BUSINESS PLAN

• Perfect for securing working capital;

• Raising capital finance; and
• Planning your business
 Introduction
What is a Business Plan?

• A business plan is a powerful document

that tells the story of your business idea
and your organization.

• It presents your current position, your

vision for the future, and your plans for
realizing that vision.
Parts Of A Complete Business Plan

The basic parts of a complete business

plan are as follows:
 Step 1: Project/ Company description

Start off by writing a product price list that will help you to show whether
this business is viable or not. One side list all the items/services your
business will be selling, on the other side, put the price list so that you
get a feel
WHO ARE YOU OR WHAT IS YOUR PROJECT ABOUT?
How much do you require for your project?
– Project/ Company description: Features the basic, factual
details about your business, such as structure, ownership, and
developments to date
– Describe your project and its location
– Provide its history , development stage and milestones
– Identify your products and services
– Describe your industry, ie, manufacturing, art, retail, etc
 Step 2: Target Market

– Target Market Description: Identifies the types of people or

business most likely to be your customers, and explains their
needs and wants
– Specify the geographic location of your target market
– Describe the demographic or other characteristics of your
target market, eg if you are selling to younger/older people,
what is it that motivates them to buy and their buying patterns
ie, is it seasonal and how many people are interested in the
product, evaluate the market trends, is there a growing market
for the business
– Explain customer motivations and purchasing patterns
– Determine your market size
– Evaluate market trends
 Step 3: The Competition

There are 2 forms of competition, eg if selling beans, your

competitors are covo, meat, etc. The other competition are other
players in the market.

– Competitive Analysis:
– Distinguish your business/ project from others
– Identify factors that will make customers choose to buy your
product/services from you and not others
– Figure out what competition you are up against
– Identify types of competition
– Identify specific competitors
– Determine your competitors market share
– Highlight your competitive edge, ie, what makes you special
compared to your competitors
– Evaluate barriers to entry and potential future competition
 Step 4: Marketing and Sales Plan
– Marketing and Sales Plan: Outlines how you will run your
business and the operational factors that may give you an
edge over your competition
– Summarize your marketing message, what message are they
going to hear. Marketing messages contains P’s, ie,
products, price, place, people, packaging, promotion.
These P’s help to develop the marketing message, ie, focus
on our product, focus on our price – it is cheaper, etc
– Describe what you will use to market your products/ services
– Identify any additional marketing and sales strategies
– Describe your sales team
In the sales plan, also indicate how people can pay you, eg,
swiping, usd, or is there a sales team that will be receiving the
money
 Step 5: Production & Operations Plan

Operations: Key elements for successful execution of business

Determine key 3 key operations elements that will make executing

your business successfully: INPUTS, PROCESSES & OUTPUTS
– What are the inputs? ie, what resources are required to come
up with the product
– What processes will you use? ie, the activities that you need
to do to resulting in the final product/output
– What are the outputs of your business? Measure the quality,
identify and establish any problems to help in continuous
improvement, eg if problem is the inputs or the process
– Highlight your operational advantages
– Address current-or potential – operational challenges
 Step 6: Management Structure

– Management Structure:
– Include yourself in the structure, are you going to be the CEO,
Marketing Manager, Finance Director, etc
– Highlight your key team members
– What management/ staff positions will they hold?
– Predict future management needs
– Describe your staffing/ proposed structure
– Identify your board members, advisors and consultants, if any
 Step 7: Future Development

– Development Plan and Milestones: Shows where your

business will be in several years’ time, how you will get there,
and the milestones you plan to reach along the way.
– In this section share your vision
– To do:
– Define your long-term goals
– Establish future milestones
– Assess the risks
– Explore exit strategies

To execute step 7 properly, use the dashboard below:

 5 year future developments
Goal 2020 2021 2022 2023 2023
• Number of employees
• Product lines
• Sales/ Income
• Purchases/ Cost of sales
• Other expenses
• Gross Profit
• Net Profit
• Fixed Assets
 Step 8: Financials

– Financials: A set of financial statements showing the current

financial status and future financial goals of your company
It is not always about how money you have to start, but the
things/assets that you have and all these are listed in the balance
sheet
– To do:
– Produce your Income Statement
– Develop your Cash-Flow Projection, how much cash will I be
paying out to purchase things to use for generating more
income and how much cash will I receive after selling
products
– Generate your Balance Sheet
– Show your Sources and Use of Funds
– Consider preparing additional supporting financial statements:
Marketing budget; staff budget
If you are serious in getting into
Entreprenuership, DO THE BUSINESS
PLAN YOURSELF. Never ask anyone
to do it for you. Just follow the above 8
STEPS