Download Unit 8 Business Planning

A2 Applied Business
Unit 8 Business Planning
Planning to set up your own, local
business
 Producing documents that would need to
in real life
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Four areas of business
Food on the go
 Nails / hair
 Bike / computer repairs
 T shirt printing
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Task 1 – Which business idea?
Note these
Your knowledge and interests
 How much competition in the area?
 How easy to set up ?
 Expensive to set up?
 Trend in the business area – growth?
 Likely profits to be made
 Future expansion possible?
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Making a decision
You could devise a rating system to look at
different ideas – you could score them 1-5,
1-10 on different aspects to help make a
decision
 You could produce a SWOT table or table
of advantages and disadvantages
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Task 2 – Activities and Target
Market – Additional information
Explain the main products / services you
plan to offer – you could use CORE,
TANGIBLE and AUGMENTED
 Identify your target market – age, sex,
income group, area, lifestyle etc
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Task 3 - Location
Diss or Eye
 Look at the sample properties on the
Business A2 Subject area.
 Think about customer numbers,
competition, population of area etc
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Task 4 – aims and obectives
SMART OBJECTIVES
 Specific
 Measurable
 Achievable
 Realistic
 Time Related

Nutty’s Nachos
SMART OBJECTIVES?
1. To make a profit of at least £2,000 by the end of the first
year of trading
2. To sell more than 50 portions of Nachos in a typical
week of trading
3. To have at least 30 regular customers who would buy
nachos at least once a month
4. To develop awareness of the business in the Diss area
5. To ensure excellent standards of snack food
6. To develop a loyal customer base
7. To be the best snack food provider in the Diss area
Comments on previous slide
One two and three are examples of
OBJECTIVES – no1 is the best example
of a SMART objective
 4 to 7 are longer term aims which do not fit
the SMART CRITERIA
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Task 5 – Legal Status
Think about liability
 Funding
 Share of workload and decision making
 Distribution of profits
 Control of decision making and direction of
the business
 Ease and speed of set up of the business

Sole trader or partnership or
Private Limited Company
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Look at the case study.
What does this suggest?
If partnership need to consider Deed of
Partnership
Sole trader if want full control and all profit but
financing might be difficult
Extra paperwork for Ltd company – but limited
liability
Task 6 – Key Personnel
What people will work in the business?
 What will their roles (main jobs) be?
 Be careful – the more staff the higher the
wages and less likely to make a profit.
 You might want part time workers at busier
times. Otherwise could you manage with
just yourself and partners?
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