1) Information Plans should be based on accurate and factual information. When detailed information is not available the planner will have to rely on experience and judgement. This should not be a mere guesswork.
2) Time The environment in which a business operates is constantly changing. The plan drawn up for a business will therefore vary according to the period of time for which it is intended. A short time scale demands a detailed business plan. For a longer period the plan will be less detailed.
3) Flexibility A plan should be constantly changed as circumstances change and more information becomes available.
4) Control The existence of a plan does not ensure success. The progress must be constantly checked if it is to be implemented properly. Control relies on accurate information.
Working in pairs, answer the questions.
a) What is planning?
b) What does the difference between the planning of individuals and planning in business lie in?
c) What sequence of measures does the planning process include?
d) What principles should each business plan be based on?
3.Read the text again. Find and write down words in the text that mean the same as the following words and definitions. They are in the same order as they appear in the text.
b. to be going to achieve
c. something that you try to gain
d. the process of deciding how you will do something before you do it
e. basic items
h. knowledge and skill gained through time spent doing a job or activity
i. your ability to understand a situation well and make good decisions
k. the conditions and influences in which people carry on a particular activity
l. to run a company or organization
m. steadily varing
o. to make
r. to say in a very firm way that you want something
s. the ability to make changes or to deal with a situation
t. to make people behave in the way you want them to behave or to keep something at the correct level
u. to guarantee advancement
v. to fulfil
w. in due way
Work in small groups.
1) Have any of you ever had to consider or draw up a business plan? Why do you think an entrepreneur needs a business plan? Give specific reasons to support your answer.
What information do you think a business plan must represent?
1.Skim through the text 3 and think of the suitable title.
A business plan is a detailed written statement that describes the nature of the business, the target market, the advantage the business will have in relation to competition, and the resources and qualifications of the owner(s).
It may be months or even years between the birth of an idea and the starting of a business. During this time the would-be entrepreneur should be developing and refining the business plan. The business plan is likely to highlight problem areas in a proposed business. There are three reasons for this:
1. A thorough investigation into the costs, markets and available finance, clearly presented will identify the areas of weakness in the original idea and allow them to be eradicated before they cost money or lead to failure.
2. A good business plan will impress people like bank managers, both in its information and the business-like qualities of the person who has drawn it up.
3. The discipline of drawing up a business plan can draw attention to the areas in which the business lacks experience.