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Hello Everyone,

Today I will be talking to you about what a business plan is, The importance of a business plan and what different businesses plans will look like.

SO...

What is a business plan?

A business plan is a document that sets out a business's future objectives and their strategies for achieving these objectives (to show that these objectives are achievable).

What a business plan has to take into consideration

Competitors - What is unique about your product that will make your company more favourable over other bigger and more established companies. E.g. More Environmentally Friendly, Cheaper.

How you're going to become successful - If a business has to secure investments they will need to convince potential investors why they should put money into it. Telling them how you are going to be successful in a business plan could convince them to invest in the company.

Aims - The most important one. Without aims a business plan wouldn't be a business plan.

The Importance of a business plan

One reason why business plans are useful for a company is because it can be used as something to motivate the owner whilst working, if he can see that he is on track or ahead with his targets this will boost the owners morale. If the company is not doing well this also is a motivation as a sign that more work needs to be put in to achieve the targets.

If a business plan has clear plans, aims and objectives for the company then they are more likely to achieve those goals. Everyone in the business must know the goals to emphasise the importance of working well in the company.

One of the other main reasons a business plan is made is to make sure the business survives and making sure it knows how to keep their company out of debt.

It allows us to identify our target market E.g. Children, Teenagers or Adults. It also allows us to identify the profile of the customer E.G. Mountain Climber, Cook or Teacher.

Business Related Aims

Survival
Get more Exposure
Build a good reputation
Sell a certain amount of products
Profit Maximisation
Pay off any bank loans
Build a big social media following
Success
Have Employed Staff
Increase Market share
Market Dominance

SMART Objectives

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S - Specific

M - Measured

A - Attainable

R - Realistic

T - Timed

The different objectives of different businesses (New or Established)

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New

To increase awareness by customers of the business

To grow the reputation of the business

Survive

Established

To increase market share

To achieve market dominance

To be UK market leader

To increase customer satisfaction levels

To be innovative, introducing new products to the markets

Reduce the costs of the company

Thank You for reading the blog I hope this lesson is useful,

Matthew