Module Name Week 1 Day 1 LEARNING OUTCOME 1 1
Welcome everybody
Level 5: Lesson 1
Module Name: Business Plan & Analysis
Block 5
Business Plan & Analysis Week 1 Lesson 1 LEARNING OUTCOME 1
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Week 1: Introduction to a Business Plan
“I’m I’ESHA,
your
Internet
Education
Support
Honing
Assistant
So, if you see
me, expect to
be embraced
with tips,
challenge and
new
knowledge”

Hello everybody
Business plan & analysis Week 1 Lesson 1
LEARNING OUTCOME 1
3
Two things will happen in each lesson:
1. You will learn something new.
2. You will be challenged.
So pay attention, listen to the lecturer
and embrace new knowledge.

THOUGHT PROVOKING QUESTION
Business Plan & Analysis Week 1 Lesson 1 LEARNING OUTCOME 1 4
WHAT KIND OF A BUSINESS IS THIS?
SO WHO AM I? WHO IS YOUR LECTURER?
Business plan & analysis Week 1 Lesson 1 LEARNING OUTCOME 1 5
SIMPLE CLASS ETIQUITE
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LEARNING OUTCOME 1
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Attend all classes on
time. (The University’s
Lateness and Attendance
Policy applies.)
Keep your mobiles
phones on silent mode
or switch them off.
Do not interrupt
colleagues whilst they
are contributing in class.
Do not “attack the
person” – “debate the
idea”, instead.
Treat your colleagues
with respect.
No food of any kind in
class, please.

WHY SOME FAIL MODULE ASSESSMENT
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They;
Procrastinate – leave task undone till last
minute.
Manage time poorly.
Are distracted during lectures – understand
little about Module requirement.
Do not attend lectures regularly or are mostly
late.
Plagiarise, Copying, Contract cheating, failing
to reference.
Do not make use of formative submission tool.
WHAT IS THIS ASSIGNMENT ABOUT??
IN ONE SENTENCE: “YOU WILL TRY TO SECURE
FUNDING FROM AN INVESTOR FOR YOUR NEW
MICRO BUSINESS IDEA IN THE FORM OF A
BUSINESS PLAN”.
Why you need funding? And for what purpose? is
up to you. You will do this in the form of a business
plan and presentation to the investor. Simple!
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IN BRIEF KEY ASSESSMENTS AND DATES:
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Formative 1: WK 1 – LO1
Formative 2: WK 2 LO1, 2
Formative 3: WK 3 LO2, 3
Formative 4: WK 4 LO3, 4
Presentation: Date:
Week commencing
30/01/23 (10
minutes and 500
words)
Summative
assessment? Date:
06/02/23 (2000
words)

MODULE ASSESSMENT
The Module is 100% Coursework
80% Business Plan
20% Presentation (Slides and individual feedback form as evidence)
Students will produce a 2000 word report based on a Business plan from your
Micro business idea. A 500 word PowerPoint will follow (5 slides in total) that you
will use for your 10 minute presentation.
In addition:
PowerPoint Slides
Scheme of work
Resources, Business plan template and other key documents
All accessed via Moodle
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LEARNING OUTCOME 1 10

LEARNING OUTCOMES:
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LO1 Evaluate a business idea and prepare a business strategy and
competitive analysis for your business
LO2 Analyse and prepare a financial strategy for your plan taking into account
the business risks you may encounter.
LO3 Critically review your business plan in the role of a potential investor.
LO4 Propose recommendations that would strengthen your business plan to
achieve the future outcomes.

Please Note: in order to pass this module, all four outcomes must be passed.
Attendance is crucial
WEEK 1 LO1
WEEK 2 LO2
WEEK 3 LO2 AND LO3
WEEK 4 LO3 AND LO4

MODULE LEAD – KEY SKILLS GAINED FROM THIS MODULE &
EXPECTATIONS: REAL LIFE OUTCOMES
Importantly the key skills you will gain from this module and can take with you in
real life are:
Business communication skills
Time management skills
Presentation Skills
Developing business ideas and competitive analysis.
Business strategy, real world application
Understanding and evaluating key financial concepts
By the end of it, Learners will have core real life skills that will enable them to
engage in boardroom meetings with key stakeholders and with financial
institutions.
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MODULE EXPECTATIONS:
My main expectations for you is simple: You will develop a Business plan using your
main points, rather than making generalised multiple generic points. So work from
your main point, reference it, apply real world application (real world examples) then
apply it back to your micro business being critical (positive or negative), think about
the implications towards costs, sales, market share and profit. Ultimately how does it
link back to your primary objective, which is to secure funding from a potential
investor. I would rather you make a few points and develop these, then a list of
descriptive points in a business plan.
IT WILL BE INTENSE, TIME MANAGEMENT IS KEY, GOOD LUCK!!
“THE HIGH IS WORTH THE PAIN” – MR A GREWAL (RAVI)
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LESSON 1, LEARNING OUTCOME 1:– Evaluate a business idea through initial
business plan preparations.
SESSION OBJECTIVES:
By the end of this lesson students should be able to understand:
Micro business
Aims and objectives
Legal Structures
Business Plan
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LETS START THE LESSON!!
Business planning is crucial any businesses survival for the long-term
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“Research means that you don’t know but are willing to find out”
(
Charles F. Kettering n.d).
DISCUSSION POINT: What do you make of these quotes?
STARTER ACTIVITY 10 MINS
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So what is a Business Plan and what is it used for?
Business Plan examples
For investment purposes
For business expansion To access funding
Re-evaluate business
performance / Goals /
Objectives
External stakeholders

MICRO BUSINESS DEFINITION
In 2015 office of UK Government statistics stated 76% of all businesses in UK are owned
and operated by single person. Being self employed has seen an increase in the past ten
years and in UK is one of the growth sectors. (The company warehouse 2015).
According UK Companies House, the parameters set that distinguish a micro business is
quite clear.
1. Must have no more the 10 employees.
2. The turnover a micro business generates annually must not exceed £632,000.
3. Total value in assets in a micro business must not exceed £316,00.
It is with these parameters your Micro business idea will be set on.
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Micro Business Ideas
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Car wash / detailing
Car Scratch repairer
Pet walking /
grooming
Translator and proof
reader services
Landscaping
Cleaning Services
DIY Handyman
Electrician / Plumber
Fitness / Help Guru
/ Trainer
Wedding Planner
Hairdresser
Makeup artist
Party Planner
Party Wedding
stationary
Caterer

Factors to consider when setting up a micro-business
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Capability and core competencies
Time constraints
Financial constraints
Potential stakeholder influences
Access to physical resources
Availability of IT
Environmental influences
Internal risks
External risks

LEGAL STRUCTURES
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Sole trader – One person owner ship, unlimited liability, subject to income tax
Partnership – No limit on number of partners in UK except Scotland, unlimited
liability, subject to income tax
LLP Partnership – No limit on number of partners in UK except Scotland, limited
liability, subject to income tax
Private Limited Company (Ltd) – Privately owned by individuals, limited liability,
subject to corporation tax
Public limited company (PLC) Publicly owned through share ownership traded on
the stock exchange, limited liability, subject to corporation tax.

Liability and Tax implications
Un limited liability – The person or individual is responsible for all debts incurred in the
business. Personal assets can be taken away, home, car depending on the debt size.
Limited Liability – The legal entity responsible for all debts incurred in the business, is the business.
The person or individual is not liable, personal assets cannot be taken away.
Income tax rates as of 2022 (Gov.UK)
. £0 – 12571 = Tax is 0%
£12571 – £50,270 = Tax is 20%
£50,271 – £150,000 = Tax is 40%
£ 150,001 plus = Tax is 45%
Corporation Tax rates as of 2022 (Gov.UK) – less than £300,000 = Tax is 19%
over £300,000 – Tax is 30%
Corporation Tax rates as of 2023 (Gov.Uk) Less than £50,000 = Tax is 19%
£50,001 – £250,000 = some tax relief (Not notified yet)
£250,001 and over = Tax is 25%
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Break 15 minutes / PART 2
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LEGAL STRUCTURES ADVATANGES AND DISADVANTAGES

LEGAL
STRUCTURE
ADVANTAGES DISADVANTAGES
SOLE TRADER Individual makes all decisions, Privacy as a business
do not need to declare accounts on companies house
for everyone to see. All profits belong to the
individual. Setting up is easy process, taking profits
for personal use to
Limited access to finance and raise capital.
Poor work-life balance. Unlimited liability, all
debts belong to the person. Tax can work out
expensive the more successful you are.
PARTNERSHIP Decisions and debts can be shared. Expertise,
experience can be shared. Better work life balance.
Setting up easy process, deed of partnerships.
Decision making can lead to conflicts.
Unlimited liability. Profits are shared. Tax
implications on how successful you are. Future
selling complications.
LLP
PARTNERSHIP
All of the above and limited liability Except unlimited liability, all of the above plus
accounts are public
PRIVATE
LIMITED
COMPANY
(LTD)
Tax efficiency in the long run saving you more money.
Pay less (NIC) national insurance contributions
through dividend payments. Limited liability. Raise
funds through selling private shares, bringing in
members. Easier to raise funds. LTD gives you more
credibility, as suppliers and banks prefer this.
Harder to set up, increased taxation, financial
and legal obligations. Annual Accounts need
to be done. Accounts can be seen publicly via
companies house, with fees attached. Potential
competitors can see this. Depending on
members, decisions may take longer.
PUBLIC LIMITED
COMPANY (PLC)
Access to finance, economies of scale, Raise capital
easier. Limited liability. Growth opportunities, through
debenture issues. Prestige
Susceptible to acquisitions, majority share
ownership like Twitter and Elon. More
regulations to follow. £50 share capital
required to set up a PLC

 

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STAKEHOLDERS – THAT MIGHT IMPACT YOUR MICRO BUSINESS
INTERNAL STAKEHOLDER
Managers (decision makers and bosses)
Employees (other employees that report to
managers)
Owner (overall responsibility for the business)
EXTERNAL STAKEHOLDER
Suppliers (Suppliers or products and resources)
Competitors (person or organisation
competing against)
Debtors (Person or organisation that owes
money to the business)
Creditors (Person or organisation that the
business owes money to)
Customers (People purchasing/using goods or
service from the business)
Government agencies and departments (Local,
national and international)
Discussion Point: Different stakeholders have different
objectives. The interests of different stakeholder
groups can conflict, please give examples?

IMPACT OF STAKEHOLDER INFLUENCE
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Stakeholder Analysis/’Mapping’ (Mendelow 1991)
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Stakeholder Analysis is the technique used to identify the key
stakeholders who have to be won over
.
Benefits of stakeholder
analysis include:
Use the opinions of the
most powerful
stakeholders
Identify and communicate
with stakeholders
Early stakeholder reaction
identified
Discussion point: Identify your
stakeholders who will have the most
influence on your microbusiness idea
and why and present it to the class?

AIMS AND OBJECTIVES / REASON FOR FUNDING
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Clarity of vision for the business – Aims and Objectives can change due to market
forces
(External factors created by the economy for the demand and availability of
products and services which influence costs, market share etc
).
This helps a business to focus on its direction by providing clarity.
Aim: can be what direction the business wants to go to in the future for survival ,
increased sales and growth etc.
Objectives: can be the steps taken to meet the requirements of the Aim. This is where
funding maybe required. Maybe on property, machines, vehicles or other assets. It
could be to pay for a service.
Other objectives can be upskilling ones self, employing the right people.
Discussion point think about the Aims and Objectives required for your Micro
business Idea?

CORE COMPETENCIES AND CAPABILITIES
Successful businesses will have a unique set of capabilities that set them
apart from their competitors – known as core competencies.
These define what makes a business so successful and a leader in the field.
From this Core USP can be Identified, applied and give your business a
competitive edge.
FOR EXAMPLE: Apple (their design capabilities) and Google (their search
engine capabilities).
Discussion Point: Discuss well known businesses and identify what are
there USP’s. Then discuss what are you key USP’s and Core competencies
for your Micro Business Idea?
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COMPETITIVE ADVANTAGE
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The following are potential competitive advantages to consider. All of these are not equal
because they either are not sustainable or can be easily duplicated by your competitors:
Strong Competitive Advantages
Intellectual property
Agreements with customers or suppliers
Long term contracts
Credible Competitive Advantages
. Control of costs
. Control of prices
. Control of channel
. Location
. World class management
. Expertise
INTERNAL / EXTERNAL RISKS.
A business should be aware of any internal risks in order to plan for them and to be able to reduce the impact to the
business as much as possible. From this contingency plans can be formed. External risks are harder to manage as
they are outside of the businesses control.
Internal Risk examples:
Performance issues – workers not working to a high standard, lack of core knowledge, might impact sales
Dishonesty issues – workers are not trustworthy, pick your team well who will add value.
Technological issues – Availability of IT, Internet speed, Social Media, Website, costs incurred.
Physical resources – need servicing equipment, premises regularly, repairing break, wear or tear, costs increase.
Funding – Lack of finance resources available. Borrowing from friends and family can cause conflicts.
External Risk examples:
Economic events – energy cost rises, interest rate rises, Inflation, Disposable income, economic growth
Political factors – change in government or government policy like tax, legislation, minimum wage.

Natural factors – natural disasters around the world, Covid 19, War in Ukraine possible supply chain issues.
Discussion Point: Why would minimum wage impact a business?

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SWOT LINKED TO PESTLE ANALYSIS (Risks linked to Weaknesses & Threats)
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A SWOT analysis is used to
identify and analyse the
internal Strengths and
Weaknesses of an
organization, as well as the
external Opportunities and
Threats created by the
external business and
economic environment—so
from Strengths and
Weaknesses, Opportunities
and Threats we get SWOT.
But linked to Opportunities
and Threats we can start to
incorporate PESTLE factors.

SWOT ANALYSIS
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PESTLE FACTORS EXPLAINED:
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Break 30 – 45 minutes / PART 3
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“Two boxers in a ring. One boxer knocks the other one out and wins the fight.
But no man throws a punch how?”

DISCUSSION POINT, OVER TO YOU…………..
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Enhance your
presentation skills: In
groups or in pairs think
of PESTLE factors that
will impact your micro
business linking are they
opportunities or are they
threat for each factor.
Present it back to the
class. You have 5 minutes
KEY SKILL TO FOCUS ON IS TIME
MANAGEMENT

ADDITONAL INTERNAL AND EXTERNAL FACTORS.
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INTERNAL STRENGHS
Advantages of
proposition?
Capabilities?
Competitive advantages?
USP’s (unique selling
points)?
Resources, Assets,
People?
Experience, knowledge,
data?
Financial reserves, likely
returns?
Marketing – reach,
distribution, awareness?
Innovative aspects?
Location and
geographical?
Price, value, quality?
Accreditations,
qualifications,
certifications?
Processes, systems, IT,
communications?
Cultural, attitudinal,
behavioural?
Management cover,
succession?
INTERNAL WEAKNESSES
Disadvantages of
proposition?
Gaps in capabilities?
Lack of competitive
strength?
Reputation, presence and
reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and
pressures?
Cash flow, start-up cashdrain?
Continuity, supply chain
robustness?
Effects on core activities,
distraction?
Reliability of data, plan
predictability?
Morale, commitment,
leadership?
Accreditations, etc?
Processes and systems,
etc?
Management cover,
succession?
EXTERNAL
OPPORTUNITIES
Market developments?
Competitors’ vulnerabilities?
Industry or lifestyle trends?
Technology development and
innovation?
Global influences?
New markets, vertical,
horizontal?
Niche target markets?
Geographical, export, import?
New USP’s?
Tactics – surprise, major
contracts, etc?
Business and product
development?
Information and research?
Partnerships, agencies,
distribution?
Volumes, production,
economies?
Seasonal, weather, fashion
influences?
EXTERNAL THREATS
Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions –
various?
Market demand?
New technologies,
services, ideas?
Vital contracts and
partners?
Sustaining internal
capabilities?
Tax implications?
Insurmountable
weaknesses?
Loss of key staff?
Sustainable financial
backing?
Economy – home,
abroad?
Seasonality, weather
effects?

THE BUSINESS PLAN STRUCTURE
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1. Executive Summary
2. Company Overview
1. Legal structure
2. Business Description
3. Business Aims and Objectives
3. Products and Service offerings
1. Types of product and service offerings
2. Core USPs
4. Competitive and Market Analysis / Risks
1. Market size
2. Market Segmentation
3. SWOT / PESTLE analysis
4. Porters Model
5. Business strategy / Marketing and Sales plan
1. Marketing Mix
2. Growth Strategy
6. Operating Plan
1. Physical Location
2. Physical resources required
3. Supplier / Direct Materials required
4. Breakeven analysis
7. Financial Plan
1. Projected Income statement
2. Projected Balance sheet
3. Projected Cashflow statement
4. Ratio Analysis
5. Conclusion
8. Recommendations
1. Conclusion
2. Critical Review (From presentation feedback)
3. Recommendations (For – potential growth, long term
survivability, strengthen profitability to achieve future
outcomes (Linked back to business aims and objectives).
9. References
10. Appendix
Appendix 1 – Business Idea / USP
Appendix 2 – Business strategy / Marketing mix
Appendix 3 – Competitor analysis
Appendix 4 – Key Projected Financials
Appendix 5 – How much investment is needed and why?
Appendix 6 –
Individual Feedback form attached
LESSON 1, LEARNING OUTCOME 1:– Evaluate a business idea through initial business plan preparations. :
SESSION OBJECTIVES:
By the end of this session students should be
able to understand:
Micro business
Aims and objectives
Legal Structures
Business Plans
In-class activity and discussions
THIS IS WHAT YOU HAVE COVERED IN TODAYS LESSON.
ANY QUESTION? SO FAR SO GOOD?
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CORE READING / REFERENCES: (You may need to have a session already open in EBSCO Moodle for this link to work)
1.Carlson, E. and Koch, J. (2018) Building a Successful Social Venture: A Guide for Social Entrepreneurs. Oakland: Berrett-Koehler Publishers.
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1811622&site=eds-live
2.Colwell, K. (2019) Starting a business quickstart guide: the simplified beginner’s guide to launching a successful small business, turning your vision into reality,
and achieving your entrepreneurial dream. Albany: ClydeBank Media LLC.
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=2176181&site=eds-live
3.Eklund, J.C. and Minor, M. J. (2021) ‘Keep your eye on the ball or on the field? Exploring the performance implications ofexecutive strategic attention’,
Academy of Management Journal, 64(6), pp. 1685–1713.
4.Estes, J. (2009) Smart Green: How to Implement Sustainable Business Practices in Any Industry- and Make Money. Hoboken: Wiley.
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=271570&site=eds-live
5.Griffin, M.P. (2015) how to write a business plan: a step-by-step guide to creating a plan that gets results. 5th edn. New York: American Management
Association.
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1520878&site=eds-live
6.Hove, N.V. and Regeer, H. (2021) ‘Integrated business planning: a new narrative for an old process’, Foresight: The International Journal of Applied
Forecasting, 63, pp. 46–52.
7.Jablonski, A. (2017) Business models: strategies, impacts and challenges. New York: Nova Science Publishers, Inc.
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1453423&site=eds-live
8.Matthews, B. (2018) Five P’s to a wow business: an easy-to-understand, easy-to-implement, practical guide to business success. Shippensburg: Sound Wisdom.
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1717325&site=eds-live
9.McKeever, M.P. (2018) How to write a business plan. 14th edn. Berkeley: NOLO.
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1840225&site=eds-live
ADDIONAL REFERENCES:
10.
Andrew L. Friedman and Samantha Miles (2006). Stakeholders : Theory and Practice. [online] EBSCOhost. Oxford: OUP Oxford. Available at:
https://web.s.ebscohost.com/ehost/detail/detail?vid=1&sid=17716991-f071-4906-9247-
15123d8e6423%40redis&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=201128&db=e020mww
11. Boscolo, M., Lehtonen, P., & Pra, A. (2021). Developing bankable business plans. Rome: FAO
12. Ekanem, I. (2017).
Writing a business plan: A practical guide. London: Routledge.
13 Parker, A. (2008) ‘The key to business planning: put it in writing’, GPSolo, 25(7), pp. 22–25.
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NEXT LESSON EXPECTATIONS / FORMATIVE ASSESSMENT PREP.
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Next Lesson:
Sections 4.0 –
5.1 will be
covered
– Market size
– Market segmentation
– Marketing Mix
– Porters Model
FORMATIVE ASSESSMENT PREPARATION – In addition, try to remember the Key buzzwords you have learnt
in this lesson. YOUR 1
ST FORMATIVE IS A GROUP PRESENTATION WK 1 L2.
HOMEWORK – TO WORK ON YOUR BUSINESS PLAN AND APPLY WHAT YOU HAVE LEARNT TODAY IN CLASS.
FORMATIVE ASSESSMENT REQUIREMENTS ARE TO PRODUCE CONTENT FROM 2.0 – 6.4 IN THE BUSINESS
PLAN. YOUR SUMMATIVE PRESENTATION IS ON WEEK 4.
These key buzzwords are crucial for your knowledge and understanding and applying
it to your micro business idea. In preparation for your 1
st FORMATIVE ASSESSMENT.
So work from your main point, reference it, apply real world application (real world examples) then apply it
back to your micro business being critical (positive or negative), think about the implications towards costs,
sales, market share and profit. Ultimately how does it link back to your primary objective, which is to secure
funding from a potential investor. I would rather you make a few points and develop these, then a list of
descriptive points in a business plan.

YOU HAVE BEEN AMAZING, SEE YOU NEXT TIME:
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