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

2. Business Plan 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
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3. Business Plan 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
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4. Reasons for Developing a Business Plan
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
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5. Reasons for Developing a Business Plan
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
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6. Activity – 15 minutes
Working in groups list out the sections of a business plan.
Under each section identify what you would expect to see in there.
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7. Components of a Business Plan
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
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8. Components of a Business Plan
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
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9. Components of a Business Plan
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
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10. Components of a Business Plan
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.
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11. Components of a Business Plan
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.
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12. Sample Questions – 10 minutes
Working individually complete the following past paper questions: 2016 Question 2d 2015 Question 3a,b,c
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13. Learning Check Do you know:
The reasons for developing a business plan?
What should be included in a business plan?
How to evaluate a business plan?
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14. Useful Websites www.investni.com www.fsb.org.uk
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