Unit 3 Business Plan. Complete unit..pptx

Creating and understanding business plans

1. GCSE Business Studies Unit 3 Planning a Business Business Plan

2. Learning outcomes to be covered: This unit brings together the learning from units 1 and 2 which is required to produce a business plan. Explain the reasons for developing a business plan for example to: - Show to the bank, shareholders and other possible investors - Ensure proper planning - Monitor actual performance against the plan - Keep a check on spending - And ensure that aims are being met Business Plan Images © thinkstockphotos.co.uk

3. Learning outcomes to be covered: Demonstrate knowledge of the following components of a business plan: Introduction The business and its objectives (unit 1) A resource plan (unit 1) A marketing plan (unit 1) A production plan (unit 1) A financial plan (unit 2) Evaluate components of a business plan Business Plan Images © thinkstockphotos.co.uk

4. To grow an existing business or develop a new one To gain external funding e.g. from the bank or other potential investors showing them why they should invest To show shareholders (staff, customers, managers or other people) interested in the business To ensure proper planning of the finance, staffing, marketing and resources Reasons for Developing a Business Plan Images © thinkstockphotos.co.uk

5. To set and communicate goals and objectives so employees and others know what their goals are To monitor actual performance against forecast performance (this could be sales or production of products and services) To monitor spending and income i.e. financial section of plan To ensure aims and objectives are being met Reasons for Developing a Business Plan Images © thinkstockphotos.co.uk

6. Working in groups list out the sections of a business plan. Under each section identify what you would expect to see in there. Activity – 15 minutes Images © thinkstockphotos.co.uk

7. Introduction to proposed business Business name and address Business idea description – what the business will sell or the service it will provide Information about the benefits of the product or service – the unique selling point The Business and its Objectives Strengths of the business and any awards achieved – if the business is already trading they may have won awards for their product or service How the business has been funded – is the business looking for a loan, have they obtained grants, or reinvested profits Components of a Business Plan Images © thinkstockphotos.co.uk

8. The Business and its Objectives (continued…) Legal status of the business – a sole trader, partnership, limited company Mission statement and objectives – sets out what the business aims to do Personal details of the owner – company director and others who may have invested money A Resources plan People involved and their skills Premises and location Equipment needed or already using Raw materials required if manufacturing e.g. milk if making cheese Working capital required e.g. loan from the bank or investors links to the financial plan Components of a Business Plan Images © thinkstockphotos.co.uk

9. A Marketing Plan Market research – summary of the research (primary and secondary) Target market – customers and their profile e.g. young professionals Details of competitors – locally or within the area, what they offer Projected demand – how many products will be sold per week/month etc. Proposed marketing mix - Product, Pricing, Promotion, Place e.g. what the product is, how the product or service will be priced, the type of promotion (website, leaflets) and where it will be sold or distributed Components of a Business Plan Images © thinkstockphotos.co.uk

10. A Production Plan Production process (only for manufacturing) How premises and machinery will be used Health and safety requirements – need to supply protective hats, footwear etc. Components of a Business Plan Images © thinkstockphotos.co.uk

11. A Financial Plan break-even analysis – how many products need to be sold cash flow forecast – showing when and how much money comes in and out capital invested - details of loans, mortgages or shareholder investment projected and/or recent income statement and statement of financial position - trading profit and loss account, balance sheet (assets and liabilities) Appendices market research materials, including sample questionnaire CVs for owners/staff photographs/drawings copies of legal documents e.g. insurance documents, health and safety policy etc. Components of a Business Plan Images © thinkstockphotos.co.uk

12. Working individually complete the following past paper questions: 2016 Question 2d 2015 Question 3a,b,c Sample Questions – 10 minutes Images © thinkstockphotos.co.uk

13. Do you know: The reasons for developing a business plan? What should be included in a business plan? How to evaluate a business plan? Learning Check Images © thinkstockphotos.co.uk

14. www.investni.com www.fsb.org.uk www.nidirect.gov.uk/articles/starting-your-own- business www. gov . uk /write-business-plan https://ulsterbankni.mymoneysense.com/home www.nibusinessinfo.co.uk/content/prepare-business-plan www.princes-trust.org.uk/help-for-young-people/tools-resources/business-tools/business-plans www.startuploans.co.uk/delivery-partners/enterprise-northern-ireland/ Useful Websites Images © thinkstockphotos.co.uk