 | All business owners should market, rather than run
their businesses. |
| When starting a business the owner needs to choose the
best structure: sole trader, partnership, private company or public company.
|
| The purpose of the plan is to present relevant
information to interested third parties. |
| Situational analysis- a detailed description of the
internal and external environments of the business. |
| The three main areas covered by a situational analysis
are:
 | General conditions- economy, social factors,
technology, culture, political factors, legal factors, international
environment |
| Competitors- direct and indirect, strengths,
weaknesses, market share, future plans, customer base, marketing strategies
|
| Individual business owner- strengths and weaknesses
|
|
| The objectives of the business should be clearly
stated. Establishing a business's objectives is absolutely essential for
business success. |
| A strategy is a plan defining the approach that a
business will take to achieve specific objectives. |
| The key to developing any finance plan is the ability
to:
| estimate cash flow projections |
| prepare profit & loss projections |
| prepare budget projections |
| prepare a break-even analysis |
|
| A business owner should include the following in the
business plan:
| the business history |
| profit & loss statements showing the profitability of
the business |
| a balance sheet listing all the assets and
liabilities expressed at their current values. |
| Other relevant statements, including turnover, gross
and net profit, and a projected cash slow statement. |
|
| Financial requirements: Outlines types of finance: debt
or equity, short-term loans, medium-term loans, long-term loans. |
| Forecasts- cash flow projections, profit & loss
projections, balance sheet projection, break-even analysis , records,
financial controls. |
