Question 1: Define what a business plan is and explain why it is important when starting a new business.

Answer: A business plan is a detailed document that outlines the goals, target market, resources, and financial projections of a new business. It is important because it helps entrepreneurs organise their ideas, attract investors, and guide the business's growth.

Question 2: List three key pieces of information that should be included in a market research report for a new café.

Answer: Target customer demographics, competitors in the area, and popular menu items or trends.

Question 3: Describe two methods a budding entrepreneur can use to research potential customers.

Answer: Conducting surveys or questionnaires to gather customer preferences, and observing customer behaviour in similar businesses to understand their needs.

Question 4: Explain why setting clear objectives is important when planning a new business.

Answer: Clear objectives provide direction and focus for the business, helping to measure progress and make informed decisions.

Question 5: Identify three resources or skills that are essential for starting a small enterprise.

Answer: Financial capital, knowledge of the industry, and marketing skills.

Question 6: Sketch a rough layout for a small retail shop. Label the areas for customer browsing, checkout, storage, and staff workspace.

Answer: A clear sketch should show a basic shop layout with designated zones for customer access, checkout counters, storage room, and staff area, with labels for each.

Question 7: List two potential challenges a new business might face during the planning stage and suggest ways to overcome them.

Answer: Challenge 1: Lack of funding – overcome by creating a detailed budget and seeking small business grants or loans. Challenge 2: Identifying the right target market – overcome by conducting thorough market research and customer surveys.

Question 8: Explain the importance of setting a realistic budget in the planning process of a new enterprise.

Answer: A realistic budget helps ensure there are enough funds to cover start-up costs and avoids overspending, which could lead to financial difficulties.