Start-ups & the importance of business planning

Thanks to Tim Mason for the “heads-up” on a superb new resource. A new five-week series in the Sunday Times enterprise section looks like it will be essential reading for Business teachers and students. The series kicks off with an article showcasing the role of business planning and market research in a series of start-ups…

This series really does look useful for AQA AS Business Unit 1, Edexcel AS Business Unit 1, and even the new AQA GCSE Unit 1 being taught from Sept 09.

The first article focuses on business planning.

We look at many of these issues in our CPD workshops for AQA Unit 1. Some great business studies content in the article, including:

Having a detailed business plan is one thing; but executing it is another. A`plan is all about action.

90% of new businesses fail within three years (note - the failure rate for new franchise outlets is much less than that)

The important thing is to establish whether there is a market in the gap, not whether there is a gap in the market.

In a market where profit margins are tight, it is essential to get a strong grasp of product costings.

The amount of planning required depends on the kind of start-up. It is also linked to the amount of investment being put in. Larger, more complex start-ups require more detailed business plans.