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NotesBusiness ManagementTopic 6.5Key components of a business plan
Back to Business Management Topics
6.5.21 min read

Key components of a business plan

IB Business Management โ€ข Unit 6

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Contents

  • Financial forecasts in the plan
  • Marketing and operations in the plan

๐Ÿ’ฐ Financial forecasts

The financial section is what investors care about most. It shows whether the business can survive and grow.

  • Cash flow forecast โ€” predicted cash coming in and going out each month
  • Projected profit and loss โ€” expected revenue minus expected costs
  • Break-even analysis โ€” how many units must be sold to cover costs
  • Start-up costs โ€” one-off costs needed to launch
  • Sources of finance โ€” loans, savings, investors, grants
Financial forecasts are educated guesses โ€” they won't be perfectly accurate, but they show you've done your homework! ๐Ÿงฎ

๐Ÿ“ฃ๐Ÿญ Marketing and operations

Marketing strategy section

  • Who is your target market?
  • What is your marketing mix (product, price, place, promotion)?
  • How will you compete with existing businesses?
  • What makes your product different (USP)?

Operations section

  • How will you produce the product or deliver the service?
  • Where will you operate (location)?
  • What equipment and technology do you need?
  • Who are your suppliers?

Related Business Management Topics

Continue learning with these related topics from the same unit:

6.1.1What is a SWOT analysis?
6.1.2Using SWOT for strategic decisions
6.1.3Writing SWOT-based recommendations
6.2.1The Ansoff matrix
View all Business Management topics

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IB Exam Questions on Key components of a business plan

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How Key components of a business plan Appears in IB Exams

Examiners use specific command terms when asking about this topic. Here's what to expect:

Define

Give the precise meaning of key terms related to Key components of a business plan.

AO1
Describe

Give a detailed account of processes or features in Key components of a business plan.

AO2
Explain

Give reasons WHY โ€” cause and effect within Key components of a business plan.

AO3
Evaluate

Weigh strengths AND limitations of approaches in Key components of a business plan.

AO3
Discuss

Present arguments FOR and AGAINST with a balanced conclusion.

AO3

See the full IB Command Terms guide โ†’

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6.5.1Purpose and structure of a business plan
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