What I may already know: • Planning means having goals that need to be achieved.
Learning Intentions
In this chapter, I will learn: • The importance of planning in business. • The purpose of a mission statement. • The information included in a business plan. • How to create a business plan for a new or existing product or service. • How to prepare and analyse a cash flow forecast.
Key Words: Mission statement Business plan Cash flow
Cash flow forecast Debtors Creditors
Working capital Liquidity
WHY IS PLANNING IMPORTANT?
Just as individuals have plans, so too do businesses. By making plans, a business can focus on what it wants to achieve and how to achieve it.
A business may make plans to:
• Become a market leader. • Sell to the global market. • Tackle a social cause. • Protect the environment. • Provide a service to the local community.
