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Business Studies for Secondary Schools
2. In your community, two small Furthermore, she did not track her
businesses sell similar products. earnings, so she does not know whether
One that is well-planned has been she is making a profit or not. Her friend
operating successfully for years, Neema, who also started a business
while the other, unplanned one after writing a complete business plan,
FOR ONLINE READING ONLY
closed down six months after suggests that she should do the same.
its establishment. You decide Questions:
to investigate what made the 1. What mistakes did Tatu make in her
difference. planning process before starting the
(a) What factors do you think business?
contributed to the success of 2. What were Neema’s success factors
the well-planned business? in her business?
(b) If you were to advise a business
that failed, what steps would 3. Which key components of a
business plan do you think were
you suggest it to take before missing in Tatu’s plan that Neema
reopening? advised her to include in her
business plan?
Components of a business plan 4. Why is it important to organise
a business plan into structured
Activity 4.3 sections instead of just listing
ideas?
Read the following scenario and
answer the questions that follow: In preparing a business plan, it is important
Tatu is a Form Three student who wants to make sure that it is simple, clear, and
to start selling fruit juice after school. precise to all users, such as lenders and
She writes down her ideas and thinks investors. It should be persuasive and free
about what flavours she will sell. She from spelling and any grammatical or
even comes up with a lovely business numerical errors. In all circumstances, the
name and logo. Excited, she starts active rather than the passive voice should
making and selling the juice. However, be used in the document. For example,
after two weeks, she faces unexpected instead of stating, “A new marketing
problems as a result of her failure campaign will be launched soon,” state,
to calculate the costs of ingredients “I will launch a new marketing campaign
properly. She also did not think about next month.” There are different ways of
how to attract new customers, so after preparing a business plan depending on
a few days, people stopped buying her the intended users. The following are the
products as they used to. basic components of a business plan:
Student’s Book Form Three 70
