Enterprise · Both
Business Plans & Forecasting
A business plan sets out aims, market, operations, people and finance – useful for the owner and for lenders.
Typical contents
Executive summary, product/service, market research, marketing mix, operations, HR, financial forecasts, risk.
Forecasts
Sales and cash-flow forecasts show expected timing of money in and out.
Lenders look for realistic assumptions and repayment ability.
Worked example
Why might a bank reject a plan?
Solution: Unrealistic sales, weak cash flow, insufficient owner investment, unclear market.
Practice questions
1. Name three sections of a business plan.
2. Why forecast cash flow?