Question 1: Define the term 'business plan' and explain its importance in starting a new enterprise.

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

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

Answer: Market analysis, financial projections, and operational plan.

Question 3: Describe two methods you could use to conduct market research for a new product.

Answer: Surveys and questionnaires to gather customer opinions; and competitor analysis to understand the market landscape.

Question 4: Identify two potential risks a new business might face and suggest a way to manage each.

Answer: Risk: Lack of initial funding; management: secure funding through loans or investors. Risk: Poor market demand; management: conduct thorough market research before launching.

Question 5: Sketch a simple layout for a small retail shop, including areas for customer service, product display, and storage. Label each area clearly.

Answer: A large rectangle divided into sections: front area labeled 'Customer Service', middle section labeled 'Product Display', and a back area labeled 'Storage'.

Question 6: Explain why setting SMART objectives is important in the planning stage of a business.

Answer: SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound. They help ensure clear direction, facilitate progress tracking, and improve chances of success.

Question 7: Identify two legal requirements that a new business in the UK must comply with before starting operations.

Answer: Registering the business with Companies House and obtaining necessary licenses or permits.

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

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

Question 9: Outline the steps involved in creating a financial forecast for a new business.

Answer: Estimating startup costs, projecting expected revenues, calculating ongoing expenses, and determining profit margins over a set period.

Question 10: Sketch a timeline for the first six months of launching a new business. Include key activities such as market research, product development, and marketing.

Answer: A horizontal timeline divided into six segments labeled Month 1 to 6, with arrows pointing to activities: Month 1-2: Market research; Month 3-4: Product development; Month 5: Marketing campaign; Month 6: Launch.