Starter: Recap… 1. Explain what is meant by the term ‘market mapping’. 2. Explain the purpose of market mapping. 3. Complete a market map for the UK magazine market.

Thursday 9 th October 08 Today you will know what a business plan is. You will understand their importance and the content required. You will be able to apply this to the entrepreneur business plan guide leaflet.

What is a Business Plan? A Business Plan is a document setting out the business idea and showing how it is to be financed, marketed and put into practice. It is likely to be a crucial part of an attempt to raise finance from outside sources such as a bank.

Business Plans: Their Purpose A business plan seems essential for an entrepreneur to ensure start up success, however many see them a just a means for securing finance from the back. Many entrepreneurs do not see a business plan for them, they see it as something for others. i.e a bank manager. Did you know? Government figures show that on average new business entrepreneurs are white, males, with a university degree and in their mid 30’s. As a consequence many have built up the capital required to start up and so have no need for external finance, and therefore they do not need a full business plan. As a result the same figures suggest that most businesses start-up without a formal business plan. For the young entrepreneur it would be virtually impossible, the need to find the capital to start-up would make it crucial to have a plan persuasive enough to obtain funding.

The Contents of a good plan. A good plan should be persuasive to an outside investor and useful to an entrepreneur. It should explain what makes the business special and help the entrepreneur to keep sight of what he or she is trying to achieve. The heart of the business plan should be based around competitive advantage. This means identifying the features of your own product / service that will make it succeed against the competition. This might be based on a unique idea, a better product / service or the protection provided by a patent or copyright. Every business plan should contain the following: Executive Summary Details of the product / service The Market Marketing Plan Organisational Plan Operating Plan Financial Plan Conclusion

Tasks… Task 1: Reading… Read through pages 24 & 25 of the textbook. (Sections 5.1, 5.2 & 5.3) Task 2: Video Watch the video on HOW to write a business plan. (make notes) How to write a Business Plan

Task 3: Business Plan Guide You have been asked by Natwest Bank to produce a help /guidance leaflet for new entrepreneurs. Your leaflet must cover the following: What a business plan is The importance of detailed business plan The contents of a good business plan Here you need to explain what information should be in each section. Describe the benefits and problems with writing a business plan. Suggestions / additional help on HOW to write a business plan.

Tasks… Task 4: Reading… Read through pages 25 & 26 of the textbook. (Sections 5.4 & 5.5) Task 5: Thai Restaurant Read the case study and complete questions (pages 27 & 28) Task 6: The Chocolate Therapy Plan Read the case study and complete questions (pages 28)