1.6 Business planning

Question	Answer
A business plan	Document setting out what a business does and wants to achieve
Revenue	Money your receive from sales
Business planning	Producing a plan for the business
Fixed costs	When costs of the business does not change
Uncertainty	Lack of information about a situation so consequences are hard to predict
Variable costs	Costs that are equal to the amount of output
Risk	Something going wrong or not
Total costs	Fixed costs that stays the same
Why a business plan may be created?	To analyse data Raise finance Set objectives co-ordinate
Good points of business planning	Earning money Starting your own business Being your own boss Getting to build your own business Flexible working hours Manage the finance Receive profits
Bad points of business planning	Having to split profits evenly Starting the business Getting the money Getting your own business ideas Making decisions Taking risks Handling the money fairly Place business in a good location Lock of knowledge about the business Change Lack of experience
Reduce risk of business planning	Research the market detail Get guidance Plan for possible situations Update the business plan

Resource summary

	Created by Tasmin Thiara about 6 years ago