Item A: GlowGrid plans to sell energy-saving lamps online. Its draft business plan forecasts first-year sales revenue of £180,000, total costs of £154,000 and profit of £26,000. GlowGrid is seeking a £60,000 bank loan and has identified its target market, marketing mix, warehouse location and cash-flow forecast.
State one section included in GlowGrid's business plan.
The sales forecast assumes that 6,000 lamps will be sold, although GlowGrid's market research involved only 30 respondents.
Outline one limitation of GlowGrid's sales forecast.
GlowGrid is considering two approaches:
Option 1: Apply for the bank loan now using the current business plan
Option 2: Collect research from a larger sample and revise the plan before applying
Justify which one of these two approaches GlowGrid should choose.
37 exam-style questions on Edexcel GCSE Business 1.4 Making the business effective, covering 1.4.1a Limited liability, 1.4.1b Types of business ownership for start-ups, 1.4.1c Franchising, 1.4.2a Factors influencing business location, 1.4.2b Impact of the internet on location, 1.4.3a What the marketing mix is, 1.4.3b Balancing the marketing mix, 1.4.3c Impact of technology on the marketing mix, 1.4.4a The role and importance of a business plan, and 1.4.4b The purpose of planning business activity. Each one has a worked solution and a mark scheme showing where the marks go.