Question 1: Define the term 'business plan' and explain why it is important for starting a new business.

Answer: A business plan is a detailed document that outlines the business's objectives, strategies, target market, financial forecasts, and operational plans. It is important because it guides the business's development, attracts investors, and helps identify potential challenges.

Question 2: List three key components that should be included in a business startup plan.

Answer: Market analysis, financial plan, and marketing strategy.

Question 3: Describe two methods a new business owner can use to research their target market effectively.

Answer: Conducting surveys and questionnaires to gather customer preferences, and analyzing competitors to understand market demand and gaps.

Question 4: Explain the importance of setting SMART goals in business planning. Provide an example of a SMART goal for a new café.

Answer: SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. They help in clear planning and tracking progress. Example: 'Increase customer footfall by 20% within the first six months.'

Question 5: Sketch a simple layout for a small retail store. Include areas for customer service, checkout, stock storage, and displays.

Answer: A correct sketch should show a logical layout with designated zones: a customer entry area leading to display shelves, a checkout counter near the exit, a stock storage room at the back, and a customer service desk near the entrance.

Question 6: Identify two potential risks a new business might face during the planning stage and suggest ways to mitigate them.

Answer: Risks: Lack of sufficient capital and poor market research. Mitigation: Secure adequate funding before launching and conduct thorough market research to understand customer needs.

Question 7: Explain why cash flow management is crucial when planning a new business. Include one method to monitor cash flow.

Answer: Cash flow management is crucial to ensure the business can meet its financial obligations and operate smoothly. One method to monitor cash flow is to keep a detailed cash flow statement that tracks income and expenses regularly.

Question 8: Describe what a SWOT analysis involves and why it is useful in the planning process.

Answer: A SWOT analysis examines a business's Strengths, Weaknesses, Opportunities, and Threats. It helps identify internal and external factors that could impact success and guides strategic decision-making.

Question 9: Sketch a simple flowchart showing the steps involved in planning a new business from idea generation to launch.

Answer: A correct flowchart should include steps such as idea generation, market research, writing the business plan, securing funding, setting up operations, and launching the business.

Question 10: What is market segmentation and why is it important in enterprise planning?

Answer: Market segmentation involves dividing a broad target market into smaller groups with similar needs or characteristics. It is important because it allows businesses to tailor their marketing strategies to specific customer groups, increasing effectiveness.