1. Unit 1 Topic 1.3.5

2.  Must learn: the purpose of a business plan  Should learn: the process of setting up a business step by step  Could learn: the importance of minimising risk by doing a business plan

3. What does a business plan consist of?

4.  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

5. 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.

6.  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.

7. Let’s watch some clips  http://www.youtube.com/watch?v=hbysbP 7Q0aM What happened when Santa didn’t write a business plan?  http://www.youtube.com/watch?v=bX1hDJ BwoPc http://www.youtube.com/watch?v=bX1hDJ BwoPc

8.  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.

9. 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

10. 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.  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?