BUSINESS PLANSAS Business Studies Unit 1

Aims and ObjectivesAim: • To understand the benefits and problems of creating

business plansObjectives:• Describe the elements of business plans.• Explain sources of help for business plan creation.• Analyse the benefits and problems of business plans.• Evaluate the usefulness of a business plan.

Starter

• Define a business plan

• Explain 3 uses of a business plan

• Describe three elements of a business plan.

Other Elements of Business Plan• Brainstorm ideas of what else must be included in a

business plan.

• Remember we have already had…….• Executive summary• Business Description• Product Description

Elements: Market Analysis• Analysis of the market and competition.• Customers needs, and how the product or service meets

those needs.

• Market: size, data, growth• Customer: who they are, where they are.• Competition: who they are, their strengths and

weaknesses.• Future: how might the market change, how can the

business respond.

Elements: Strategy and Implementation

• Analysis of the key decisions and strategies.• Who, when, and at what cost are they carried out.Marketing and Sales Strategies• Pricing, promotion & sales strategiesProduction Strategies• Location• Production eg. Machinery• Systems eg. Stock control, financial management

Elements: Management Team• Description of key members of business and their

experience.

• Data on employees.

• Salaries etc

Elements: Financial Plan• Profit and Loss statement

• Cash flow forecast

• Balance sheet

• Break even analysis

• Financial ratios

Sources of Help and Guidance• Business Link: provides advice on contents of plans.• Accountants and Bank Managers: advice, business

meetings.• Government Agencies: department for business and

enterprise offers help, guidance and grants.• Princes’ Trust: grants and advice for young business

people.

Case Study

Benefits and Problems• Brainstorm the potential benefits and problems to a

business of producing a business plan.

A

B

C

D

E A

B

C

D

E

Benefits

Problems

The Old Railway Station Hotel Case Study

• Discuss the benefits and drawbacks of the business approaching a business angel or a bank for the 175,000.

• What information would Barry and James need in their business plan?

• Evaluate to what extent a business plan would guarantee the success of the Old Railway Station.