisions and secure funding from investors or banks.
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Risk Management: A well-crafted business plan allows entrepreneurs to identify potential risks and challenges in the business environment, ensuring better preparedness and mitigation strategies.
Step 2
Select TWO factors from the SWOT analysis method that will affect the analysis as follows: (a) Internally
Answer
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Strengths: These are internal attributes and resources that support a successful outcome, such as a strong brand reputation or skilled workforce.
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Weaknesses: These are internal limitations that could impede success, such as limited financial resources or lack of expertise in certain areas.
Step 3
Select TWO factors from the SWOT analysis method that will affect the analysis as follows: (b) Externally
Answer
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Opportunities: These are external factors that the business could exploit to its advantage, such as emerging markets or favorable regulations.
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Threats: These are external challenges that could adversely affect the business, including economic downturns, increased competition, or changes in consumer behavior.