Business Plans Objectives To identify the reasons why

Business Plans

Objectives • To identify the reasons why a business plan is created • To be able to identify what goes in to a business plan

What is a business plan? Finance to start Product / Service Marketed Market Research (Demand)

When is it created?

Why is the plan important? • Planning will help the business succeed • Minimise risk • Can help stop failure • Can help achieve success • Can judge whether idea should go ahead

Aims & Objectives Idea Finance (Cost/Profit Cashflow/Sources) Target Market (Market Research) Contents Business Plan Location Marketing

Contents Idea This is obvious but there needs to be a starting point. NEEDS TO BE PRACTICAL

Market Research Contents • To back up idea need research to show customers interested Show results, to show Customers will use If not interested, New idea needed

Marketing Contents • Decide how product / service marketed Location and how reach customer, reasons given Detail of product – ranges, specialise How business advertised, sales promotions Prices charged – pricing strategies

Finance Contents • Cost of setting up the business included • Where finance will come from Savings Bank

How to use the plan • Persuade others it has been carefully thought out • Persuade a bank or venture capitalist to invest • Bank will judge if take risk and lend money • Evaluate an idea

Task • Work in pairs • Come up with an original idea • Write a business plan to persuade me to invest in your idea