Business Planning

Business Plans

A business plan is a written document that outlines:

• What the business aims to achieve
• How it will achieve it
• What resources it needs
• How success will be measured

It’s essential for clarity, control, and funding.

Key Functions

• Sets goals and strategies – Defines targets and how to achieve them.
• Secures funding – Shows investors or banks that the business is viable.
• Assesses market potential – Analyses demand, target customers, and competitors.
• Identifies risks and challenges – Plans solutions for potential problems.
• Provides a roadmap – Guides operations and decision-making at all stages.

Stages of Importance

Stage	Purpose	Key Sections
Start-up	Clarify idea, confirm demand, attract funding	Executive Summary, Market Analysis, BMC, Financial Plan
Growth	Guide expansion, manage investment	Sales & Marketing, Financial Plan
Maturity	Maintain efficiency and profitability	Operational Plan, Production Plan, Financial Plan

Main Sections of a Business Plan

• Executive Summary – Overview of goals, market, and finances.
• Market Analysis – Research on target customers and competitors.
• Sales & Marketing Plan – Strategy for attracting and keeping customers.
• Financial Plan – Revenue forecasts, costs, and profit projections.
• Production Plan – How goods or services will be made.
• Operational Plan – Day-to-day running of the business.
• Business Model Canvas – One-page visual summary of the business model.

Ethics and Sustainability in Planning

Why They Matter

• Builds trust and brand loyalty – Customers prefer ethical brands.E.g. Kenco’s “Coffee vs Gangs” campaign.
• Attracts investors and talent – ESG investors favour sustainable firms.
• Avoids legal/reputational risks – Compliance from the start reduces problems.
• Supports long-term profitability – Reduces waste, saves resources.

Examples

• Amazon: Investing in electric vehicles & renewable energy for sustainability.
• Unilever: Reducing plastic use and emissions to attract investors and customers.
• Ben & Jerry’s – Includes social and environmental impact goals in its planning. Supports fair trade ingredients and social justice campaigns, which strengthen its ethical brand image.
• Patagonia – Builds sustainability into every part of its plan. Uses recycled materials, repairs old clothes, and donates 1% of sales to environmental causes. This attracts loyal customers who care about the planet.

What Is a Business Model?

A business model shows how a company creates, delivers, and captures value.

Role within a Business Plan

• Explains how the business operates and makes money.
• Helps stakeholders understand the business’s revenue streams and customer value.
• Keeps the enterprise focused and competitive.

Examples of Models

Model	Description	Example
Retail	Buys from suppliers and sells to consumers	Tesco
Manufacturing	Produces goods from raw materials	Dell
Subscription	Customers pay regularly for ongoing access	Spotify
Franchise	Licenses brand and systems to franchisees	Supermac’s
Affiliate	Earns commission for promoting products	TikTok influencers for Gymshark

The Business Model Canvas (BMC)

The Business Model Canvas is a strategic planning tool that gives a clear, one-page overview of how a business creates, delivers, and captures value.It helps entrepreneurs, investors, and managers quickly understand how a business operates and makes money.

It contains 9 key elements, divided into four main areas:

Area	Elements	Description
Infrastructure	Key Partners, Key Activities, Key Resources	How the business runs
Offering	Value Proposition	What the business offers
Customers	Customer Segments, Channels, Customer Relationships	Who the business serves and how
Finances	Revenue Streams, Cost Structure	How the business earns and spends money

Key Partners

These are the external organisations or individuals that help the business operate successfully.They reduce risk, provide resources, or carry out essential activities.

Examples:

• Suppliers (raw materials, ingredients)
• Manufacturers or logistics companies (delivery)
• IT providers or software developers
• Marketing agencies or influencers
• Strategic alliances (e.g. Apple and Foxconn)

Why they matter: Partners allow the business to focus on core strengths while outsourcing specialised tasks.

Key Activities

These are the most important actions a business must do to operate effectively and deliver value.

Examples:

• Production (manufacturing, design, packaging)
• Marketing and sales (advertising campaigns)
• Customer service
• App development (for tech businesses)
• Quality control

Why they matter: They show what the business must do well every day to succeed.

Key Resources

These are the assets the business uses to create and deliver its product or service.

Examples:

• Human – staff skills, management experience
• Physical – buildings, vehicles, equipment
• Intellectual – patents, copyrights, brand name
• Financial – cash reserves, access to credit

Why they matter: Without these, the business cannot create or deliver its value proposition.

Value Proposition

This is the unique benefit or value that makes customers choose the business over competitors.It explains what problem the business solves or what need it satisfies.

Examples:

• Apple: innovative, easy-to-use technology
• All Real Nutrition: Irish-made, plastic-free protein bars
• Vinted: affordable, sustainable fashion
• Ryanair: lowest-cost travel option

Why it matters: It’s the core reason customers buy from you.

Customer Segments

These are the different groups of people or organisations a business serves.Each segment may have different needs, pricing, and communication preferences.

Examples:

• Age groups (teens, adults, seniors)
• Business vs. individual customers
• Premium vs. budget markets

Why they matter: Understanding customer segments ensures products are targeted effectively.

Customer Relationships

This shows how a business interacts with its customers — from first contact to long-term loyalty.

Examples:

• Personalised service (e.g. hair salon)
• Self-service (e.g. online banking)
• Community engagement (e.g. online forums)
• Loyalty schemes (e.g. Tesco Clubcard)
• Customer support (e.g. live chat)

Why they matter: Strong relationships encourage repeat business and brand loyalty.

Channels

Channels describe how products or services reach customers and how communication happens.

Examples:

• Physical stores
• Company website or app
• Social media
• Email newsletters
• Wholesalers or distributors

Why they matter: Channels affect customer convenience and brand visibility.

Revenue Streams

This shows how the business makes money — its sources of income.

Examples:

• Direct sales (shops, e-commerce)
• Subscription fees (Netflix, Spotify)
• Licensing or franchising fees
• Advertising revenue (YouTube, TikTok)
• Commission from sales (Amazon marketplace)

Why they matter: They reveal the sustainability and profitability of the business model.

Cost Structure

These are the major costs the business faces in operating and delivering value.

Examples:

• Rent, utilities, wages
• Marketing and advertising
• Raw materials and inventory
• Technology and maintenance
• Delivery and logistics

Why they matter: Helps determine pricing strategy and profit margins.

Example: Netflix’s Business Model Canvas

Element	Netflix Example
Key Partners	Film studios, internet providers, device manufacturers
Key Activities	Content creation, app development, customer support
Key Resources	Streaming technology, brand, user data
Value Proposition	Unlimited, ad-free entertainment anytime, anywhere
Customer Segments	Global audience, different age and interest groups
Customer Relationships	Personalised recommendations, easy subscriptions
Channels	Website, mobile app, smart TVs
Revenue Streams	Monthly subscriptions, premium tiers
Cost Structure	Content licensing, production, marketing, server costs

Comparing Business Models

Business Model	How Revenue is Generated	How Value is Delivered
Retail	Selling goods at markup	Convenience, choice, loyalty rewards
Manufacturer	Selling products made from raw materials	Innovation, quality, efficiency
Subscription	Monthly/annual fees	Continuous access, flexibility
Franchise	Franchise fees + royalties	Consistent quality, wide availability
Affiliate	Commission on sales via promotion	Trusted recommendations, targeted ads

Digital Technology as a Driver of Change

Internal Change

• Innovation & Product Development – ASOS uses social media to test designs.
• Efficiency & Automation – Amazon uses AI and robots for inventory.
• Data-Driven Decisions – Netflix uses viewing data to plan shows.
• Employee Collaboration – Slack, Notion, and Trello enable teamwork.

External Change

• Changing Consumer Behaviour – Gymshark uses TikTok for feedback.
• Competitive Pressure – Uber forced taxis to digitise.
• Globalisation – Shein uses digital payments to reach new markets.
• Brand Image & Engagement – Ryanair uses humour on social media.

Technology-Driven Business Models

Model	Example	Revenue Generation	Access & Cost	Scalability & Growth	Engagement
Marketplace	Vinted, Airbnb	Fees from transactions	Free/low-cost	Grows as users join	Reviews & ratings build trust
Subscription	Netflix, Spotify	Recurring payments	Paid access	Global scale, low cost per user	Personalised recommendations
Crowdfunding	GoFundMe, Kickstarter	Public donations	Free to browse	Viral potential	Storytelling builds community
Advertising-Supported	YouTube, TikTok	Ads & impressions	Free to use	Extremely scalable	Algorithms drive engagement

Comparing Tech vs Non-Tech Models

Traditional	Technology-Driven
Physical store hours	24/7 global access
Local customer base	Worldwide reach
Slower feedback	Real-time analytics
High costs to scale	Low-cost scalability
Fixed marketing	Personalised ads & data use

Learning objectives