Developing a Developing a Business PlanBusiness Plan

Aim of Session

To provide an opportunity for participants to be exposed to strategic business development skills which will assist in the preparation of an effective business plan

What is a Business Plan?What is a Business Plan?

The written document that details a proposed or existing venture. It seeks to capture the vision, current status, expected needs, defined markets, and projected results of the business. A business plan "tells the entrepreneur's story" by describing the purpose, basis, reason and future of the venture.

Features of a Good Business Plan

Clear

Error Free

Concise

Realistic

Convincing

Sequential (systematic)

Elements of a Business PlanElements of a Business Plan

• Executive SummaryExecutive Summary

Brief summary of all the aspects of the Brief summary of all the aspects of the business planbusiness plan

- History or background of the business- History or background of the business

- Mission Statement - Mission Statement

-Goals and Objectives Goals and Objectives

-Keys to successKeys to success

-Financing requirementsFinancing requirements

• Product/Service Description:Product/Service Description:

What are you offeringWhat are you offering

• Market Analysis:Market Analysis:

Who are you selling to or Who will buy Who are you selling to or Who will buy your productyour product

Elements of a Business Elements of a Business PlanPlan

Elements of a Business Elements of a Business PlanPlan

• Marketing Strategy:Marketing Strategy:

How will you get your products and How will you get your products and services to the target marketservices to the target market

• Operations:Operations:

How will the business be operated How will the business be operated

• Organization:Organization:

Who will manage the business operationsWho will manage the business operations

Elements of a Business Elements of a Business PlanPlan

• Financial ProjectionsFinancial Projections

What are the costs associated with producing the product and the expected returns on the investment

What is a Mission StatementWhat is a Mission Statement

Is a declaration of what the business aspires to be

e.g. - the reason for existing- clarification of who it serves- what it hopes to achieve- an inspiration to the people who contribute to its success

OUR MISSION

To be a dynamic, international, multifaceted investment institution that operates in a caring, loving and fun environment where employees

are creative and content.

Ensuring customer satisfaction through optimum use of technology and continuous improvement on a path of excellence where solidity, ethics, credibility and openness are hallmarks of our

existence as experts in all aspects of our operation.

Setting Business Goals

What are Goals?

A goal is a statement that:– clearly describes actions to be taken or

– tasks to be accomplished by a company, a department or an individual.

A business will have a number of goals, each

describing a desired future condition toward which efforts are directed.

Characteristics of a Characteristics of a Business GoalBusiness Goal

Derived from the mission statementTask-orientedFuturisticSpecificChallenging

Examples of Business Examples of Business GoalsGoals

To maximize profitability by 50% in the next 5 years

What are Objectives?

Setting Business Objectives

An objective is a statement, derived from a business goal. This is the planned action that will be aimed at or states how you’ll achieve your Goal.

S - specificM - measurableA - accurateR - realisticT - timely/time bound

e.g. Increase promotion budget 20%

Setting Business ObjectivesSetting Business Objectives

Analysis of the Market Analysis of the Market • industry Analysis: Growth pattern, size industry Analysis: Growth pattern, size

• Market definition – age, sex etc.Market definition – age, sex etc.

• Customer Profile and NeedsCustomer Profile and Needs

Demographics, psychographics, age etc.Demographics, psychographics, age etc.

• Competition – major player, who shares Competition – major player, who shares market with youmarket with you

Marketing Strategy Marketing Strategy

• Product StrategyProduct Strategy

• Pricing Pricing

• Distribution Distribution

• Promotion and AdvertisementPromotion and Advertisement

Operations Operations

oo              LocationLocation

oo              CapacityCapacity

oo              Procurement (transportation, storage, etc.)Procurement (transportation, storage, etc.)

oo              Production Method (Process Flow)Production Method (Process Flow)

oo              Quality ControlQuality Control

Organization Organization

• Organization StructureOrganization Structure

• Management StructureManagement Structure

• Skill Requirement Skill Requirement

•  Key PersonnelKey Personnel

• Use of Technology Use of Technology

• Training requirement Training requirement

Financial ProjectionsFinancial Projections

•    Financial Strategy – How Financial Strategy – How

• Projected Cash Flow – Monthly for first 12 Projected Cash Flow – Monthly for first 12 monthsmonths

• Profit & Loss StatementProfit & Loss Statement

• Projected Balance SheetProjected Balance Sheet

Action PlanAction Plan

Activities cost TimelineBuild facility 500 November

THANK YOU!THANK YOU!

Jamaica Business Development Centre14 Camp Road, Kingston 4

Telephone: 928-5161, Fax: 928-8626

Email: info@jbdc.net

Website: www.jbdc.net