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Qualifications Edexcel GCSE Business 1.4 Making the business effective

1.4.4 Business plans

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What is the main purpose of a business plan?
To set out business goals and plans for achieving them
Which of these is an element of a business plan?
Forecast revenue, cost, and profit
What role does market research play in a business plan?
It helps in understanding the target market
Why are aims and objectives important in a business plan?
They provide targets that the business works towards
How can financial forecasts help a business?
By predicting future revenue and expenses
What might a new entrepreneur include in their business plan's financial forecasts?
Cash-flow forecast
What are potential sources of finance for a new business?
Bank loans
Crowdfunding
Personal savings
What factors should a business consider when choosing a location?
Proximity to the customer
Proximity to the competition
Proximity to suppliers
Proximity to labor
What are the '4Ps' in the marketing mix?
Price
Product
Promotion
Place
What is the importance of a cash-flow forecast in a business plan for a bank?
To assess the business's ability to manage revenue and expenses
Why is understanding the target market a crucial part of a business plan?
It determines how the business will meet customer needs
How can a business plan minimise risk?
By preparing for potential challenges
Why might a bank offer a lower interest rate on a loan to a business with a good business plan?
It indicates lower risk and better planning
What could be the most important part of a business plan for obtaining finance?
Sources of finance and revenue forecasts
Why would an entrepreneur need expert help with financial forecasts in their business plan?
To ensure accuracy and feasibility of the financial projections
How does a business idea contribute to the development of a business plan?
It forms the basis for the business's goals and strategies
What could be the role of a business plan in influencing a venture capitalist's decision to invest?
Demonstrating the business's potential for profit and growth