The Business Plan. Student Version

This worksheet it uses much of the information that is available on the Internet to help small businesses to plan for the future. It will be of most value to students who are studying A-level Business Studies or AVCE Business.

The main aims of the worksheet are:

1. To understand the need for a business plan
2. To look at the different types of business status
3. To be able to complete cash flow forecasts and financial projections
4. To be able to outline overall business objectives

Step 1 – Planning ahead

No matter how big or small a business organisation some sort of plan is vital. Planning ahead is essential if you are to establish a successful enterprise. You need to set business objectives such as profits and growth and then gather information from market research. You need to analyse your information and set an action plan. Financial planning is a core component of a new business.

What are the main areas a business plan should cover?

1. ___________________________________________________

2. ___________________________________________________

3. ___________________________________________________

4. ___________________________________________________

5. ___________________________________________________

6. ___________________________________________________

7. ___________________________________________________

Step 2 – What sort of business are you?

A business plan should include details of the legal status of the business. Write a brief account of each type of business given below:

1) Sole Trader

2) Partnership

3) Private Limited Company

4) Franchise

You could follow this up in more detail by having a look at the factsheets on the Companies House web site.

Step 3 – So what are you forecasting?

Making a business plan helps to explore the potential of a business. The plan will specify all aspect of the firms’ scope and intentions including detailed financial projections. It will show whether ideas will work and if any adjustments need to be made. Financial information will include cash flow forecasts and projected profit and loss accounts for at least the first year.

Find out the meaning of each of the terms below:

1) Cash Flow

2) Profit and Loss Account

Step 4 – “Show me the money”

Particular attention will need to be paid to the sources of finance. Summarise each of them below:

1. ___________________________________________________

2. ___________________________________________________

3. ___________________________________________________

4. ___________________________________________________

5. ___________________________________________________

Step 5 – Do you have a “cunning plan”?