Business Planning
A business plan is a detailed statement
setting out the proposals for a new
business
Business Links
DTI
Accountants
Solicitors
Estate Agents
Business Advice
Banks
Chamber of Commerce
ACAS
Trade Associations
The Entrepreneur needs to have skills in…
•Administration and management
•Marketing and selling
•Finance, book keeping and payroll
•Production and operations
•Research and development
Business Ownership
Sole Trader
Partnership
Limited Companies
Franchise Opportunities
Business Names Act 1985
Partnership Act 1890
Legal Implications
Tax
•Tax on profits
•VAT is added on goods and services
•Income tax
•National Insurance Contributions
Licences
Different types of business activity requires licences
Examples – to sell alcohol; fireworks; medicines; taxi service;
food, etc
Health and Safety legislation:
Health and safety at Work Act 1974
Employment Legislation
•Employment Act 2002
•Sex Discrimination Act
•Race Relations Act
•Equal Pay Act
•Disability Discrimination Act 1995
•National Minimum Wage Act 1998
Environmental Legislation:
Clean Air Act 1993
Environmental Protection Act 1991
Pollution Control and Prevention Act 2000
Consumer Legislation
•Trades Description Act 1968
•Sale of Goods Act 1979
•Supply of Goods and Services Act 1982
•Consumer Protection Act 1987
• Data Protection Act 1984
Insurance
•Theft
•Fire
•Damages
•Liability
Business Objectives (Aims/targets)
•Survival
•Expand market share
•Maximise sales
•Maximise profitability
•Provide value for money to customers
•Increase business size
•Increase size of profits
•Increase staff numbers
•Quality issues
•Produce products as cheaply as possible
•Support local suppliers
•Support charitable causes
•Support local community
Mission Statements:
•What the business does
•What it aims to achieve overall
Vision Statements:
•Future developments
•What it plans to achieve
•Values and standards
Our core purpose is to create value for customers to earn their
lifetime loyalty.
Our success depends on people. The people who shop with us and
the people who work with us.
If our customers like what we offer, they are more likely to come back
and shop with us again.
Tesco PLC
Corporate objectives should be:
Quantifiable defined in way that can be measured.
Achievable they must be targets that the business
can realistically meet.
S - pecific
M - easurable
A - ttainable
R - ealistic
T - imed
Corporate objectives are
turned into departmental
objectives
Corporate Planning (long term objectives)
•Up to 5 years
•Involves all areas of the business i.e. profitability, product range, etc
Operational Planning (short term objectives)
•Objectives and targets
•Targets tend to be within areas i.e. human resources planning
Planning Cycle
Set objectives,
i.e. increase sales
Monitor
Progress,
i.e. taking
corrective
action
Collect
Information,
i.e. assessing
situation
Make Plans,
i.e. how to achieve objectives
Stakeholders
…people who have an interest in the business
Owners/
Shareholders
Communities
Managers
Employees
Stakeholders
Customers
Suppliers
Financiers
Government
Owners/Stakeholders
•Have a financial stake in the biz
•Want to see profits
Suppliers
•Regular contracts
•Prompt payments
Government
Pay taxes on profits
Give employment to locality
Financiers
•Ability to pay loans
Local Communities
Employment
Places to shop
Customers
•Quality products & services
•Good customer service
•Continuity of supply
Employees/Managers
•Fair wages
•Good working conditions
•Job security
SWJ AS Biz