Research Task 3

L4 Creative Enterprise

Unit 1: The Creative Entrepreneur

Research Tasks

Task 3: Business Plans and Models

•What is a business plan?

A business plan is the backbone and foundations of any business with the objective to succeed their ambitions. Without one, the business will be highly likely to go off track, unorganised and near impossible to manage. Creating a business plan usually consists of 8 sectors will include: executive summary, company description, market analysis, management, products/services, marketing plan, financial plan and appendices. This ensures that all essential factors of a business are crystal clear, and that their aims and objectives are easily identifiable and can be worked on immediately. Typically, the business plan will consist of a SWOT/PESTLE analysis, mission statement and competitor analysis.

•What is a business model?

The business model is relatively similar to the business plan, except it explains in further detail how these aspirations will become reality in order to make profit. The business model particularly focusses on where finance will come from, how cash flow will remain sustainable and product portfolio analysis. Once again, without a business model, the business will struggle to identify exactly how they are able to finance and prepare for their desired aims.

•What is meant by the term 'sustainable business model'?

Potentially, the difference between a good business and a great business, is the difference between having a business model and having a sustainable business model. A sustainable business model can be broken down into three important factors: environmental, financial and social. Almost similar to a PESTLE analysis, a sustainable model will look at external factors which may affect the direction and success of the business in a long-term strategy. Sustainability is all about how strategy how perform long-term success. Sustainable finance is a huge aspect of a growing firm, especially with non-current assets such as buildings, machinery and vehicles which may need to be leased. If this is the case, the cash flow and accounting of the business needs to be in top form which will be described and obtained within the sustainable business model. Environmental sustainability is a major factor of most businesses in the 21st century, as we are filtering out mass pollution and plastic use within major businesses, many firms have a stronger corporate social responsibility. Therefore, having environmentally sustainable resources is a huge highlight for a sustainable business model. Finally, being socially sustainable ensures that your business is able to run for a long term strategy. Does the product/service suit current social needs and will this continue to serve this over the next 10+ years. If the product or service is socially outdated, it may not attract the market it once would have obtained beforehand.

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