Simple Single Business Plan – JSS3 Business Studies Lesson Note (First Term)

A business plan is a written document that describes the objectives of a business and the strategies for achieving them.

Behavioural objectives

By the end of the lesson, students should be able to:

1. define a business plan;
2. state the characteristics of a good business plan;
3. state the uses of a business plan;
4. list the procedures for drawing a simple single business plan;
5. say what each part of a simple business plan contains.

What is a business plan?

A business plan is a written guide that shows what a business wants to achieve and how it will achieve it.

• Road map: it gives the direction of the business, like a map for a journey.
• Background information: it contains the details about the business venture.
• Objectives: it states what the owner wants the business to achieve.
• Strategies: it states the methods the owner will use to reach the objectives.

What is a simple single business plan?

A simple single business plan is a short business plan for one business idea, written under a few main headings.

• Simple: it uses plain language and only the main headings.
• Single: it covers one business, product or service, such as a bakery or a tailoring shop.
• Used by: small business owners and students starting a small enterprise.

What are the characteristics of a business plan?

A good business plan is clear, reasonable, measurable, time-bound and written.

1. Clear: it states plainly the objectives to be achieved.
2. Reasonable and achievable: the owner can really carry it out with the resources available.
3. Measurable: it makes it easy to tell whether the business is growing or not.
4. Time-bound: it states how long it will take to achieve each objective.
5. In written form: it is easy to refer to later.

What are the uses of a business plan?

A business plan is used to guide the business, help research, inform employees, set rules and assure investors.

1. Guide: it acts as a guide to the business and its operations.
2. Research: it helps the entrepreneur to study the business they want to pursue.
3. Staff direction: it helps employees to know the objectives of the business, so that they can work towards them.
4. Policy: it helps to develop the policy or rules for the business.
5. Investor confidence: it helps investors to see how accountable the management is and the structure put in place.

What are the procedures for drawing a simple single business plan?

There are seven procedures: background, market research, marketing, production, organisation, finance and action plan.

1. Background/preamble: the product or service, its name, logo, vision and goals.
2. Market research: find out customers’ wants and needs, pricing, and competitors in the market.
3. Marketing: creating awareness for the goods.
4. Production: the method of production and quality control.
5. Organisation/management: showing the number of people who will be employed and their duties.
6. Finance: estimating the amount needed to start the business, its source, and how it is to be spent.
7. Action plan: a list of the tasks to be done, who will do each one and when.

What does each part of the plan contain?

The table shows each part of a plan with a sample entry for a small bakery.

Evaluation

1. What is a business plan?
2. State two uses of a business plan.
3. State three characteristics of a good business plan.
4. List the seven procedures for drawing a simple single business plan.
5. What is written under the finance part of a business plan?

Assignment

Choose a small business you could start, such as selling snacks or sewing. Write a simple single business plan for it using the seven headings in this note.

Reading: WABP Business Studies Book 3, pages 54 to 63.