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Tutorial Chapter 4

The document discusses key aspects of business planning including: 1) It explains that a business plan serves as a guide for a proposed business project and outlines its importance to entrepreneurs, shareholders, and investors. 2) It lists the three main parties that need a business plan as entrepreneurs, shareholders, and investors. 3) It discusses the main sections of a business plan including the business concept, management plan, production plan, marketing plan, and financial plan. 4) It provides four guidelines for preparing a business plan: keep it short and precise; make it specific; reveal people involved and their roles; and avoid jargon. 5) It lists four reasons for business plan failure: lack of

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Connie Koid
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18 views

Tutorial Chapter 4

The document discusses key aspects of business planning including: 1) It explains that a business plan serves as a guide for a proposed business project and outlines its importance to entrepreneurs, shareholders, and investors. 2) It lists the three main parties that need a business plan as entrepreneurs, shareholders, and investors. 3) It discusses the main sections of a business plan including the business concept, management plan, production plan, marketing plan, and financial plan. 4) It provides four guidelines for preparing a business plan: keep it short and precise; make it specific; reveal people involved and their roles; and avoid jargon. 5) It lists four reasons for business plan failure: lack of

Uploaded by

Connie Koid
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 4: Tutorial

1.Explain the meaning of business plan.

Business planning is one of the management tools used to achieve business objectives. The
accuracy of a business plan will reflect management's ability, experience and history in running
the business. The business plan is also known as venture plan, entrepreneur plan, working paper,
project paper or prospectus. The plan serves as a guide and blueprint for a proposed business
project that one intends to undertake.

2.List any 3 parties who need a business plan.

i. Entrepreneur
ii. Shareholders
iii. Investors

3.Explain 3 importance of a business plan to an entrepreneur.

The three importance of a business plan to an entrepreneur are creates the opportunity for
success business as we know a success business only can gain profit. Next, sets the business
mission. It is easy to let people know that what mission and objective that you need to archive.
The last importance of a business plan to entrepreneur are determines the company’s main
competitors it is to understanding the strength and weakness of the company itself and the
competitors.

4.Discuss the main sections of a business plan.

Business planning is one of the management tools used to achieve business objectives. The first
main sections of a business plan are business concept. This section focuses on the industry, the
entrepreneur’s goods or services and how he plans to make his business a success. The second
sections of a business plan are management plan or also known as administration. This section
describes the entrepreneur’s business structure and help to manage the overall business
objectives and goals. It also deals with the remuneration of staff and their job responsibilities in
the organization. Besides that, the list of equipment and administrative budget are also
incorporate in this section. Third sections of a business plan are production plan and also known
as operational. It focuses on the business operation which involves the processing of input to
produce the output. The entrepreneur has to ensure that the business can produce a product or
service efficiently at the lowest cost possible. The operation process of the business will be
presented in the form of flowchart. In this stage, the manager has to prepare the operational
schedule in order to enhance the smooth flow of operation. Besides, a layout plan and budget
need to be prepared together with the expenses incurred in the business. Next sections of a
business plan are marketing plan in this section, the entrepreneurs need to determine his target
market and customers. He would have to describe clearly the goods or services which will be
offered to the customers in order to estimate the market size and market share so that it can be
compared with the competitors in the same industry. The entrepreneur also needs to describe and
analyze potential customers such as their location and the reasons for purchasing his products. In
addition, the marketing strategies need to be developed and future sales and profit need to be
estimated. Last sections of a business plan are financial plan. This section contains the
entrepreneur’s income and cash flow statement, balance sheet and other financial ratios, such as
break-even analyses. This part may require help from accountant and a good spreadsheet
software program. This is important to prepare the trading profit and loss account, and also the
balance sheet account as the company has to ensure that it has enough capital to cover its
expenses and have a stable cash flow.

5.Describe 4 guidelines in preparing a business plan.

4 guidelines in preparing a business plan are keep the business plan short and precise which
mean try not to explain too much of the particular things. The second guidelines in preparing a
business plan are make it specific to let the people know what you need to do. The third
guidelines will be revealing the people involved and their roles means that to crest an
organization chart and clarify the remuneration of the staff and their responsibility. The last
guidelines will be avoiding the use of jargon language just use the languages that people can
easily understand it.
6.Explain 4 reasons for failure in a business plan.

4 reasons for failure in a business plan are lack of evaluation means that when entrepreneur
preparing the business plan, they need to evaluation it and if found out some mistake they can
straight away discuss and correct it to do it better. Next reason for failure in a business plan are
lack of acceptance by the management means that the plan rejected by the management when it
prepares in worst conditioning. The following reason for failure in a business plan no market
niches means that an entrepreneur needs to know the market strategy and does the product can be
push out to the customer. The last reason for failure in a business plan are make sure the product
is useful, practical and also measurable to customers.

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