Business Plan
List 4 Types of legal requirements of a business.
A business needs to comply with the following types of legal requirements:
o Trading Licenses and permits to operate legally
o Taxation regulations
o International trading /Exporting & Importing requirements/ Exchange rates
o Registration fees.
o Registration
o Basic conditions of Employment Act
o Labour relations Act
o National Credit Act
o Environmental Conservation Act
o Patents and copyrights
What is the importance of a business report
• Business reports enable management to keep track of every activity done in each department.
• It enables senior management with information on how each department is doing.
• It provides information that leads to decision making.
Name and explain the types of research instruments.
1.Questionnaires
• Questionnaires are designed to collect information from people about their attitudes/preference/level of knowledge/personalities/beliefs etc.
• A questionnaire consists of a series of questions that are developed to gain information from respondents.
• Respondents give answers in writing
• Responses may be immediate/direct or need to be emailed.
2.Interviews
• Business situations provide opportunities for interviews with employers, customers, analysts etc.
• The interviewer leads the interview by asking questions and the interviewee responds to the questions
• Responses are collected from an individual or a group and may be recorded
• Questions should be carefully prepared and selected to avoid any biasness.
• Questions should be carefully prepared to avoid anything that might be sensitive and offensive
• Helps businesses to collect the same type of information from many people.
• Businesses do not require processing assistants as they are able to analyse responses/data.
What is the meaning of creative thinking?
• Creative thinking is the ability to think original, varied and innovative ideas.
• It focuses on exploring ideas/generating possibilities/looking for many possible solutions.
• Thinking in a way that is unconventional and original
• It is the act of producing new ideas and making them real.
• Generating new ideas and being open to new ideas.
• Focuses on exploring ideas/generating possibilities and looking for many possible answers.
What are the contents and features of the cover page in the business plan?
• It contains the following information:
o The name of the business
o Contact details of the owner(s)and address
o The logo
o Type of the business
• A copyright disclaimer to protect the contents of the plan
Explain the purpose of the executive summary in the business plan.
- included to satisfy those who do not have time to go through the entire plan in detail.
- most lenders and investors read it first before the entire business plan.
- it gives readers an idea of what is contained in the business plan.
List the types of visual aids
• Data projector
• Handouts
• Interactive Whiteboard/ Smart board
• Video conferencing equipment
• Flyers / Brochures
• Posters/Signs/ Banners/ Flags
• Overhead projector
• Charts/ Flip Charts/ White boards
• Graphs.
• Diagrams
What is the meaning of a business opportunity?
A business opportunity is an idea for a product /service that will meet needs/desires, and that can be sold or leased to earn an income.
• Entrepreneurs should be constantly on the lookout for new business opportunities to be competitive.
• It is an idea that can be converted into viable, income-producing business.
• Each need and desire is a possible business opportunity.
• It is a gap in the market when peoples’ needs, and desires are unfulfilled.
Explain the difference between decision making and problem solving.
Decision making:
Often done by one person or senior management
Existing alternatives are considered and choosing a best solution to a problem.
It does not form part of problem solving since decisions need to be taken for each step of the process.
Creative thinking:
Carried out by a group of people
Encourages creative thinking since it aims at finding a new solution to a problem.
Innovative solutions are generated, implemented, and evaluated.
Name and explain the application of SCAMPER
• Substitute: Replace part of the problem with something new
• Combine (mix): Arrange parts of a problem in a creative way to cancel out the problem
• Adapt: Look at existing solutions and adapt them to solve the current problem.
• Modify: Exaggerate the problem and see if that can be adjusted to solve the whole problem
• Put to other use: Use part of the problem for something else
• Eliminate: Get rid of some parts of the problem
• Rearrange: Push the idea around and rearrange so that it can be seen differently.
List the elements of the financial plan
- Budget
- Cash flow statements
- Income statement
- Break-even point
- Balance sheet
What is the purpose of the visual aids
• They add value and clarity of the presentation.
• They make the presentation more interesting and memorable.
• Visual aids reinforce what the presenter has said.
• They create an atmosphere such as showing videos.
• Helps get the message across more easily.
• Keeps the audience engaged during the presentation.
• They add power and punch to the presentation
• Enhance presentation
• Create excitement
• Help the audience to remember the presentation
Give the steps in developing a research instrument.
Entrepreneurs have to be clear about what they want to know about potential customers’ thoughts/ behaviours/habits/need/desires/financial status etc.
• Give clear, concise instructions on how to answer each section.
• Questions must be short, simple and easy to read.
• Ask simple /unambiguous/clear questions that will lead to an excellent data collection.
• Avoid leading people with the question as a true reflection of what people want or feel may not be obtained.
• Participants/Respondents must not be confused nor offended.
• A questionnaire can also include multiple choice questions that offer a number of options or questions where things must be ranked according to a scale e.g. strongly disagree/disagree/agree/strongly agree.
• The interview schedule can consist of both closed and open questions.
• Test the questionnaire or interview schedule on yourself or friends to see if works and if the required information will be obtained.
Outline the problem solving cycle.
1. Identify the problem
2. Define the problem
3. Formulate a strategy
4. Choose the best solution
5. Allocate the resources
6. Implement the strategy
7. Monitor the problem solving
8. Evaluate the problem-solving process
Identify the 7Ps represented in statements below:
1. Resources were bought in bulk and the business was granted cash discount.
2. Right quality and quantity of raw materials were delivered at the shop on timee.
1. Price
2. Product
Give the 7Ps of the marketing mix. (In the correct order)
Product
Price
Place
Promotion
People
Process
Physical environment
Outline the guidelines on writing an effective business report.
• Determine the scope of the report
• Determine the target audience of the report
• Determine how the report should be presented
• Collect the necessary information
• Prepare an overview of what the audience needs to know and details that should be included in the report.
• Write concisely/briefly and only include important information
• Use regular/basic language/simple grammar and clear short sentences
• Use accurate/meaningful visual aids such as tables, graphs, drawings etc.
• Spend time revising the report and correct spelling mistakes and grammatical errors
• Get someone to look at the report and to make suggestions for improvement.
What are the types of data collection?
Primary data
• Primary data is first-hand information that is collected by the researcher through interviews and questionnaires.
Examples of primary data:
• The potential market for a new product or service
• Client satisfaction levels with products or services that are currently offered
• Possible geographical position of a potential new business
Secondary data
• Secondary data is second-hand information that is obtained through academic books, journals, references etc.
Examples of secondary data:
• The demography of a community
• The average level of income in a community
Explain how businesses can apply the delphi technique.
• A panel of experts is invited to participate in the process.
• Experts do not have to be in one place and will be contacted individually.
• A questionnaire is designed and distributed to the panel
• The panellist responds to the questionnaire individually/recommend improvements to the products and return it to a business.
• The responses from the experts are summarised in a feedback report.
• The feedback report and a second set of questions/questionnaire related to the feedback are sent to the panellists.
• The panellists read the feedback report and decide if they wish to change their initial ideas/suggestions/solutions.
• They then complete the second questionnaire
• A final summary and feedback report is prepared.
• Consensus is reached and the best solution is chosen.
Advise the factors to consider when preparing/designing a presentation
o Use large, clear fonts that are easy to read
o Use outlines on slides and keep detailed explanations for the verbal presentation
o Limit each slide to five or six lines
o Make sure the grammar is correct
o Proofread carefully
o End with a closing message that the audience will remember.
o Be colourful and grab attention
o Be meaningful and appropriate
o Select a suitable background
o Avoid long sentences and keep it simple
o Avoid fancy decorations
What are the strategies to overcome competition in the market?
The business should use the following strategies to overcome competition in the market:
o Sell quality products and services
o Offer after-sales services
o Charge reasonable prices
o Conduct intensive marketing campaigns
o Make use of clever advertising slogans
o Make your product unique
o Provide attractive product displays
Advise Sasha on the factors that they need to consider when preparing for a verbal presentation
• Write down the purpose of the presentation and list the objectives
• Consider the audience e.g. who are they /what do they already know/what you want them to know
• Prepare the structure of your presentation e.g. introduction/body/conclusion.
• Be fully conversant with the content of your presentation.
• Create visual aids that will assist in getting the points across effectively and memorably.
• Practice the presentation and time your presentation.
• Practice in front in front of someone who will provide honest opinion on the purpose and objectives of the presentation.
• Information to be presented should be relevant and accurate
• Have pre-knowledge of your audience to determine the appropriate visual aids
• Visit the venue and ensure that visual aids, the use of your equipment/availability of a generator in case of load shedding or electricity is available.
• Prepare your support material to enhance your presentation
• Prepare for the feedback session by anticipating possible questions/comments
The differences between internal and external market research
INTERNAL MARKET RESEARCH
• It is the research conducted from within the business.
• Employees together with general employers indicate taste, type of products/services of the business.
• Different resources are used for gathering business information for helping management to make informed decisions.
EXTERNAL MARKET RESEARCH
• It the research that is conducted from outside the business.
• Businesses use data from market research that has been conducted in the past by other organisations/ statistics published by the government.
• Useful information about the target market, environment and about customers’ needs and desires can be obtained.
Ways in which businesses can use creative thinking to solve business problems.
Products and services can be marketed creatively
• New products can be designed to meet changing tastes and demands
• Existing products can be adapted creatively to meet changing tastes and demands
• Managers can come up with creative strategies for the business
• Managers can motivate and manage staff in creative ways in order to get the best from them.
• Employees can think for themselves and come up with creative solutions to all kinds of business problems
• Creative public relations strategies can be designed and implemented.
• Encourage a spirit of play and experimentation in the workplace.
• Give feedback on employees’ performance
• Provide time/resources/opportunities for creative problem solving
• Encourage brainstorming sessions for employees
• Train employees on creative thinking and problem solving techniques.
• Recognise and reward achievement
• Encourage employees to express their ideas and take risks in a safe/non-threatening environment.
Discuss how businesses can apply nominal group technique to solve business problem.
• The group is divided into a smaller group of 5 or 6 people around the table
• The problem is defined clearly.
• Each individual silently brainstorms as many ideas as possible and write them down
• One by one, each person in the group gives one of their solution and someone writes them all down on a big sheet of paper.
• Everyone gives a second solution, and so on until all possible solutions have been recorded.
• No one is allowed to criticize, but participants may ask questions to understand the suggested solution more clearly.
• Each person reads through all the suggestions and anonymously rates them giving the highest points for the best solution, down to the lowest point for the one they like the least.
• The ratings are collected, and the points collected and calculated.
• The group is given the results of which idea received the most points, the second most points, and so on.
• Each group presents the solution that was deemed the best according to the votes.