business planning gcse

Business Plans

Why do businesses create plans.

It is important for any new or existing business to create a plan in order to have an understanding of how it plans to achieve its aims and objectives. There are 4 key reasons why businesses create plans:

Important for new businesses

• When Peter Jones and Theo Paphitis invested in Levi Roots Reggae Reggae Sauce, they asked to see Levi’s business plan before they committed to providing their expertise and investment.

Raising finance

• To decide whether to give finance to a business, investors and banks need in-depth financial information.
• When Facebook raised finance from venture capitalists to grow and when Snap Inc listed on the New York Stock Exchange they had to provide business plans.

Setting objectives

• A plan lets a business clearly set out what the business’ objectives are and how they are going to go about achieving them.
• These specific business objectives help firms to achieve their aims as they are measurable targets for the firm to work towards.
• It also allows a business to see which areas (growth, sales, profits etc.) they need to improve and which they are doing well on. If they fail to meet an objective then it can be easier to understand why it was not met.

Business organisation

• By detailing how functions of the business will be organised, a business plan can help improve the way that a business is run.
• A local cafe can plan its purchasing, pricing and staffing in a business plan that can help it manage its operations.

The Main Parts of a Business Plan

There are lots of different ways to structure a business plan. However, some sections are very important and are almost always included.

Executive summary

• The executive summary should be a concise overview of the entire business plan.

Mission statement

• A mission statement says what a company wants to achieve.

Products or services

• This section should clearly describe which products or services the company sells and why customers will benefit from this.
• This also may include what a product’s unique selling point (USP) is. The USP of a product or service is how this product or service is different (or unique) from the products or services offered by the competition.

Market analysis

• Analysis of competitors – Who the main competition are and where they are positioned in the market.
• Analysis of customers – The different customer segments and which of these will be the ‘target market’.

Organisation and management team

• This will outline the company’s organisation structure and provide personal details of the owners and other important personnel.

Production details

• This will outline how a firm will produce its products or provide its services.
• This includes things like the location of factories, who the suppliers will be, what materials will be needed and how much they will cost.

• Cost and profit - This includes detailed outlines of the forecasts for cost, revenue and profit.
• This section usually includes a cash-flow forecast and projected profit and loss account for the first 12 months of trading.
• Sources of finance - This section often includes details of how a company will fund investment if it is required.

Advantages and Disadvantages of a Business Plan

There are advantages and disadvantages of creating business plans.

• Business plans provide parameters for setting targets.
• Management can check staffing, incomes, product ranges and lots of other things against previous business plans and expansion plans.
• A business plan can be used as a benchmark against outcomes like cashflow, production outcomes or service delivery. The plan can also be compared to the behaviour of competitors and the business’ own performance in past years.

Disadvantages

• Businesses need to be flexible and able to adapt to a changing environment. A business plan may stop a company changing.
• Business plans can be costly and time consuming to make. If an entrepreneur has less time to spend designing a good product and selling to customers, then the time spent making a business plan may be negative for the business.
• Also, forecasts of revenue and profit may be misleading and lead to bad decisions.

1 Enterprise & Entrepreneurship

1.1 The Dynamic Nature of Businesses

1.1.1 The Dynamic Nature of Businesses

1.1.2 Risk & Reward

1.1.3 The Role of Business Enterprise

1.1.4 The Role of Business Enterprise 2

1.1.5 The Role of the Entrepreneur

1.1.6 End of Topic Test - Dynamic Nature of Business

1.1.7 Grade 9 - Dynamic Nature of Business

1.2 Spotting a Business Opportunity

1.2.1 Customer Needs

1.2.2 Market Research

1.2.3 Market Segmentation

1.2.4 The Competitive Environment

1.2.5 Primary & Secondary Market Research

1.2.6 End of Topic Test - Business Opportunities

1.2.7 Application Questions - Business Opportunities

1.2.8 Exam-Style Questions - Market Segmentation

1.3 Putting a Business Idea into Practice

1.3.1 Business Aims

1.3.2 Business Objectives

1.3.3 Business Revenues & Costs

1.3.4 Costs - Calculations

1.3.5 Revenue - Calculations

1.3.6 Business Profits & Break-Even Analysis

1.3.7 Profits & Losses - Calculations

1.3.8 Interest - Calculations

1.3.9 Cash & Cash Flow

1.3.10 Cash & Cash Flow 2

1.3.11 Cash Flow - Calculations

1.3.12 Sources of Business Finance

1.3.13 End of Topic Test - Business in Practice

1.3.14 Grade 9 - Business in Practice

1.3.15 Exam-Style Questions - Business in Practice

1.4 Making the Business Effective

1.4.1 The Options for Start-Up & Small Businesses

1.4.2 Limited Liability

1.4.3 Franchising & Not-For-Profits

1.4.4 Business Location

1.4.5 The Marketing Mix

1.4.6 Business Plans

1.4.7 End of Topic Test - Effective Business

1.4.8 Application Questions - Effective Business

1.4.9 Exam-Style Questions - Business Plans

1.5 Business Stakeholders

1.5.1 Business Stakeholders

1.5.2 Technology & Business

1.5.3 Legislation & Business

1.5.4 Legislation & Business 2

1.5.5 The Economy & Business

1.5.6 External Influences

1.5.7 End of Topic Test - Business Stakeholders

1.5.8 Grade 9 - Business Stakeholders

2 Building a Business

2.1 Growing the Business

2.1.1 Business Growth

2.1.2 Finance

2.1.3 Changes in Business Aims & Globalisation

2.1.4 Ethics & Business

2.1.5 The Environment & Business

2.1.6 End of Topic Test - Growing a Business

2.1.7 Application Questions - Growing a Business

2.1.8 Exam-Style Questions - Business Growth

2.2 Making Marketing Decisions

2.2.1 Product

2.2.2 Product Life Cycle

2.2.3 Price

2.2.4 Pricing Methods

2.2.5 End of Topic Test - Product & Price

2.2.6 Grade 9 - Product & Price

2.2.7 Promotion & Advertising

2.2.8 PR & Sales Promotions

2.2.9 Sponsorship & Product Placement

2.2.10 Promotional Mix

2.2.11 End of Topic Test - Promotion

2.2.12 Application Questions - Promotion

2.2.13 Exam-Style Questions - Promotional Mix

2.2.14 Place & Wholesalers

2.2.15 Direct to Consumer

2.2.16 E-commerce & M-commerce

2.3 Making Operational Decisions

2.3.1 Job Production

2.3.2 Batch & Flow Production

2.3.3 Working with Suppliers

2.3.4 Effective Supply Chains

2.3.5 Just In Time & Just In Case

2.3.6 Managing Quality

2.3.7 Total Quality Management

2.3.8 The Sales Process

2.3.9 End of Topic Test - Operational Decisions

2.3.10 Grade 9 - Operational Decisions

2.3.11 Exam-Style Questions - Managing Stock

2.4 Making Financial Decisions

2.4.1 Gross Profit & Net Profit - Definitions

2.4.2 Gross Profit - Calculations

2.4.3 Net Profit - Calculations

2.4.4 Rate of Return

2.4.5 Rate of Return - Calculations

2.4.6 Research & Financial Data

2.4.7 Marketing Data

2.4.8 Percentage Change - Calculations

2.5 Making Human Resource Decisions

2.5.1 Organisational Structures

2.5.2 Organisational Structures 2

2.5.3 Recruitment

2.5.4 Effective Recruitment

2.5.5 Training a Workforce

2.5.6 Motivating a Workforce

2.5.7 End of Topic Tests - Human Resources

2.5.8 Application Questions - Human Resources

2.5.9 Exam-Style Questions - Human Resources

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The Marketing Mix

End of Topic Test - Effective Business

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Business plan

A detailed description of a new or existing business, including the companies strategy, aims and objectives, marketing & financial plan.

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Setting Business Aims & Objectives | AQA GCSE Business

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The McKinsey / General Electric Growth Share Matrix

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Business Planning for a New Business (Revision Presentation)

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Business Planning - Introduction

Planning a new business (gcse), starting a business: contents of a startup business plan (gcse), how to start an airline.

1st March 2021

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INTERACTIVE VIDEO

It’s time to follow the journey of Finley Thomas, an aspiring entrepreneur who dreams of opening a small local shop. Throughout the interactive video, we will follow Finley through the process of creating a well-thought-out business plan, which is essential for the success of any business venture.

• DETAILED EXPLAINER VIDEO
• 10 QUESTION MULTIPLE-CHOICE QUIZ
• 6 INTERACTIVE ACTIVITIES
• INTERACTIVE CASE STUDY
• SUPPORTING STUDENT WORKSHEETS

CASE STUDY ANALYSIS MP MECHANICS

The real-life case study explores the journey of Molly Pratt, who started her own mechanics workshop in a small town in Lincolnshire, specialising in luxury vehicles. Despite approaching a bank for a loan of £20,000 to cover the costs of specialist equipment, she was unable to afford to employ any additional staff, resulting in high levels of stress. Unfortunately, MP Mechanics closed down in January 2019 due to a lack of interest in luxury vehicle repair and Molly's difficulties in managing the workload alone.

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GCSE Business

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Getting started: entry restrictions in OxfordAQA territories

Published 23 Aug 2021 | PDF | 148 KB

Switching to AQA: from Edexcel

Published 26 Sep 2017

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Approaches to Staffing ( Edexcel GCSE Business )

Revision note.

Economics & Business Subject Lead

Using a Business Plan to Obtain Finance

A business plan is a document produced by the owner at start-up , which provides forecasts of items such as:

The business idea ( sub-topic 1.1.1 )

The business aims and objectives ( sub-topic 1.3.1 )

The target market ( sub-topic 1.2.2 )

The forecast revenues, costs and profits ( sub-topic 1.3.2 )

The cash-flow forecast ( sub-topic 1.3.5 )

The sources of finance ( sub-topic 1.3.6 )

The business location ( sub-topic 1.4.2 )

The planned marketing mix ( sub-topic 1.4.3 )

The main aim of producing a business plan is to reduce the risk associated with starting a new business and help the owners to raise finance

Producing a business plan forces the owner to think about every aspect of the business before they start which should reduce the risk of failure  

Elements of a business plan

Having carried out research to support the plan, the business will be well-informed about the potential problems and chance of success and can select the most appropriate source of finance based on this information 

A well-written business plan can help a business to obtain finance

Lenders (e.g. banks) and other investors will be able to explore the plan and make an informed decision about whether the business is credible and worth the financial risk

Investors (e.g. venture capitalists ) will use the business plan to explore whether there is an opportunity to increase the value of their investment and make a worthwhile profit

The business, having carried out research to support the plan, will be well-informed about the potential problems and chance of success and can select the most appropriate source of finance based on this information

A clear action plan provides direction for the business and helps lenders and investors to have confidence in the future success of the business 

Most high street banks can provide a detailed template for business owners to complete when applying for finance.

A business plan cannot guarantee success - though it is very unlikely that investors or financial institutions such as banks would consider risking their money on a business without one!

Managers and business owners should keep the business plans up to date, treating it like a Curriculum Vitae (CV) for the business. It can help focus business activities and identify resources the business needs as well as providing justification to potential investors.

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• Making the Business Effective
• Understanding External Influences on Business
• Growing the Business
• Making Marketing Decisions
• Making Operational Decisions
• Making Financial Decisions
• Making Human Resource Decisions
• Enterprise & Entrepreneurship
• Spotting a Business Opportunity
• Putting a Business Idea into Practice

Author: Steve Vorster

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.

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GCSE Business Edexcel 9-1 Introduction lesson- entrepreneurs and enterprise- Showing Enterprise

Subject: Business and finance

Age range: 14-16

Resource type: Lesson (complete)

Last updated

30 August 2024

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This has 2 power point presentations. The ‘Introduction power point’ goes through the lesson covering: • Ice breaker • Understand what is expected from you in the first year of the course • Define the type of people that run businesses • Research the qualities and skills needed to run a business using real examples • Plenary The second power point is ‘Entrepreneur Slideshow’ which reinforces the skills entrepreneurs need and is used half way through the lesson.

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