Business Plan

BSC Kragujevac

Trainer: Ivan Mihailovic

Kragujevac, 13.10.2008.

Agenda

• I Day– Introduction

• II Day– Marketing Plan

• III Day- Marketing Plan

• IV Day- Management Plan

• V Day– Financial Plan

About the trainer Director of Centre for Entrepreneurship International Trainer/Consultant. Practical experience in private sector:

• ABC – education centre• World of imagination - playground

Email: office@czp.org.rs , ivpriv@gmail.com

Business Plan writing

Purpose:1. Business idea estimation

2. Tool for new financial sources

Basic elements of each Business Plan:

1. Cover Page

• Business Name,• Business address,• Telephone,• Owner• Date

2. Content

• List of all parts

• Annexes

• Reader oriented

3. Executive Summary

• Business type - activity

• Market potentials / competition analysis

• Competitive advantages

• Financial projection (investments, purpose i repayment plan)

Read before you write. This segment requires the following:

4. Marketing Plan

• There is a need at the market

• Knowing the costumers

• Possibility to make profit

This part of BP should answer the following :

4. Marketing Plan

• Analyze the market and the competition

• Choose your target market

• Determine your marketing strategy

• Who are your costumers (segmentation)? • Which customers or customer groups are particularly

attractive• financially? • How can you differentiate yourself from the competition

(positioning )?• What market share do you expect to achieve ?

Samples of deferent target markets

4. Marketing Plan

• Clear description of product /services

Quality, color, size, packaging, usage, ...

• Choose your market strategy

4. Marketing PlanProduct/Service

• How much is costumer ready to pay ?

Basic criteria

• Cost coverage +...

4. Marketing Planselling price

• Variable costsCosts dependant on production/sales

• Fixed costs

Not dependant on production/ sales

4. Marketing PlanCost analyse

“BEP” is a number of units need to be sold

in order to cover all costs

BEP =

4. Marketing PlanBreak even point

Fixed cost

Contribution Margin

Contribution margin is dependant on

competitors! •Step 1: Identifyy three biggest competitors •Step 2: Compare your company to

competitiors and make the priority list •Step 3: State four actions

4. Marketing PlanCompetition analyse

What is the best way to make customers

choose your product?•Focus-on-target strategy •General strategyy •Combined strategy

4. Marketing Planpromotional strategy

Distribution is of utmost importance.•Wholesale •Retail•Sales agents•Sub-contractors•Others

4. Marketing Plan distribution method

Combination of the four marketing factors•Product•Price•Place•Promotion

4. Marketing Planmarketing MIX – 4P

Selection of people, requested competences,

delegation of duties, salary determination

5. Management Planhuman resources management:

Name Requested competences

Description of duties

Proposed salary

 

Planning production is important for:•Lower production or service provision time•Increased flexibility •Improved quality of products/services•Higher productivity and costs reduction

 

5. Management Planproduction programme:

5. Management Planproduction programme:

Description of existing

equipment

Value Needed equipment

Value and financial sources

It is necessary to make analysis of: •Start-up costs •Profit and loss statement – business profitability•Cash flow – income generation ability•Balance sheet – ‘‘medical record of a company’’•Financial indicators – financial position

and business profitability

 

6. Financial Plan

Profit and loss statement indicates

the level of a company’s profitability!

6. Financial Plan Profit and loss statement:

Sales by months

1 2 3 .. . 12 Total

Product 1

quantity x price

Product 2

quantity x price

Total:

Profit and loss statement indicates

the level of a company’s profitability!

6. Financial Plan Profit and loss statement:

Costs 1 2 3 .. . 12 Total

Staff

Overhead costs

Interests

TotalProfit/Loss:

Balance sheet is composed of:

ASSETS

(possessions of a company)

and

LIABILITIES

(value of company’s possessions)

6. Financial Plan balance sheet:

Financial ability of a company.

How much money we possess to invest or repaying debts.

6. Financial Plan Cash flow:

Cash flow statement 1 2 3 .. 12 Total

Cash on hand

Sales generated cash

Other receipts

Total receipts in cash:

6. Financial plan cash flow:

Cash flow statement 1 2 3 .. 12 Total

Cash outflow based on ongoing activities

Credit repayment + interest

Total cash outflow:

Receipts-Outflow (cash at the end of a month)