Business Plan Edexcel 1.4

What does USP stands for?

• Universal Standard Pilot

• Unique Selling Point

• United Service Providers

• Ultimate Secondary Procedures

Increased concern from consumers over the environment has led to new business start-ups developing products from recycled materials. These business ideas have come about due to:

• Services that have become obsolete

• Products that have become obsolete

• Changes in consumer demand

• Changes in the interest rate

What is a business plan?

• Written document that only outlines the business practices of the new business.

• Written document that describes the financial aspects of the business.

• Written document that only describes the ownership of the business.

• Written document that describes all the steps necessary for opening and operating a successful business.

a business plan 

• is useful once your business is operational but not much help during the startup phase
• is not usually needed to secure financing in your business
• can serve as a tool for managing your business once it is up and running
• All of the above

Why do you need a business plan?

• To explain your idea

• the ability to get financing.

• it's a road map that sets objectives and goals for the business

• All of the above

True or False: Business plans are used by new, rather than established, firms

• TRUE

• FALSE

Lack of overall planning and poor decision-making can lead to business failure. This is known as:

• Poor management

• Poor quality

• Poor understanding of the economy

• Poor sales levels

Your business plan should never list any risks or potential problems.

• True

• False

Which of the following statements about business plans is TRUE?

• Business plans eliminate risk to lenders

• Business plans reduce risk to lenders

• Business plans increase risk to lenders

• Business plans have no impact on risk to lenders

Which one of these pieces of information would NOT be in a business plan produced by a new business?

• Target market

• Market research

• Profit

• Estimated cashflow