1. Topic 1.3 Chapter 17
The
Business
Plan
Pages 80-83

2. Aim for today
Appreciate the role and importance of a business plan in minimising the risk involved in starting up a business

3. The Business Plan
A business plan is a detailed development plan for a business. It includes information about the company’s:
Location
Ownership
Products/services
Resources
Production methods
Marketing
Financial details
It is usually completed on a 2-5 year basis

4. Advantages of writing a business plan
A business plan helps you to:
Clarify your vision and decide whether or not to go ahead with an idea.
Determine if your product and/or service has a sufficient market to support it and whether or not it will be profitable.
Estimate your start-up costs and how much you'll need to invest or finance.
Convince investors and lenders to fund your business.

5. Advantages of writing a business plan
Define your target market
Establish or revaluate your competitive position within the marketplace.
Define corporate objectives and programs to achieve those objectives.
Help your business make money from the start by developing effective operational strategies.
Understand the risks involved and anticipating potential problems so that you can solve them.
Set a value on a business for sale or for legal purposes.

6. The business plan Let’s watch some clips
What happened when Santa didn’t write a business plan?

7. Group Task In your groups decide on a company that you will start up.
Using the example, draw up a business plan and include a cash flow forecast.
Next week you will deliver a presentation to a very important panel (the bankers, who will decide whether or not to give you a loan).
You must be able to justify your business plan details, decisions and forecasts. You should dress appropriately.

8. The Business Plan The plan must include:
Section 1: The business idea and legal structure
Section 2: Resources, production and quality issues
Section 3: Marketing
Section 4: Financial resources

9. Dear Students,
The Investors panel has agreed to meet with your company on Friday…Please ensure you have your business plan.
Yours faithfully,
Mr Nicholls Investments

10. Investment panel meeting at bank
Guidance notes
Your business plan should be explicit
Think about the type of ownership
Be able to justify the contents and financial forecasts
Consider your PR strategy
Be confident, speak clearly and don’t waffle!
Be realistic!

11. Quick Quiz State 3 elements of a business plan?
Name 2 advantages of having a business plan?
State 2 reasons why a business plan may be inaccurate?
Who might be interested in seeing a business plan?
How does a business plan minimise risk?