Topic 6.5: Innovation Questions

Outline two sections that are typically included in a business plan.

Which of these belongs in the sources of finance section of a business plan?

Outline two sources of finance that could be stated in a business plan.

Define the term business plan.

State two financial forecasts that may be included in a business plan.

Define the term executive summary.

State two main purposes of a business plan.

A bank asks Rowan Bicycles for its business plan before agreeing a loan. Which purpose of the plan is this?

How does internal use of a business plan differ from external use?

Rivelle Cycles has written down what it aims to achieve over the next three years, with separate sections covering marketing, operations and finance. What has it produced?

What is the executive summary of a business plan?

Hollybrook Garden Centre is adding a café. Figure 1 is its Gantt chart; each block is one week, from week 1 to week 9. Figure 1: Gantt chart for the café | Task | Weeks 1 to 9 | |---|---| | A Agree the design | ██░░░░░░░ | | B Build the café | ░░██████░ | | C Recruit staff | ░░███░░░░ | | D Train staff | ░░░░░██░░ | | E Open the café | ░░░░░░░░█ | Using Figure 1, state: (i) how many weeks the whole project takes; (ii) the two tasks taking place in week 6; (iii) the week in which staff training starts.

Castleton Theatre, a charity, is staging a new play. Opening night is in 21 days and every ticket is sold; if the play is not ready, the theatre must refund all the tickets. Table 1: Tasks involved in the project | Task | Description of task | When task can start | Duration of task (days) | |---|---|---|---| | A | Choose and cast the play | First task to complete | 5 | | B | Rehearse the play | When A is complete | 12 | | C | Build the set | When A is complete | 7 | | D | Final rehearsal in costume | When B is complete | 2 | | E | Paint and light the set | When C is complete | 3 | | F | Dress rehearsal on the finished set | When D and E are complete | 1 | Using information from Table 1, calculate the total float for task E (no working required).

Why do investors often turn to the financial section of a plan first?

Outline the difference between an internal and external use of a business plan.

Explain one limitation of a business plan.

Explain why a cash flow forecast is especially important for a start-up.

Explain one reason why investors may focus most on the financial section of a business plan.

Explain one reason why a business plan includes an operations plan.

A start-up is applying for a bank loan. Explain two ways a well-prepared business plan can increase the chances of obtaining finance.