IB Business and

Management
1.6 Business Plans
 Learning Outcomes
• Analyse the importance of the importance of the
information in the business plan to different
stakeholders
• Analyse and Interpret Business Plans
 What is a Business Plan?
A business plan is:
A report showing the plans of the business
The business plan describes out the market
opportunities the business intends to exploit, how it
will do so and what resources are required
 Video
• Watch the video ‘How to write a business plan’

• What are the main sections in a Business plan?

A business plan helps you to:
• Clarify your vision and decide whether or not to go
ahead with an idea.

• Determine if your product and/or service has a

sufficient market to support it and whether or not it
will be profitable.

• Estimate your start-up costs and how much you'll

need to invest or finance.

• Convince investors and lenders to fund your

business.
 Task – Example Business Plans
• Pick one of the business plans on Haiku

• Answer the questions on the ‘Business Plans Task’

 Business Plans and
Stakeholders
• How are business plans useful to ‘Internal
Stakeholders’
• Which external stakeholders will be interested in a
business plan?
• How are business plans useful for ‘External
Stakeholders’
Internal Uses of Business Plans
Clarify objectives
Provide a sense of direction and
purpose
Forces research to be done
Monitor progress and success
Improve motivation and
communication
Allocate responsibility
Can be proactive rather than reactive
 Business Plans – Essential For
Raising Finance
A business plan is essential to:
Persuade people to invest in an enterprise (VC or
Angels)
Convince creditors about the credit worthiness of the
enterprise
Obtain a bank loan

To persuade banks and others to lend or invest money it is

necessary to:
Demonstrate the lender/investor has a good chance of
being repaid or getting a good return on their investment
Build confidence about the firm and owners’ capabilities
Demonstrate that there is a good market for the product
or service
Business Planning cycle
 Characteristics of good Busines
Plans
Business plans are more effective if…
They are carefully researched
They contain detailed market analysis
They are used as a reference point for
decisions
Actual performance is compared with
objectives and objectives are regularly
updated
They evolve over time to ensure that growth
targets are realistic and challenging