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What is a plan?
A way of deciding in advance what you want to do and how you will do it.
Give ONE reason why a business prepares a business plan.
To increase efficiency / identify problems early / secure finance.
Why is good planning important for business success?
It makes the business more efficient and more likely to succeed.
Why must a business show evidence of planning to banks or grant providers?
To secure finance or government grants.
Give ONE aim a business may plan for.
Become a market leader / sell globally / tackle a social cause / protect the environment.
What does SMART stand for?
Specific, Measurable, Achievable, Realistic, Time-bound.
What is a mission statement?
A short written statement of a business’s main goal.
Give ONE example of what a mission statement explains.
What the business aims to do or why it exists.
What is a business plan?
A written plan drawn up by an organisation, required when seeking finance.
When is a business plan especially needed?
When applying for a loan or finance from a bank.
What is cash flow?
All the money coming in and going out of a business.
What is a cash flow forecast?
A prediction of receipts and payments over a period of time.
What are receipts in a cash flow forecast?
All income the business expects to receive.
Give ONE example of a receipt.
Cash sales / money from debtors / grants / tax refunds
What are payments in a cash flow forecast?
All costs the business expects to pay out.
Give ONE example of a payment.
Purchases / wages / expenses / money owed to creditors.
