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Economic and management sciences

Grade 6

The business plan

Module 7

What is a business plan?

"Plan your work and work your plan. If you fail to plan, you plan to fail."

Ancient entrepreneurial truth

It is true that many successful business people managed to develop successful businesses without much planning. If they could do it, we might also manage it.

Let us look at the simple example of having a barbecue. It may be possible to braai without any equipment, but to do so with the help of a grid and a pair of braai tongs is much easier and certainly less painful. Using the appropriate tools simply improves our chances of success.

What is a business plan?

It is a document drawn up by an entrepreneur to indicate the nature of the business and the steps to be taken to develop it into a successful business . It is like a textbook or road map against which an entrepreneur can measure or test himself/herself continually to determine whether he or she is on the right track. There are three particular reasons why it is important for such a businessperson to draw up a sound business plan.

  • It gives the prospective businessperson an idea of whether he/she actually wants to become involved with the specific type of business.
  • The business plan should indicate danger zones.
  • It serves as a continuous measure for the entrepreneur to control whether he/she is on track.
  • It is a useful document for external parties, like banks, to determine whether they want to / can become involved with the business.

What information should be summarised in a business plan?

A business plan should provide basic answers to the following questions:

Who would be interested to pay for the product or service?

Why should they want to have it?

How would the product or service be promoted?

What will the marketing costs be?

Who will produce/deliver the product/service and what will the costs be?

How would the business be organised and managed?

Where would the money be obtained to start the business?

Will the business be profitable?

Assessment

Learning Outcomes(LOs)
LO 4
ENTREPRENEURIAL KNOWLEDGE AND SKILLSThe learner will be able to demonstrate entrepreneurial knowledge, skills and attitudes.
Assessment Standards(ASs)
We know this when the learner :
4.2 identifies a variety of possible business opportunities in the community (school co-operatives, sports, entertainment, tourism);
4.3 designs an advertising campaign to promote a product that will generate a profit;
4.4 participates in a fair or market day at school or in the community to practice and apply entrepreneurial knowledge and skills;
4.5 describes how the four elements of the marketing mix are combined in a simple business activity.

Questions & Answers

principle of effective demand?
Abubakar Reply
the is the situation in which the need of individuals exceed the available resource. increase in population rate and wrong decision making
esther Reply
what is the different between wants and demand?
Terkimbi
wants are what people desire to have but they can live without them and demand is a thing that is most wanted
Murewah
what are the demand pull inflation
Hijja
the higher the aggregate level of activity, the larger the proportion of areas and industries which experience excess demand for goods and labour of various sorts , and the more powerful is demand-inflationary pressure . Demand inflation is contrasted with cost inflation , in which price and wage
Murewah
increases are transmitted from one sector to another. These should be regarded as different aspects of an overal inflation starts , cost inflation explains why inflation once begun is so difficult to stop.
Murewah
what is the important difference between positive and normative economics
Umar
positive economics is the study of how an economy works in practice, as opposed to the theoretical study of how it should run in theory and normative economics is the party of economics that is concerned with how the economy ought to be run.
Murewah
positive economic deal with fact and also talks about how the economy actually is like while normative economic deal with value judgement and talks about how the economy ought to be like
esther
What is the difference between opportunity cost and choice
Murewah
opportunity cost are also known as forgun alternative why choice is to select one among alternative
Terkimbi
importance of economic
Zakaria Reply
satisfaction of human wants
Festo
economics is about to economise . discuss
Angel Reply
Underlines the efficiency aspect. Economise towards what: Economise factors to reach equal distribution of Material wealth or Just to operate optimally to Service demand, i. e. Run markets efficiently?
Homo
join the conversation
abba Reply
what is terms of trade
Ibrahim Reply
different btn import and export
Angel
No question... This is nice
Gbenga Reply
hw can we solve problem of scarcity
Oigebe
scarcity is not necessarily a problem but a constant condition of the world. there are not enough resources to satisfy the unlimited wants.
Matthew
wee need to be cooperative
Zakaria
by unlimited resourses and abundant want
Angel
why do compute GDP?
steven Reply
can anyone shortly determine the word inflation.
Ibrahim Reply
Continous increase in the general level of prices or in the cost of living.
arshad
persistent increased in general price level
Machall
all correct...
paa
inflaction
Angel
rise in price.
Abubakar
deserving of money
Lazizjon
the father of economics
Reuben Reply
Adem smith
sj
Adem smith
Ajit
Adem smith sure
Adigwe
the father of economic regarding to adam Smith
Ibrahim
the father of political of economic and capitalism in his book and inquary in to the wealth of the nation.
Umar
Adam Smith his the father of economic
Mamudu
difference between injection and leakage
Asif
what is monopoly
Razak
Monopoly is a market structure where there is one firm who dominate the industry
wisdom
hi,, I am new here. please welcome me.
Mohammad
you are welcome
Adigwe
monopoly is the one characterized by a mkt power in which a firm is a price maker
Festo
Some member just ask questions but not answering so y this happen
Festo
Monopoly is a market where only one seller exists. No competition
Fred
how long does the patent right prevail the monopoly
Festo
no attempt
Zakaria
what is state farming
Sadiq
anybody to attempt
Festo
different types of price elasticity of demand with the aid of graphs
Tshepo Reply
what about mean median and mode
Dike Reply
mode is the most occurred number and median is the middle digit
John
the mean is the sum of all the data divided by the number eg: 2+4+4+5+3+5+1 =24÷7
BEGE
economics
ghani
what is exchange rate
Festo
thanks guys
Runwell
What is Equilibrium?
Santos
that when supply equals demand. that's where the supply curve and the demand curve intercept.
Oladele
equilibrium is when the both side of the price is balanced
Asuquo
Thanks Asuquo Agwuu
Santos
what is paradox Of drift
doris Reply
***economicsdiscussion.net/income/concept-of-paradox-of-thrift-with-diagram-micro-economics/713
lungku
it's thrift not drift
lungku
so what is it sir
Festo
what are the causes of unemployment
Afful Reply
lack of job in the rural areas
Nicholas
High level of illiteracy
Muhammad
Unfulfilled government promises
Vee
this one no be problem waii
Nicholas
low rate of industrialisation
Mimi
elements of economic
Muhammad Reply
Supply demand consumer and money.
Muhammad
Difference between extinct and extici spicies
Amanpreet Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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While the American heart association suggests that meditation might be used in conjunction with more traditional treatments as a way to manage hypertension
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in a comparison of the stages of meiosis to the stage of mitosis, which stages are unique to meiosis and which stages have the same event in botg meiosis and mitosis
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Source:  OpenStax, Economic and management sciences grade 6. OpenStax CNX. Sep 08, 2009 Download for free at http://cnx.org/content/col11013/1.1
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