BUSINESS PLANNING

Dar Technohama business incubators

MEMBERS WORKSHOP
30th AUGUST 2011

UNIVERSITY OF DAR ES SALAAM ENTREPRENEURSHIP CENTRE

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Objectives of this module: 1. To enable participants to have a thorough understand of what a business plan is 2. To understand the various processes involved in preparation of a business plan 3. To be able to prepare business plans for their own business ideas
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WHAT A BUSINESS PLAN IS

It is a detailed analysis and description of all aspects of a business over a given time frame. It analyses the products, activities, processes and operations of the business, by objectively assessing their viability, and charting the courses of action that will yield to maximum effectiveness and efficiency.

Finally, the business plan projects the financial results of the business over the planning period.
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CONTENTS OF A BUSINESS PLAN

The owners goals for the enterprise, both short and long term (vision, mission and objectives) A description of products or services to be offered History to-date, if existing business or background to the business idea if a new business
Description of the market opportunities identified, how they have been identified /validated /confirmed and analysis of the competitive situation in the sector
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Contents -- continue
Description of the marketing strategies to be used to realise the objectives in the light of the identified opportunities and competition Description of the operations (facilities, inputs, processes, outputs) envisaged Description of how the business will be staffed, organised, and managed

Projections of financial results (income, cash flows, balance sheets, ratios, etc.)
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Discussion Question 1: Why should we undertake business planning?

BENEFITS OF THE BUSINESS PLAN

The business plan can significantly increase the chances of success/reduce the chances of failure. It serves the following purposes: It is a map/framework to be followed by management

By analysing every aspect of the business and projecting financial results, it provides the promoter with a basis for deciding whether or not to proceed with the idea
It forces the promoter to think long term
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Benefits (Cont)
Can compensate for lack of experience. The promoter learns a lot about products, customers, competition, regulations, taxes, constraints, etc

It may compensate for lack of capital. A welldeveloped business plan can be used to solicit funds from banks, individuals, etc. It enables the promoter to communicate his/her ideas in a way that is easy for them to understand.
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PROCESS OF DEVELOPING
Identify ideas/ concepts for new businesses or expansion

Screen the ideas to choose one for further development

Validate the Idea: Assess the viability of the market

Develop a Marketing Plan, on the basis of knowledge from market assessment

Develop an operations plan Develop an organisation and management plan
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Process (Cont..)
Prepare a financial plan (sources and uses of money) and projections of financial results

Show assumptions
Show benefits Package it: define your vision, mission and objectives for the business and match them with the rest of the plan, such that the plan is a means to realise your personal, economic and other aspirations.

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In brief therefore, a business plan consists of:

5. Financial Plan 4. Organization & Management Plan

3. Operations Plan

2. Marketing Plan
Market Assessment

1. Background information

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PRE-REQUISITES FOR DEVELOPING A GOOD BUSINESS PLAN

Commitment of the promoter Hard work and perseverance Personal involvement and ownership of the process by the owner. This ensures that his/her values are embedded in the business, and maximises learning about the business Willingness and readiness to learn from various sources Alertness to opportunities and problems, and readiness to change/modify the initial idea in the light of new knowledge/information 12 Money and time

Business plan Template

Let us share the template given to you Use that template for developing your company business plan. Stage by stage will be discussed before you begin to write. Exercise 1
Start develop your business plan from 1.1 to 1.3. make sure you have completed b4 we meet.
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End of today
Thanks

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