Creating and understanding business plans

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

2. 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
Business Plan
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3. 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
Business Plan
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4. • 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
Reasons for Developing a
Business Plan
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5. • 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
Reasons for Developing a
Business Plan
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6. • Working in groups list out the sections of a business
plan.
• Under each section identify what you would expect
to see in there.
Activity – 15 minutes
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7. • 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
Components of a Business Plan
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8. • 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
Components of a Business Plan
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9. • 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
Components of a Business Plan
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10. • 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.
Components of a Business Plan
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11. • 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.
Components of a Business Plan
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12. Working individually complete the following
past paper questions:
2016 Question 2d
2015 Question 3a,b,c
Sample Questions – 10 minutes
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13. Do you know:
• The reasons for developing a business plan?
• What should be included in a business plan?
• How to evaluate a business plan?
Learning Check
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14. • www.investni.com
• www.fsb.org.uk
• www.nidirect.gov.uk/articles/starting-your-own-business
• www.gov.uk/write-business-plan
• https://ulsterbankni.mymoneysense.com/home
• www.nibusinessinfo.co.uk/content/prepare-business-plan
• www.princes-trust.org.uk/help-for-young-people/tools-
resources/business-tools/business-plans
• www.startuploans.co.uk/delivery-partners/enterprise-northern-ireland/
Useful Websites
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