Economics topic and Business Topic

executive summary 3 business aims and objectives 3 business environment 3 marketing 4 Finance 4 Conclusion 5 referenceS 5

This section is a summary of your business plan. Include the following information:

· What is your business idea? What is your product: are you going to sell a good or a service? What are your USPs? What are the reasons for you to choose to set up and run your own business, and believing that it will be successful? (e.g. unique idea, there is a ‘gap in the market’, other personal reasons, explain).

· What form do you choose for your new business: a sole trader business, partnership, private limited company (Ltd), or public limited company (plc)? Give reasons explaining your choice relating to advantages and disadvantages of the chosen business form.

· What sources of business advice and support are available for your business? Consider how would you raise funds to make up the necessary capital for your new business? (Consider here the sources of finance available to you such as bank loan, overdrafts, grants, personal funds/savings, family and friends etc).

· State the key financial figures for your new business: such as the amount of capital required; your total start-up costs figure; when would your business break-even? What is your projected final figure for profit (or loss) by the end of the 1st year of running the business? (Simply state the figures here, explanation, calculations/reasoning will be given in the ‘Finance’ section below)

· What are your business aims (broad aspirations of your business)?

· What are your business objectives? Ensure that your objectives are SMART.

· What vision do you have for your business?

· What is your business’s mission statement (why does it exist, its purpose)?

· Conduct analysis of the external business environment in the UK using SWOT and PESTLE models. Identify and apply relevant information from external environment that has an impact on your business.

· You need to conduct much research for this section and use the relevant information in your work citing the sources.

· You will need to show your Knowledge & Understanding of these models and ability to Apply the Theory considering the impact on your business. Briefly state what each model is used for and their key benefit(s). Apply the models to your business context, and consider the steps you can take in response to external factors you have identified.

· Conduct SWOT analysis and list your business’s strengths & weaknesses, identify opportunities & threats from the UK environment relevant to your business. In your SWOT evaluation, consider how you will use the information, your response, e.g. how will you minimize the threats, use opportunities (what these mean for your business).

· Conduct PESTEL analysis: address each of the 6 factors of this model. Conduct secondary research and identify points (elements) relevant for your business from the UK business environment. Cite the sources of information used. Then apply each element of PESTEL model to your business: consider what impact each element identified has on your business and how could you respond to them (i.e. what could you do to effectively respond to each factor).

I. Briefly state what type of market research you have conducted, and from which sources (state generally) have you collected your data?

II. Which segments (customer markets) are you going to target? Who would be your typical customer? (You may outline the ‘customer profile’ of each segment).

III. Explain and apply the elements of Marketing Mix (4 Ps) to your business.

· In doing so, state clearly what is your product: a good or service? Provide a brief description of your product, stating its features, customer benefits etc. (If you have a long list of products, you may state the main ones here, and place the longer list in the Appendices section at the end of your business plan)

· Which pricing strategy or technique will you choose to use for setting up your prices? What will be your prices?

· How will you distribute your product? i.e. which channels of distribution will you choose to make your product available (to sell) to your customers?

· How will you promote your product/s? It would be good to consider advertising and sales promotion in particular here.

IV. What are your USPs? USPs can be related to any of the 4Ps and to the customer benefits (i.e. how customers would benefit from what you as a business offer them). In identifying USPs it might be useful to consider where your business offer stands out (from similar competitors’ offers) and why customers would buy your product? E.g. consider quality, product design, prices (are your prices lower or higher than the competitors’ prices? Is there anything unique about your distribution?)

V. Conduct research to support your points. Cite the sources of information used. Use the correct marketing terms in this section when applying all of the above to your business. This will show your knowledge & understanding of the theoretical aspects, as well as your ability to apply the concepts accurately to your business.

· How much money will you need to start your business, i.e. what is the capital required?

· Where will you get the funding for your business which will comprise your ‘capital’, which sources of finance will you use? State the proportion of contributions that will make up the capital (e.g. bank loan 50%, personal funds/savings 50%, if there are several shareholders in Ltd., or partners in partnership, what will be their individual contributions? etc.)

· Identify in a Table your business start-up costs

· It is good to also consider in a separate Table the running costs (expenses) for the first 3-6 months (especially, if you do not estimate to be earning profits straight away after launching your business).

· Your ‘capital’ must cover your start-up costs (and possibly the costs of the first 3-6 months).

· What is your estimated cash flow forecast for Year 1? (i.e. for the 1st year of your business operating on the market?).

· Conduct the break-even analysis, and identify the expected break-even point. (The point from which onwards your business is expected to start earning profit.)

· Back up some of the financial figures you present with research data, citing the sources. (E.g. justify the rent figures in the area you have chosen to set up your business by citing the real estate company’s website; support the figures for interest rates for a business loan you may have taken, by citing a bank’s website etc.).

· Summarise the main aspects of your Business Plan report.

· It is good to make your conclusion somewhat analytical, and provide a good reasoning/justification for why you believe your new start-up business will be successful.

List all the sources of information here making sure that your references are in the Harvard referencing format, in alphabetical order (by author’s name), stating the accessed date (for online sources).

In-text citations must match the reference list, and vice vera.

Book: “Cite them Right” by Pear and Shields (Available in the Library (LRC).

Check MyINTO Business page for “Referencing Guide (Harvard Referencing System)” which will give you clear guidance as to how use the Harvard Referencing format for in-text citations and end list of references correctly.

You may include any additional information as Appendix A, Appendix B, Appendix C etc.

(THIS PAGE IS LEFT BLANK FOR YOU TO MAKE NOTES)

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