Business Planning

L.O. To explain the different aims and objectives of different

enterprises
Key terms:
Aim: An overall goal that
an enterprise wants to
Read the following extract and state how Nike can conduct market research achieve
their target market
Objective: a specific target
that an enterprise wants to
reach so it can achieve its
aims
 Why do entrepreneurs set objectives?
•It helps with decision making/establish priorities
•It helps investors
•It provides targets
•It can motivate everyone connected with the business
•It gives the entrepreneur and employees clear direction.
 To be effective, an objective should clearly state:

- What the target is

- When it has to be achieved
- Who is to achieve it
- How to achieve it
Objectives
Identify 6 business objectives displayed in the images below
Aim or objective?
• Are the following statements an aim or object, explain why

1. "To become the preferred local hangout spot." Aim

2. "Increase annual revenue by 20% within the next fiscal year." Objective
3. "To provide high-quality, sustainably sourced coffee and snacks."Aim
4. "Expand the business to a new location in the neighboring town."
5. "To be aObjective
recognized leader in promoting environmental
sustainability."
Aim
• The aim of "To become the preferred local hangout spot" is a
broad, long-term goal focusing on the cafe's image and popularity.
• The objective of "Increase annual revenue by 20% within the next
fiscal year" is specific, measurable, and time-bound, contributing to
the financial growth of the business.
• The aim of "To provide high-quality, sustainably sourced coffee
and snacks" emphasizes the cafe's commitment to quality and
sustainability.
• The objective of "Expand the business to a new location in the
neighboring town" is a specific target that contributes to business
growth and market expansion.
• The aim of "To be a recognized leader in promoting environmental
sustainability" is a broader goal related to the cafe's reputation and
values.
Plenary
 Business Planning
L.O. To explain the different aims and objectives of different
Key terms:
enterprises Action plan: A list of tasks
Fill in the gaps that need to be completed
in order for a set goal to be
achieved
Action plans
 Why do you think most enterprises fail?

Poor planning is one reason why many enterprises fail. Planning ensure
that the right things are done at the right time.
 So what do you think an action plan may be?

An action plan provides a step-by-step framework of individual activities

needed to complete a project. It will show you:
 What needs to be done
 When it needs to be done
 Who needs to do it
 How will the progress be monitored
Purpose and importance of action plans
 An action plan can help an entrepreneur :
 Better understand what needs to be done so that the right things
are done at the right time
 Identify the key stages of a project by having to think carefully
about what they want to do – this can stop them from doing the
wrong things, which wastes time and effort
 Identify potential obstacles and issues that need to be resolved so
that they can think about how to manage or avoid them
 Keep track of who is responsible for what and when
 By acting as a checklist to monitor progress so that everything is
done on time. Any problems or delays can then be spotted quickly,
and suitable steps can be taken before its too late
Stages in constructing an
action plan
Plenary
 Key terms:
Business Planning Monitor: to check or review
the progress of something
L.O. To explain the purpose of an action plan over a period of time

Poor planning is one reason why many enterprises fail. Planning ensure that the right
things are done at the right time.

An action plan provides a step-by-step framework of individual activities needed to

complete a project. It will show you:
 What needs to be done
 When it needs to be done
 Who needs to do it
 How will the progress be monitored
Starter
 Key terms:
Monitor: to check or review
Monitoring action plans the progress of something
over a period of time

 Anaction plan is a step-by-step guide to help you

achieve your goal. However, you also need to
know if you are on track. Monitoring is simply
how you plan to check whether a task has been
completed or not.
 Think of methods of monitoring…

 When selecting monitoring methods you need to check…

Why is it important to update an action
plan?
Plenary
 Sunday 14th January

Business plans
L.O. To explain what a business plan is and its purpose

Read the following extract. How does this impact businesses?

 Business plan: a formal document that gives the
aims of the enterprise and outlines ways those
aims will be achieved
Business plans

 This is important for any enterprise whether it is starting up or going to

expand
 It tells you what the business will do
 It allows the entrepreneur to think and focus on the aims of the business, the
market and competition, its financial needs and the resources

 A business plan helps reduce risks

Business plan

 Acts as a focus for the entrepreneur to think about what

they are doing and why it is good idea
 Information is provided about the market, competitors and
potential demands
 Identify costs and financial needs
 Evidence to show an idea is possible
 Allows you to think ahead
 Used to produce targets and then measure success
 Help with organisation
Contents of a business plan
 Preliminary information
 The information about the business such as the name, address,
objective, organisational structure
 Marketing
 Size of the market, competition, pricing, promotion, product and place
 Operation
 How the enterprise will work. Production details, resources
 Human resources
 Number of employees and who will have which roles
 Financial
 Key targets, cash flow forecast, break-even, budgets, income statement,
balance sheet, sales revenue, costs
 Sunday 14th January

Business plans
L.O. To explain what a business plan is and its purpose

Read the following extract. How does this impact businesses

Methods of monitoring business plans

 Comparing the actual figures to the budget is important and allows

the entrepreneur to monitor the progress
 Financial data: cash flow, profit, costs, sales numbers and revenue
 Operations data: total level of output, output per employee
 Marketing data: feedback from customer surveys, customer retention
numbers, market share, number of people seeing tour marketing
communication
 Human resources data: number of employees, attendance levels,
hours worked
Reason for updating business plans

 A business plan is working document that can be used as a guide and to

monitor progress. Plans cannot be completely accurate as they are based on
hysterical information, projections and estimates about what is expected
happen. Internal and external factor change
Reasons For Updating Business Plans

 A business plan is a working document that can be used as a guide and to

monitor progress.
 Plans cannot be completely accurate as they are based on historical
information, projections and estimates about what is expected to happen.

Internal and external factors change

 Wednesday 17th
January

Business Plans
L.O. To explain the importance
of a business plan and updates

Risky
Achieve
Guidelines
Potential
Objectives
Funding
Entrepreneur
 CHANGE OF
NEED Chapter 5
Why Update a Business Plan?
OWNERSHIP OR
MANAGEMENT ADDITIONAL 
conclusion
If the business plan is not reviewed
FINANCE and updated to reflect such
changes, wrong decisions may be
COSTS CHANGE taken; wasting time and money.
 For example; if demand falls you
EXTERNAL will need to reduce output, to avoid
FACTORS SUCH making unwanted products resulting
AS POPULATION in additional costs.
CHANGE

ACHIEVED
ORIGINAL
OBJECTIVES

GROWTH CHANGES IN
MARKET OR
NEW PRODUCTS COMPETITION
DEVELOPED
2 Objectives might include: increase profit by cleaning more
houses, spread risk by offering office cleaning, provide good
service as shown by customers being pleased, survival as only
a small start-up business

3 Possible answers might include: the original objectives were

completed so new targets need to be set; costs change so
there may be a need to adjust figures/prices to ensure can
break even; changes in competition may mean elements of
the marketing mix need to be altered to stay competitive.
1. Identify two aims a small business might have, other than
survival and maximizing profit
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2. Look at item B above. Explain one way in which the arrive

of Rye Ltd. May have affected Karen’s aims
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3. Explain why the aims for Rye Ltd. Are likely to be

different to the aims for Karen’s Sarnies. Identify one aim
Rye Ltd. Might have in your answer
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4. Explain the importance of an action plan to an enterprise
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5. Discuss how the carrying out of an action plan can be effectively

monitored
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6. An action plan will contain important information about the aims and
objectives of a project and will set targets. These targets will need to be
SMART. What does SMART stand for?
7a. Explain one reason why it is a good idea for Sam to write
a business plan
………………………………………………………………………
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…………………………… 8. Outline the main components of a business plan
7b. Explain two reasons why Sam’s business plan may cause …………………………………………………………………
him problems in the future ……………………………
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9. Discuss why it is important for an enterprise to
update its business plan
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Plenary