Zusammenfassung der Ressource
1.6 Business planning
- What is a business plan?
- A document setting out what a
business does and what it wants
to achive
- Business plans are needed to know the risks before it
starts, provide clear targets, get data, make better
decisions. To raise finance, investors like banks will want
estimates of costs, sales, profits and how it will attract
customers and to easily set targets and aims
- Revenue
- The income that a company
receives from selling its goods or
services
- Fixed costs
- Costs that do not change when a
business changes its output
- Uncertainty
- Occurs where there’s a lack of
information about a situation; this
means the outcome or
consequences are very difficult to
predict
- Variable costs
- Costs that vary directly with the
businesses level of output. The more
things you sell, the higher your
costs will be, however, with fixed
costs, they always stay the same
- Total costs
- Fixed costs
plus
variable
costs
- Problems of business planning
- Uncertainty- e.g. a new competitor may enter the market
after sales have been projected in the business plan. Lack of
experience. Change- if the plans are not regularly reviewed
and updated then the plan is of little value in setting
objectives.
- Costs
- Profit=
revenue - total
costs
- Revenue=
number of
units/products
sold
x
selling
price
- E.g. if sales of a product
were 500 and each product
was at £3: Revenue= 500 x
£3 Revenue= £1,500