What is a business plan?

• A business plan is a document or report detailing how a business will develop a venture over a specific period of time.

• This is usually prepared before the start of a new business but sometimes for the expansion of an existing business.

Why prepare a business plan?

• To give the owner a clear idea of direction and operation

• To obtain loan and show the banker an ability to pay back the loan

• To show investors why they should invest in the business

content

• Description of the business• Product information• Analysis of potential market• Financial resources• Human resources• Production forecast• Promotion resources • Assets requirements• SWOT analysis

Practice Questions

• May 01 H1 Q2a• May 04 S2 Q4b• N07 H1 Q4b• N09 H1 Q3a