Practice Flashcards
Flip to reveal answersWhat is a business plan?
Track your progress — Sign up free to save your progress and get smart review reminders based on spaced repetition.
All 20 Flashcards — Purpose and structure of a business plan
Sign up free to track progress and get spaced-repetition review schedules.
Question
What is a business plan?
Answer
A formal written document outlining goals, strategies and how the business will achieve them — a blueprint for success.
💡 Hint
Written blueprint
Question
Name four key elements of a business plan
Answer
Executive summary, business description, market analysis, marketing strategy, operations plan, HR plan, financial forecasts, sources of finance.
💡 Hint
Summary, market, marketing, finances
Question
Two limitations of a business plan?
Answer
Based on predictions (uncertain), can become outdated quickly, time-consuming, may give false confidence, some succeed without one.
💡 Hint
Predictions + outdated + time
Question
Business plan = formal document with goals, strategies, ___
Answer
And financial forecasts — the blueprint for the business.
💡 Hint
Finances
Question
Plans can give false confidence if ___
Answer
Based on optimistic assumptions — rosy projections aren't reality.
💡 Hint
Optimistic assumptions
Question
Executive summary = ___
Answer
Brief overview of the whole plan — the first thing investors read.
💡 Hint
Brief overview
Question
Name three reasons to write a business plan
Answer
Attract investors/finance, think through the idea, set goals/milestones, identify problems, guide decisions.
💡 Hint
Investors, goals, problems, guide
Question
Purpose: attract investment, plan ahead, set ___, identify ___
Answer
Milestones; risks.
💡 Hint
Milestones + risks
Question
In fast-changing markets, plans become ___ quickly
Answer
Outdated — the market moves faster than the document.
💡 Hint
Outdated
Question
Limitations: based on predictions, outdated, ___
Answer
Time-consuming to create and may give false confidence.
💡 Hint
Time-consuming
Question
Market analysis includes ___
Answer
Target market, competitors, demand — understanding who you're selling to.
💡 Hint
Target, competitors, demand
Question
Banks and investors want to see a plan because ___
Answer
It shows the business is organised, has thought ahead, and is worth investing in.
💡 Hint
Shows credibility
Question
Financial forecasts include ___
Answer
Cash flow forecast, projected P&L, break-even analysis, start-up costs, sources of finance.
💡 Hint
Cash flow, P&L, break-even
Question
Some entrepreneurs succeed without a plan because ___
Answer
They adapt quickly and rely on intuition — but this is riskier for most.
💡 Hint
Intuition + adaptation
Question
Essential for start-ups seeking ___
Answer
Finance — banks and investors require a credible plan.
💡 Hint
Finance
Question
A business plan forces the entrepreneur to ___
Answer
Think through the idea carefully — testing assumptions before spending money.
💡 Hint
Think it through
Question
Quick: Key elements include executive summary, market analysis, ___
Answer
Marketing strategy and financial forecasts.
💡 Hint
Marketing + finances
Question
Creating a good plan is ___ but worth it for ___
Answer
Time-consuming; attracting finance and avoiding costly mistakes.
💡 Hint
Time vs benefits
Question
A business plan guides decision-making as ___
Answer
The business grows — providing a reference point for strategic choices.
💡 Hint
Reference for growth
Question
If asked to 'state two elements', pick from list and ___
Answer
Give a brief explanation of each — not just the name.
💡 Hint
Name + explain
Read the notes
Full study notes for Purpose and structure of a business plan
Topic 6.5 hub
Business plan
More from Topic 6.5
All flashcards in this topic
BM exam skills
Paper structures & tips
Track your progress with spaced repetition
Sign up free — Aimnova tells you exactly which cards to review and when, so you remember everything before your IB exam.
Start Free