Business plan definition aqaa

You can also follow tutor2uBusiness on Twitter, subscribe to our YouTube channelor join our popular Facebook Groups. The business plan has many functions, from securing external funding to measuring success within the business. What are the company's historical and projected financial statements?

E-commerce Business transactions carried out electronically on the internet. By contrast, in a highly diversified business, top level management will not have knowledge and expertise that matches subordinate management.

importance of business plan

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What is business plan in entrepreneurship

In addition, it is also normal to produce a "capital budget" detailing the capital investment required for the period, a "cash flow budget", a "stock budget" and a "master budget", which includes the budgeted profit and loss account and balance sheet. Who are the competitors and how will the company maintain a competitive advantage? Asset Something the business owns; it has a value. What is the size of the market for this solution? From the diagram, the main components of a marketing plan can be summarised as: Main Stages of Marketing Planning Subscribe to email updates from tutor2u Business Join s of fellow Business teachers and students all getting the tutor2u Business team's latest resources and support delivered fresh in their inbox every morning. Margin of safety The difference between the actual level of output and the break even output Market Any place e. The main purposes of a budget are: 1 to monitor business unit and managerial performance the latter possibly linking into bonus arrangements 2 to forecast the out-turn of the period's trading through the use of flexed budgets and based on variance analyses 3 to assist with cost control. Motivation The reasons people are interested in and committed to their job.

Legal and liability issues[ edit ] Disclosure requirements[ edit ] An externally targeted business plan should list all legal concerns and financial liabilities that might negatively affect investors.

For example, are sales difficult to estimate?

What are the components of a business plan

Net cash flow The difference between cash inflows and cash outflows. You can also follow tutor2uBusiness on Twitter, subscribe to our YouTube channel , or join our popular Facebook Groups. External growth The growth of a business by joining with another by merger or takeover. The bank wants openness and no surprises. This review will help highlight which areas of the business have proved difficult to forecast historically. What is the size of the market for this solution? Flat organisational structure An organisational structure with a wide span of control and few levels of hierarchy a short chain of command. Who will run the company and what makes them qualified to do so? The business interacts with these groups.

August Learn how and when to remove this template message Non-disclosure agreements NDAs with third parties, non-compete agreementsconflicts of interest, privacy concerns, and the protection of one's trade secrets may severely limit the audience to which one might show the business plan. Research is costly and can seem like a poor use of time.

what is the purpose of a business plan

Students should be familiar with and gain an understanding of these terms.

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Purpose of Business Planning (GCSE/AQA) Lesson 6 by dashley