BUSINESS PLAN

MODULE 2

WHAT?

WHO?
Entrepreneur

Useful supplement sources like

lawyers, accountants, marketing
consultants and engineers
BUSINESS PLAN

FUNCTIONS
Guide the company operations
Providing the tools necessary for
business growth mission, vision,
objectives, budget etc.
Attract lenders and investors

PURPOSE
Identify nature and context
Presents entrepreneurs approach to
exploiting the opportunity
Identifies factors affecting the ventures
success
Serves as the entrepreneurs tool for
raising capital

INFO NEEDS
Market Info
Operations Info
Financial Info

Market Info
Market size
Market goals
Assess the total market potential

OPERATIONS INFO

FINANCIAL INFO
Expected sales and expense figures
for the first 3 years
Cash flow for the first 3 years
Current balance sheets and pro
forma balance sheets for the next 3
years
Estimates of cash flow
Current balance sheet figures show
the assets, liabilities and investments
by the owner

CONTENTS

Concept
Company
Description
Name
Opportunity
Location and
Product/Service
Telephone/ID
Type
description
of
and
delivery
Business
and
process
Industry
Value
Form of
Proposition

business
Target
market
Principal
and
benefits
Product/service
line
Marketing
Strategy
Number and
name
Competitive
of
Advantage
founders/partne
rs/shareholders
Management
Financial
Current Market
share
Funding
Funds invested
Additional
financing
Proposed terms

DESCRIPTION
Environment and Industry Analysis
PESTLE Company
national Description
and international

Objectives
Mission
Total
Industry
Sales over past 5 yrs
When
and where?
Why?
Detailed
Number
History of new firms entered over
past
want to accomplish?
3 you
yrs Description
What
Objectives
How
Maps
you plan
to that
measure
locate
progress
Growth
Anticipated
Structure and
Ownership
and
success?
potential
New
products
Which
Stage of development
customers
Competitor
Analysis
Achievements
competitors etc
Trends
Firms distinctive competence
Customer
Profile
Nature and
activity
Difference
between your customer
Primary Product
profile
competitors customer
Targetand
Customers
profile
Form of Organisation
Supplier Profile

Steps
Defining the Biz
Situation
Defining target
market,
Where have
Opportunities and
we been?
Threats
of the
history
Considering
Strengths
marketand
place
weaknesses
marketing
Establishing goals
strengths
and
objectivesand
Defining
weaknesses
Marketing strategy
and
Where
do we
action
want to go?
programs
Coordination
of
(short termthe planning
goals and
process
objectives
Designing
Responsibility
for
How do we
implementation
get there?
Budgeting
strategy
mktg
Implementation
Monitoring

MARKETING PLAN

FINANCIAL PLAN
Operating and Capital Budgets
Provides a
Sales
Budget
complete
picture
Production/ Manufacturing
of the flow of
Budget cash flows for the cost
funds, availability
of goods produced; actual
of cash, projected
production and required
financial position
inventory; budget reflects
of the firm
seasonal demand
provides short
Operating
Budget focus on
term basis for
operating costs; fixed costs;
budgeting
variable expenses
Will need 3 years
Capital
budget provides a
of projected
basis for evaluating expenditure
financial data for
impact business for more than
outside investors
a year; projects expenditure for
new equipment, vehicles or
new facilities; compute cost of
capital and expected ROI using
PV methods

Organizational Plan
Describes the form of ownership
(sole proprietorship, partnership or
a corporation)
Partnership Term of partnership,
name of partners, term of
agreement, specimen signatures
etc
Corporation venture details of
the shares of the stock authorized;
share options, names and address;
resumes of the directors and
officers of the corporation
Incorporated Company principal
shareholders, type and number of
shares stating voting and non
voting rights
Members of the management
team, roles etc.

ORGANIZATIONAL PLAN

PRODUCTION ASPECT

What should it include?

Essentials
Describe all production processes of
Raw Materials; suppliers name and
the business
address, and the terms
Explain production facility
Costs of manufacturing and future
requirements like size, layout,
capital equipment needs
capacity, location
Include sub contractor details
Should state the inventory
requirements of the organization
such as raw materials inventory,
warehouse space requirements
Should explain equipment and supply
chain requirements
Fixed cost allocation of the
production process is to be stated in
the plan

HR ASPECT

What should go into it?

Hiring Policy
Assigning responsibilities
Training required
Skills required
Trade Union Issues
Brief details about the compensation
packages to the employees

TECHNICAL ASPECT
Should Include:

Why?
What kind of technology is required
for the business
Describing the process

Social Aspect
Details of CSR responsibilities of the
government
Companys stand on environment
protection and general welfare
Optimization of resources

APPENDIX
Letters from customers, distributors or subcontractors
Blueprints, maps and photos of location published
articles; market research; industry articles
Leases, contracts or any other types of agreement
Price lists from suppliers
Brochures and advertising

TYPES OF BUSINESS PLAN

Start Up Plan
Internal Plans
Operations Plan
Strategic Plan
Growth Plan
Feasibility Plan
Comprehensive Plan
Dehydrated Plan