Business Planning
Specification:
1.3 Business Planning • the purpose of business planning • the main sections within a business start-up plan • uncertainty and risk for start-up businesses |
Candidates need to understand how business planning assists in the setting up of a business and the raising of finance.
Candidates should know the main sections of a business plan. Candidates will not be expected to write a business plan. Candidates need to be aware of the risks faced by businesses and what can be done to minimise risk. |
Lesson 12:
Purpose Of Business Planning
Lesson Objectives:
- To recall the contents of a business plan (E-D)
- To describe the purpose of a business plan (D-C)
- To apply your knowledge by completing a business plan for a given scenario (C-B)
- To recall the contents of a business plan (E-D)
- To describe the purpose of a business plan (D-C)
- To apply your knowledge by completing a business plan for a given scenario (C-B)
the_importance_of_business_planning_2013.ppt | |
File Size: | 453 kb |
File Type: | ppt |
A business plan is a document setting out what the business does at present, plus what it intends to do in the future and how this will be accomplished. The plan will include marketing and financial plans.
Starter: What do you think is in a business plan?
What is generally on a business plan?
1)Personal Details
2)Business Details
3)BusinessAims/Objectives
4)Prices
5)Information about the market
6)Potential Customers
7)Competitor information
8)Location
9)Advertising/Promotion
10)Financial Information
Take a look at the example.
1)Personal Details
2)Business Details
3)BusinessAims/Objectives
4)Prices
5)Information about the market
6)Potential Customers
7)Competitor information
8)Location
9)Advertising/Promotion
10)Financial Information
Take a look at the example.
Why is a business plan so important?
•To show potential investors, e.g. venture capitalists (Dragons)
•To persuade potential lenders, e.g. the bank manager
•To focus on the aims/objectives
•To appear organised and professional
- Identify any problems
- Need to be regularly reviewed and updated
•To show potential investors, e.g. venture capitalists (Dragons)
•To persuade potential lenders, e.g. the bank manager
•To focus on the aims/objectives
•To appear organised and professional
- Identify any problems
- Need to be regularly reviewed and updated
Activity: Energy drink activity
Lesson 13:
Uncertainty And Risk For Start-Up Businesses
Lesson Objectives:
- To understand the difficulties associated with business planning (D-E)
- To analyse how businesses can help reduce risk (B-C)
- To apply the above to a given business scenario (B-C)
- To understand the difficulties associated with business planning (D-E)
- To analyse how businesses can help reduce risk (B-C)
- To apply the above to a given business scenario (B-C)
Starter: Use the mini whiteboards to write down your ideas for the risks that a new business might face when starting up.
Difficulties Associated With Business Planning
Uncertainty:
- Don't know what will happen to your market
- New competitors
- Demand falls
Lack of Experience:
- Not having the necessary skills - inaccurate research
- Bigger businesses can use experts - increased costs
A business plan might help reduce risk, but not necessarily remove it altogether. It can help entrepreneurs look ahead, but there is no guarantee it will work.
Uncertainty:
- Don't know what will happen to your market
- New competitors
- Demand falls
Lack of Experience:
- Not having the necessary skills - inaccurate research
- Bigger businesses can use experts - increased costs
A business plan might help reduce risk, but not necessarily remove it altogether. It can help entrepreneurs look ahead, but there is no guarantee it will work.
Activity: Complete the labeling of the comic strip.
How Business Plans Help Reduce Risk
To try to reduce the risk of business plans going wrong, entrepreneurs ca:
To try to reduce the risk of business plans going wrong, entrepreneurs ca:
- research the market thoroughly
- talk to experts and consultants (if affordable)
- plan for a variety of possible outcomes
- regularly review and update the plan so that it remains relevant and any problems are spotted quickly
Examiner's tip: Producing a business plan can help a business to organise its activities but it does not guarantee success. To judge how useful a particular plan is, you need to look at who produced it, how it was produced and what research they did. If things have gone wrong, was it the result of bad luck, or should the managers have predicted that these problems might have occurred?
Plenary: Complete quick questions.
business_plan_qs.pub | |
File Size: | 789 kb |
File Type: | pub |