Topic 3 of 5 · Form 2
The business plan
A business plan is a written document describing a business, its goals and how it will achieve them.
Notes for this topic 1 file, in order
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A business plan is a written document describing a business, its goals and how it will achieve them.
Purposes
Guides the owner, helps raise finance from banks or investors, sets targets to measure progress, and identifies risks early.
Contents
- Executive summary: a short overview.
- Business description: name, location, legal form, products and services.
- Market analysis: customers, competitors, market size.
- Marketing plan: the 4 Ps – product, price, place, promotion.
- Operations plan: premises, equipment, suppliers, production process.
- Management and staff.
- Financial plan: start-up costs, sources of finance, cash-flow forecast, projected profit.
- Risks and how to reduce them.
Sources of finance
Personal savings, family and friends, savings clubs (mukando), bank loans, microfinance institutions, government youth funds, grants and crowdfunding.
Exam tip: The financial section must be realistic – show how you worked out the figures.
Check yourself
- Give two reasons for writing a business plan.
- What are the 4 Ps of marketing?
- Name three sources of finance for a small business.
Show answers
- Any two: guide the business, raise finance, set targets, identify risks.
- Product, price, place and promotion.
- Any three: savings, family, mukando/savings clubs, bank loans, microfinance, youth funds.
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