UNIT 2 - Module Three: SMALL BUSINESS

What is entrepreneurship?

• The initiation of a combination of innovations to address a problem in society.

• The practice of applying entrepreneurial skills and mindset within an established organization, rather than starting one's own business.

• The process of overseeing and directing the operations of a small business to achieve its goals effectively and efficiently.

• The capacity and willingness to develop, organise, and manage a business venture along with any of its risks in order to make a profit.

What is the main purpose of a business plan?

• To secure a business loan from an official lender.

• To provide guidelines for operating the business and decision-making.

• To communicate the purpose of the venture and what it wants to achieve in the future.

• To give an idea of whether the business has the potential to be successful and to set targets.

What is the primary challenge of preparing a business plan?

• It can waste precious time and money.

• It may not be accurate.

• It is required if you want to apply for credit.

• It helps you forecast future steps.

What does the Industry Background section of a business plan provide?

• Information to understand the shape, size, trends, and key features of the industry.

• A description of the sources of finance and projections for profit and loss.

• A clear and comprehensive description of the business.

• A summary of all the other sections of the business plan.

What is the purpose of the Competitor Analysis section in a business plan?

• To understand who the potential competitors are and reduce the risk of failure.

• To provide a guide for potential investors as to the attractiveness of the business.

• To describe the day-to-day operation of the firm and the facilities required.

• To outline the main elements of the proposed business, including future projections of income and profits.

What is the main benefit of preparing a business plan?

• It communicates the purpose of the venture and what it wants to achieve in the future.

• It is required if you want to apply for credit and secure a business loan.

• It helps you allocate resources and create a workable budget.

• It allows you to forecast future steps and set targets.

What does the Operations Plan section of a business plan describe?

• The elements of the proposed business, including the name and location, nature of the business and product, legal establishment, and objectives.

• The target market, channels of distribution, and how the product will be transported to the end user.

• The sources of finance, expected sales, expected cost of producing the product or service, and projections for profit and loss.

• The day-to-day operation of the firm, facilities required, machinery and equipment needs, space required, and labour needs.

What is the purpose of the Managerial Summary section in a business plan?

• To give a clear and comprehensive description of the business.

• To outline the main elements of the proposed business, including future projections of income and profits.

• To provide a summary of all the other sections of the business plan.

• To describe each member of the management team and their expertise.

What does the Market Analysis section of a business plan focus on?

• The target market and how the product or service will satisfy the wants and needs of the target market.

• The industry background and information to understand the shape, size, trends, and key features of the industry.

• The competitors within the industry and their market share, marketing strategy, and key success factors.

• The sources of finance, expected sales, expected cost of producing the product or service, and projections for profit and loss.

What is the main challenge of preparing a business plan?

• It is required if you want to apply for credit and secure a business loan.

• It helps you forecast future steps and set targets.

• It communicates the purpose of the venture and what it wants to achieve in the future.

• It can waste precious time and money.