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

Authors Avatar by ellouise1997hotmailcom (student)

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. And should include sales and marketing. For example, they will need to calculate the levels of sales anticipated and if they seem realistic. Also where and the business intend to promote their products and the financial implications of this. Furthermore, the business plan should include information about the customers. For instance, who and where they are, how, many and why they would choose the businesses products. Lastly, it should state the competition. For example, who and where their major competitors are, their strengths and weaknesses so they can exploit them to perform better. And they need to identify if the market is static, declining, growing or seasonal as this can have a major impact on their performance.
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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 ...

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