U7 Learning Aim A - Business Decision Making
LEARNING OUTCOME A - BUSINESS PLANS
Business plan
This can be written as a document which describes your business.
It will cover objectives, strategies, sales, marketing, financial forecasts, and
any other important information that is needed.
A business plan helps to:
⁃ Clarify your business idea
⁃ Spot potential problems
⁃ Set out your goals
⁃ Measure your progress
⁃ Secure investment or a loan from a bank
⁃ Convince consumers, suppliers, and employees to support you
Business ideas
⁃ Business ideas can crop up at any time
⁃ It can be the initial idea for a business
⁃ Or it can be an idea to develop your existing business
⁃ 50% of all new businesses fail in the first 5 years so just because you
have an idea it doesn’t mean it is guaranteed to be a success
Business ideas can be justified as:
⁃ Start up ideas
⁃ Developing ideas
Start up business
A start up business idea is when a new business idea comes about because of the
following
Reason for a business idea Explanation Business example
Gap in the market A gap in the market is when a business offers a product or
service that people want but currently can’t get. Its an opportunity where other
businesses aren’t meeting customer needs. Primary spotted a gap in the market for
trendy clothing at a low price. Other fashion retailers were cheap but
unfashionable or fashionable but expensive, so primary filled the gap by offering
both.
Competitors Looking at competitors helps a business see what other companies are
doing well and what they are missing. This can give ideas on how to improve a
business or make it different so they stand out. Starbucks looked at its
competitors and noticed customers wanted more dairy-free options. By adding oat,
soy, and almond milk, Starbucks improved their offer and stayed competitive.
Current trends They are changes in what customers like or want. Businesses can
use these changes to create products or services that match new customer behaviour.
Gym shark noticed a trend where young people wanted gym clothes that looked
stylish as well as being practical. They used this trend to create fashionable gym
wear, which has helped the brand grow quickly.
Likely demand This is when a business predicts that lots of people will want a
product or service. If the business predicts this correctly, the idea is more
likely to be successful. Gym shark predicted that there would be high demand
for stylish gym wear among young people. Because they were right, the business grew
quickly and became very successful.
Developing business
You also need ideas for an established business, especially if you are wanting to
improve your business and develop it further.
LEARNING OUTCOME A - BUSINESS PLANS
Business plan
This can be written as a document which describes your business.
It will cover objectives, strategies, sales, marketing, financial forecasts, and
any other important information that is needed.
A business plan helps to:
⁃ Clarify your business idea
⁃ Spot potential problems
⁃ Set out your goals
⁃ Measure your progress
⁃ Secure investment or a loan from a bank
⁃ Convince consumers, suppliers, and employees to support you
Business ideas
⁃ Business ideas can crop up at any time
⁃ It can be the initial idea for a business
⁃ Or it can be an idea to develop your existing business
⁃ 50% of all new businesses fail in the first 5 years so just because you
have an idea it doesn’t mean it is guaranteed to be a success
Business ideas can be justified as:
⁃ Start up ideas
⁃ Developing ideas
Start up business
A start up business idea is when a new business idea comes about because of the
following
Reason for a business idea Explanation Business example
Gap in the market A gap in the market is when a business offers a product or
service that people want but currently can’t get. Its an opportunity where other
businesses aren’t meeting customer needs. Primary spotted a gap in the market for
trendy clothing at a low price. Other fashion retailers were cheap but
unfashionable or fashionable but expensive, so primary filled the gap by offering
both.
Competitors Looking at competitors helps a business see what other companies are
doing well and what they are missing. This can give ideas on how to improve a
business or make it different so they stand out. Starbucks looked at its
competitors and noticed customers wanted more dairy-free options. By adding oat,
soy, and almond milk, Starbucks improved their offer and stayed competitive.
Current trends They are changes in what customers like or want. Businesses can
use these changes to create products or services that match new customer behaviour.
Gym shark noticed a trend where young people wanted gym clothes that looked
stylish as well as being practical. They used this trend to create fashionable gym
wear, which has helped the brand grow quickly.
Likely demand This is when a business predicts that lots of people will want a
product or service. If the business predicts this correctly, the idea is more
likely to be successful. Gym shark predicted that there would be high demand
for stylish gym wear among young people. Because they were right, the business grew
quickly and became very successful.
Developing business
You also need ideas for an established business, especially if you are wanting to
improve your business and develop it further.
