• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Explain the guidance available for pre-business and how a business plan is useful.

Extracts from this document...

Introduction

Transfer-Encoding: chunked ´╗┐There are many components that need to be included in a business plan. These include, your details such as name and address; the businesses name address, legal ownership and principal activity. It should also include the businesses objectives; their short term objectives, which tend to be to survive and get a secure customer base. Medium term which would be to grow as a business and perhaps open other branches. And lastly long term which would be to run the business ethically. Additionally, it should state the products and services offered. For instance, what are they selling, their unique selling point, who is going to supply them and what their stock levels should be. ...read more.

Middle

And they need to identify if the market is static, declining, growing or seasonal as this can have a major impact on their performance. They also need to plan their financial state. They will need to plan their start up. This includes their cash flow forecast, breakeven point and actual amount of other costs. And they will need to plan their growth, this will be their gross profit margin, other existing financial commitments like loans and predicted capital expenditure. They will also need to plan key personnel. They will need the names of each person, the needed qualifications and experience and their roles to the business. They should also include previous employment like the name of the previous business, how long they worked there and lasting what their role was. ...read more.

Conclusion

Also variable costs such as raw materials are vital; a business need to plan these costs so that they can get the best price. And they will need to think about having a backup plan if a supplier cannot supply them. Lastly, they will use these costs to determine the selling price of their products. A financial plan will also have pricing. A business will need to do research to see how much their competitors are selling similar products for. This is because they don?t want to overprice their products and they don?t want to set it to low as its going to limit the profits made. It will also have mark up. This is a tool used by businesses to work out their pricing. There is fixed percentage profit mark-up; this enables a business to determine their selling price, this is very important for businesses to you. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. Tesco Research

    as compared to the operational whose decisions are directed towards the company's efforts of meeting medium-term goals. The manager before making any decisions will have to have the intelligence of that particular problem that exists be aware that a decision is necessary then design possible solutions and implications of the solution.

  2. tesco aims and objectives

    Tesco has very large delivery Lorries they have everyday. With the help of the local council Tesco decide to have delivery vans early in the morning and late at night this prevented any nuisance to the public and complaints of pressure groups that may have made problems for Tesco.

  1. English for business

    I chair meetings and take the floor. I order a cake as I like to eat sweets. I go home late in the evening, very tired. I have supper and I eat some fruit. I listen to the news on TV. I go to bed and I have nice dreams.

  2. Business studies - Business Plan

    Planning Section Introduction I am going to take a self assessment questionnaire. The reason for this is so I can see the strong points and weak points I will be brining into my business. I will then look at each question and the answer I have given and see how it could affect me in certain situation.

  1. Applied Business Unit 1

    As the introduction of loyalty and reward cards from Asda marketing has been easier as the cards record the buying habits of customers and the marketing team observe their most popular, effective and demanding products and their non demanding products.

  2. Business Studies

    that the buyer is not always the user * Factors influencing customer choice - psychological, sociocultural, economic and government Factors influencing customer choice > Forces outside the business environment will play a role in the success of the marketing plan > These forces are part of the buyers environment Psychological

  1. Business Plan. After putting a lot of thought into what kind of business we ...

    I am interested in this idea as there are not any sandwich vans around in the area and I think it would be a good business to create. As healthier advertisements are becoming more popular, people are becoming aware of the dangers of being overweight.

  2. business aims and objectives

    If their company was know and established these aims and objectives would suit them. As they are a new company to the business world they have debts. I firmly believe that they should first of all look into how they should repay their debts.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work