shit of a business plan

8/22/2019 shit of a business plan

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BUSINESS PLAN

BUSINESS PLAN


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BUSINESS PLAN

Learning Outcome

At the end of the module, students

should be able to:

understand what is a business plan and reasons forpreparing it

understand the format of a business plan

prepare a business plan and

present a business plan


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BUSINESS PLAN

What Is a Business Plan?A business plan is a written document

which described the proposed business

or project to be undertaken in acomprehensive manner.

It is also known as a working paper,

business proposal, project paper orprospectus.


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BUSINESS PLAN

Reasons For Preparing a Business Plan

1. Opportunity for entrepreneur to assess the business

venture objectively, critically and practically.

2. To study and evaluate the feasibility of the business.

3. To convince venture capitalists, investors and bankers

in order to raise capital and obtain support for the

venture.

4. As a guideline for day-to-day management of thebusiness.

5. To be able to distribute business resources more

effectively.


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BUSINESS PLAN

Readers of the Business Plan:

1. Entrepreneurs

2. Investors

3. Bankers4. Financial Assistance Providers

5. Suppliers

6. Customers7. Employees


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Format Overview

Cover Letter

Cover Page

Table of Contents

Executive Summary

Main Body

Appendices

Introduction

Purpose of business plan

Company background

Owner(s) background

Business location

Marketing plan

Operations plan

Organizational plan

Financial plan

Conclusion or summary


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BUSINESS PLAN

Main Body of Business Plan

Introduction Should clearly state name of company, nature

of business, location, operational date and

prospects of business

Purpose

State the key purpose of preparing plan (e.g.

for financing, business viability assessment,

operational blueprint etc.)


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BUSINESS PLAN

Company Background details regarding the company legal structure (registered name,form address and when registered), main activity & dateoperations start.

Owner Background Details of each individual that is a registered owner of the

business

State relevant qualifications, skills, experience, role in businessand stake or share in business

Location Specify physical location of business premise, operations

premise (if different), advantage of location in helping businessachieve objectives (e.g. proximity to suppliers, target market orusability of space)



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Marketing plan Need to highlight target customers, key products and services & salesforecast

Operations plan Use sales forecast to plan capacity, material, equipment and manpower

needs

Organizational plan Indicate company structure and key talents

Financial plan Amalgamate budget considerations for marketing, operations andorganizational needs into project cost and sources planning as well asprojections of cash, profit and asset & liability position of plannedbusiness



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Writing up the Business Plan

The first step is to have a Business Plan typed and edited.

The second step is to edit the Business Plan.

As a checklist for a complete business plan, entrepreneur

may refer to Table 4.12


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BUSINESS PLANTyping Format

Major Headings

Font type Arial size 12 or Times New Roman size 14, bold

Left justified, mixed case with major words capitalized and bold with one line

above and one line below the heading to separate it from the text.

The Second Heading Level

Italicized with the major words capitalized.

The paragraph is indented five spaces, or half inch on the left.

The Third Heading Level

Indented, italicized and major words capitalized.

Text in Sections Font type Arial size 11 or Times New Roman size 12

The first paragraph is not indented.

Do not space between paragraphs within a section.


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BUSINESS PLANTyping Format

Tables and figures

Professional in appearance and should not be hand drawn. Auto fit to the Windows/contents from the Table menu of MSWord.

Should not split into two pages.

Printing

A laser quality printer. Wide margin, at least one and half inch on the left, one inch on the top,

bottom and right.

Double spacing.

Binding A simple comb or spiral binding

A plastic cover on the front and a thick dark colored paper at the back.


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Table 4.12 Business Plan ChecklistIntroduction

What is the name of the company?

To whom the business plan is prepared?

Who are the owners or partners of the company?

What is the correspondence address?

Purpose

Why the business plan is prepared?

Is the purpose to get financing?

Who asked for the financing?

How much financing is needed? How the financing is going to be utilized?

What help this financing will give to the company?

How are we going to pay back the financing?

Is there any other alternative source of financing to ensure theproposed project is successful?


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Company Background

What is the main product; good or services, the company is planning tooffer?

What are the main characteristics of the product?

Is it a new company or an existing company planning for expansion?

What form the business is?

Why the form is preferable? What are the companys strengths and weaknesses?

How to overcome these weaknesses?

How the proposed project is profitable?

The Industry Is the industry expanding or contracting?

What is the outlook of the industry relative to the others in the economy?

Will the company able to get support from the suppliers?

What are the credit terms the suppliers offer?


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Marketing Plan Products

What products the company is planning to offer?

What is the product concept?

What are the unique or special characteristics of the products?

Are these products potentially to generate more sales?

Market Who are the customers of the company?

What market segment are these customers in?

Where is the target market?

Will customer repurchase the products?

What is the size of the target market?


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Compet i tors Who are the competitors?

Where are the competitors?

Who are the major competitors?

What are the strengths and weakness of the major competitors?

What differences and similarities between our products and

products of the main competitors?

What strategy is planned to overcome competitors?

Will it be new competitors in the market?

How to monitor competitors?

What is the targeted market share?

How to penetrate and maintain the targeted market share?

What strategy to increase the market share?

What strategy to increase the sales?


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Price What price to charge for the products?

Does company has a price range for the products?

How company set the price?

Is the price competitive?

Why customers willing to pay for the price?

Promot ion What promotional strategy to be adopted?

Why the company plans to adopt the strategy?

Do we have budget for these promotional activities.

How much is the promotion budged?

Is the strategy appropriate for our products? How are we going to monitor the effectiveness of these

promotional activities?


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BUSINESS PLAN

Place How are we going to market our products?

What is the most appropriate distribution channel to

be adopted? How are we going to deliver the products?

Does company has any policy regarding on

returned goods?

How to maintain good customer relations?


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BUSINESS PLAN

Organizational Plan

Does company has any policy regarding on recruiting and selecting new staff?

Who are the key members of the management team?

Do owners or partners have relevant experiences to the proposed project?

What experiences do owners or partners of the company have?

Who make decisions in the company?

Who plans for the company? What jobs to be done?

What skills and experiences needed to do these jobs effectively?

Who will do these jobs?

Who are the key staff needed?

Are these staffs work full-time or part-time basis?

How much remuneration for the administrative staff?

Do staffs need training?

What training do they need?

How much the training will cost?

How long the training will take?


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BUSINESS PLAN

Operations Plan

What are the operations processes involve in the

manufacturing or producing of our products?

Does company needs any customized infrastructure

to facilitate the operations processes?

What types and number of machineries and

equipments needed?

How much is the inventory for raw materials, semi-

finished and finished goods are?

How much is the inventory cost?


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BUSINESS PLAN

Financial Plan

How much is the project cost?

How much capital invested by each member or partner?

How much is the total equity compared to the total project

cost?

What is the source of financing? How we plan to pay back the financing?

How the forecasted cash flow look?

Is the proposed project profitable?

What are the uses and sources of funds of the proposed

projects?

How the forecasted financial performances look?

What do financial performances tell us?


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Conclusion

Is the proposed project is viable to proceed?

Have you justified the claims?

Appendix Have you attached every supporting facts ordocuments in the appendix?


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END OF MODULE 7

shit of a business plan

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