Question 1: Define the term 'business plan' and explain its importance in the enterprise planning process.

Answer: A business plan is a detailed document that outlines the goals, strategies, target market, financial projections, and operational plans of a business. It is important because it guides the business's direction, attracts investors, and helps manage resources effectively.

Question 2: List three key elements that should be included in a market research plan for a new enterprise.

Answer: Target market analysis, competitor analysis, customer needs and preferences.

Question 3: Describe two methods a new business owner can use to identify their target audience.

Answer: Conducting surveys and questionnaires to gather customer preferences; analyzing competitors’ customer base to understand potential demographics.

Question 4: Explain why financial planning is a crucial part of enterprise planning. Provide two specific examples of financial considerations.

Answer: Financial planning is crucial because it helps ensure the business has sufficient funds to operate and grow, and it minimizes financial risks. Examples include estimating start-up costs and projecting cash flow over the first year.

Question 5: Sketch a simple diagram of a cash flow forecast for a small business. Label the main sections such as income, expenses, and net cash flow.

Answer: A clear cash flow forecast should include sections for projected income (sales), expenses (rent, salaries, supplies), and the calculation of net cash flow (income minus expenses).

Question 6: Identify and explain two potential risks a new enterprise might face during the planning stage.

Answer: Market risk, where there is uncertainty about customer demand; and financial risk, where insufficient funds could hinder operations or growth.

Question 7: Draw a basic flowchart that illustrates the steps involved in developing a business plan, starting from idea generation to launch.

Answer: A flowchart with the following steps: 1. Generate Business Idea, 2. Conduct Market Research, 3. Develop Business Strategy, 4. Prepare Financial Plan, 5. Write Business Plan Document, 6. Seek Funding, 7. Launch Business.

Question 8: Explain how setting SMART objectives can improve the planning process of an enterprise. Provide one example of a SMART objective.

Answer: SMART objectives (Specific, Measurable, Achievable, Relevant, Time-bound) help clarify goals and provide clear targets to work towards, improving focus and effectiveness. Example: 'Increase sales by 10% within the next six months.'

Question 9: Describe how a SWOT analysis can assist in the planning phase of a new business.

Answer: A SWOT analysis helps identify the business’s Strengths, Weaknesses, Opportunities, and Threats, allowing entrepreneurs to develop strategies that leverage strengths and opportunities while addressing weaknesses and threats.