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BUSINESS PLAN2.9

Develop a simple business plan for a new or existing product or service.

Pick out four large words from this word cloud and explain them in relation to this unit.

1. ____________________________________________________________________________________________

2. ____________________________________________________________________________________________

3. ____________________________________________________________________________________________

4. ____________________________________________________________________________________________

Discuss what these words tell you about this unit. Are there any small words that you are surprised to see? Why?

Textbook pp. 294-302

Links: 2.7, 2.8

BEFORE WE BEGINDo this exercise individually or in pairs. Tick ü whether you agree or disagree with the statements. Revisit it after the unit to see if you have changed your mind about any of them.

Before After

I agree I disagree Statement I agree I disagree

A business plan is like a road map

USP stands for unique selling point

A mission statement sets out a short term goal for an organisation

Strengths are good internal things about the business

Opportunities are good external business factors that the business can use to its advantage

Key Words

Business – A business needs to develop a plan for new or existing products.

Plan – Should help you decide whether you should or shouldn’t pursue your idea.

Market – Contained in a business plan. Market research and marketing mix.

Finance – Contained in business plan. Sources of finance and final accounts.

QUESTIONS 1. What is a business plan?

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2. List four reasons for preparing a business plan.

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3. Choose either a new or an existing product and create a business plan. Use this template to document key points under the various headings.

1. Title: Business Plan

2. Name of business

Read the following statements. Tick ü whether you believe them to be true or false.

Statement True FalseOnce a business plan has been made, it should be carefully adhered to and not changed

In a SWOT analysis, threats represent internal problems in your business

An example of a ‘strength’ can be a good location

A business plan helps you compare outcomes with initial aims

A business plan is purely for your own reference and would not be of interest to any outside people/institutions

A business plan is just for new businesses

Details of market research are relevant to include in a business plan

A business plan can help you figure out what extra resources your business will need

Sources of finance mentioned in a business plan can include loans

A business plan should be realistic

True or False?

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BE BUSINESS WORKBOOK: ENTERPRISE2.9

It is a plan that should help you decide whether you should or shouldn’t pursue your business idea.

i. Sets out the aims/objectives and target market.

ii. Shows what resources are required to achieve goals.

iii. Provides a SWOT analysis.

iv. Is a necessary document when looking for a loan, a grant or new investors.

ü

ü

ü

ü

ü

üü

ü

ü

ü

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BUSINESS PLAN 2.9

3. Table of contents

4. Executive summary

5. Details of product/service

6. Personnel

7. Details of production (only in manufacturing)

8. Marketing

9. Finance

10. Appendices

11. Signed Dated

4. Only a business, a for-profit organisation, plans.

Write down three points in favour of (for) this statement and three points against.

For 1.

2.

3.

Against 1.

2.

3.

5. Compose a tweet from the ‘Be Business’ account in response to Damien.

Damien @29E@bebusiness What is a business plan?@29E

6:53 PM - 18 Feb 17

Follow

6. Choose an organisation (either for profit or not-for-profit) and create a SWOT analysis using the following template:

Name of organisation:SWOT

Strengths Weaknesses

Opportunities Threats

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BE BUSINESS WORKBOOK: ENTERPRISE2.9

Hi Damien, A business plan is a written document which describes in detail how a business is going to achieve it’s goals. It is like a road map which states where the business is now, where it wants to go and how it plans to get there.

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BUSINESS PLAN 2.9

Explain these key terms.

Business plan

Mission statement

Sole trader

Sources of finance

Income statement

Statement of financial position

Cash flow

Unique selling point (USP)

Capital

Production process

Patent

Flexible

Are you ready to go on to the next unit?

2.9 Read the Learning Outcome Getting ready Revisited Got it!

Reflect on your learning:

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Looking Back

Moving On

Now revisit the ‘Before We Begin’ exercise.

A plan that should help you decide whether you should or shouldn’t pursue your business idea.

Outline what the business does and it’s values.

An individual who runs the business.

Capital, loans, overdrafts, hire-purchase, leasing.

Shows the net profit for the year.

Shows the assets and liabilities at a particular date.

Cash in and cash out.

Money used to start a business.

Once-off, batch or mass production.

Something that makes your product/service different from your competitors.

The exclusive right to make, use or sell a product or process.

Allowing for changes.

1. What skills have you developed while studying this topic?

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2. What new technology have you used in this topic (useful websites/YouTube clips/tweets)?

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3. What research have you done? Did you use a trustworthy source? Has it dated?

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4. What new information have you discovered?

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5. How has the learning influenced your thoughts, opinions, attitudes and behaviour?

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6. How might the learning influence your future?

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7. What values have you encountered in this unit?

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8. What decisions have you made in this unit?

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Key Check

BE BUSINESS WORKBOOK: ENTERPRISE2.9