Key Idea: At Higher Level, Topic 6.5 requires more detailed evaluation of business plans, including financial projections, market analysis depth, and the assessment of plan viability using quantitative and qualitative criteria.
✅ Why business plans matter: Helps secure finance. Forces clear planning. Sets targets and milestones. Highlights risk before launch.
⚠️ Main limitations: Based on forecasts and assumptions. Can become outdated quickly. Time-consuming to prepare well. May create false confidence if unrealistic.
HL answers should move beyond listing sections. The key is explaining whether the plan is realistic, internally consistent and convincing to investors or lenders.
Evaluation tip: a business plan may look strong on paper but still be weak if the market research is shallow, the sales forecasts are optimistic or the funding assumptions are unrealistic.
Important: Common trap: students list sections of a business plan without explaining why those sections matter or how they support viability.
- Identify the purpose of the business plan in the question
- Select the most relevant section or sections
- Explain what information those sections should contain
- Judge whether the information is realistic and evidence-based
- Comment on whether the plan would help decision-making or finance raising
- Add a supported judgement if asked to evaluate