Functions and importance of a business plan - Attract investment/access finance, Set objectives and strategies, Assess market potential, Identify potential risks and challenges. , Attract investment/access finance (Functions and importance of a business plan) - Provides investors/lenders with evidence to judge whether business is viable (using Executive Summary, Financial Plan, Market Analysis), Set objectives and strategies (Functions and importance of a business plan) - Sets targets and strategies to achieve them that can then be used to measure performance (using Sales and Marketing, Business Model Canvas), Assess market potential (Functions and importance of a business plan) - Identifies demand, competitors/barriers to entry, target market size (using Market Analysis, Sales and Marketing), Identify potential risks and challenges (Functions and importance of a business plan) - Recognise obstacles (competition, production limits, financial risks, or staffing issues) (using Market Analysis, Financial Plan, Operational/Production Plans), Business plan at different stages - 1. Start-up Stage, 2. Growth and Expansion Stage, 3. Maturity Stage, 1. Start-up Stage (Business plan at different stages)  - Clarifies idea/value proposition. Essential to force the entrepreneur to create a detailed financial plan to assess viability and access finance from LEOs/investors., 2. Growth and Expansion Stage (Business plan at different stages) - To secure further funding, the plan needs to show growth potential, using revised projections and updated strategic goals to justify investment., 3. Maturity Stage (Business plan at different stages)  - Supports ongoing operations, used to benchmark performance, track output, control costs., Importance of ethics and sustainability when planning in business - 1. Improves Reputation and Brand Loyalty, 2. Attracts Investment, 3. Ensures Legal and Regulatory Compliance, 4. Supports Long-Term Profitability, 1. Improves Reputation and Brand Loyalty (Importance of ethics and sustainability when planning in business) - Builds trusts, shows values, highlighted in marketing e.g. having an ethical purpose or socially conscious mission, 2. Attracts Investment (Importance of ethics and sustainability when planning in business)  - Improves ESG and financial sustainability for planet-positive growth, 3. Ensures Legal and Regulatory Compliance (Importance of ethics and sustainability when planning in business) - Helps avoid legal or regulatory issues e.g. avoids chances of breaking environmental, labour laws, or being in a scandal e.g. using sweat shops, 4. Supports Long-Term Profitability (Importance of ethics and sustainability when planning in business) - More future-proofed to changes e.g. use of green energy will help avoid changes in laws or taxes that will impact on non-green businesses., Business model - Outlines how a company will operate, create, deliver, and capture value in economic, social, and cultural contexts. E.g. Sky’s business model is primarily subscription based for tv, broadband and mobile., Role of a Business Model within the business plan - It is the core idea that connects and supports all elements of the business plan – shows how the business generates their income and creates value for themselves and consumers., Identify the key elements of the business model canvas - Customer Segments, Customer Relationships, Key Resources, Value Propositions, Revenue Streams, Key Activities, Channels, Cost Structure, Key Partnerships , The most common business models - Retail, Manufacturing, Subscription, Franchise, Affiliate, Retail E.g. SPAR (Compare the most common business models) - Buys finished goods from wholesalers or manufacturers and sells directly to customers. Income: Adds a markup to the price paid for goods. Value: Offers convenience, product variety, and loyalty rewards e.g. Tesco club card, Manufacturing E.g. White Fox (Compare the most common business models) - Makes products from raw materials and sells them to retailers or directly to consumers. Income: Sells goods at prices above production cost. Value: Offers innovation and efficiency through in-house production and direct sales., Subscription E.g. Gym membership, Sky (Compare the most common business models) - Charges customers a recurring fee for continued access to a product or service. Income: Earns regular payments (e.g. monthly/annual) e.g. gym membership Value: Provides access, personalisation, and flexible options., Franchise E.g. Supermacs (Compare the most common business models) - Lets franchisees open branches using business’s name, brand, logo, systems for a fee/% Income: Gains revenue from franchise fees and royalties. Value: Faster business growth, franchisees use their own capital to open new branches., Affiliate E.g. TikTok user / Amazon (Compare the most common business models) - Promotes other businesses’ products online and earns a cut of any resulting sales. Income: Earns a commission for each sale made through referral. Value: Offers targeted marketing and trusted recommendations., How digital technology is a driver of change in business - Artificial Intelligence (AI) and Machine Learning (ML), Big Data and Analytics, Cloud Computing, Blockchain, E-commerce Platforms, Internal drivers, External drivers, Artificial Intelligence (AI) and Machine Learning (ML) (How digital technology is a driver of change in business)  - Automate tasks, personalise customer service, and speed up decision-making using smart algorithms., Big Data and Analytics (How digital technology is a driver of change in business)  - Turn large datasets into insights. Helps businesses predict trends and make smarter, faster, cheaper decisions not possible before., Cloud Computing How digital technology is a driver of change in business)  - Offers flexible, on-demand IT services. Makes scaling and remote working easier without major upfront costs., Blockchain (How digital technology is a driver of change in business) - Enables secure, transparent record-keeping. Improves supply chain traceability and trust for trading globally., E-commerce Platforms (How digital technology is a driver of change in business) - Simplify setting up and running online stores. Help businesses reach more customers and reduce costs., Internal drivers (How digital technology is a driver of change in business) - Innovation, Efficiency and Automation, Market Research and Data Analysis, Employee Collaboration, External drivers (How digital technology is a driver of change in business)  - Evolving Consumer Behaviour, Competitor Pressure, Globalisation, Media & Public Image, Technology-driven business models - Marketing, Subscription, Crowdfunding, Advertising-supported, Marketplace E.g. Adverts.ie, Vinted (Compare a number of technology-driven business models) - Rev: Earns through commissions or listing fees on transactions. Consumer: Low or free access; sellers may pay to post. Scalability: Very scalable, platforms grow fast as more users join. User engagement: Reviews, ratings, and personalisation keep users active., Subscription E.g. Strava, Spotify (Compare a number of technology-driven business models) - Rev: Recurring payments (e.g. monthly/annually). Consumer: Pay to access or unlock full features. Scalability: Easy to scale globally with low added cost. User engagement: Customised content and new features retain users., Crowdfunding E.g. Kickstarter, GoFundMe (Compare a number of technology-driven business models) - Rev: Collects money upfront from many individuals. Consumer: Free to browse or back a project; rewards for supporters. Scalability: Campaigns can reach large audiences online. User engagement: Updates and storytelling build emotional buy-in., Advertising supported E.g. YouTube, Facebook (Compare a number of technology-driven business models) - Rev: Advertisers pay per view, click, or impression. Consumer: Usually free to use; ad-free versions may cost. Scalability: Grows quickly as more users and content generate more ads. User engagement: Algorithms keep users scrolling or watching longer.,

Chapter 8 Key Takeaways

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