JITIHADA PROJECT

BUSINESS PLAN TEMPLATE

INTRODUCTION

Welcome to the JITIHADA BUSINESS PLAN COMPETITIONS. Before YOU proceed

to prepare your the business plan, it may be necessary for you to answer the questions,
what is a Business Plan? And what are the key sections of a Business Plan?

What is a Business Plan?

It is a written document that describes your business in details giving the goals and
objectives and lists the steps you will undertake to achieve them.

Sections of your Business Plan

The following are the major sections of your business plan that you must complete:

A. Cover page
B. Table of Contents ( prepared after you have completed the plan)
C. Executive Summary (done after you have completed your business plan)
D. Statement of the purpose
E. Business Description
F. Marketing Plan
G. Organization and Management
H. Operational/Production Plan
I. Risk Reduction
J. Exit and Harvest Strategies
K. Financial Plan

You may also include an Appendix to give any useful information.

NOTE: The following Business Plan Template has been prepared in line
with the guidelines of the Business Plan Competition (BPC).

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 A. COVER PAGE

i. Business Name

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ii. Business Address

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iii. Name of Presenter (Who are you?)

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iv. Organization presented to

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v. Date of Presentation

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B. TABLE OF CONTENTS

Gives page numbers of various key section of your business plan

C. EXECUTIVE SUMMARY

Give a brief overview of your business highlighting the key features: What is business
about, products/services on offer, market - main customers, human resources – the
organizations structure, financial summary – projected income and assets among others.

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D. STATEMENT OF PURPOSE

Outline the purpose of the business plan

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E. BUSINESS DESCRIPTION

i. Business Location and Address

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ii. Business Ownership (nature of the business)

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iii. Products/Services offered

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iv. Industry which the business will operate under

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v. Justification of the business

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vi. Short term and long term goals

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vii. Entry and growth

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F. MARKETING PLAN

Highlight how you plan to market your products/services ie how do you intent to
reach your target customers?
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i. Outline the characteristics of the potential customers
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ii. Competition
 Who are the main competitors?

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 What are their strengths?

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 What are their weaknesses?

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 How do intend to capitalize on their weaknesses?

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iii. Market share: expected total market share

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iv. Pricing strategy: outline your pricing strategy

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v. Advertising and promotion: outline your pricing and promotion strategy

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  Initial plan

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 Long term strategy

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 Distribution strategy

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vi. Sales tactics: outline your sales tactics

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G. ORGANIZATION AND MANAGEMENT

i. Organization structure ( Draw your organization chart)

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ii. Management team

State the composition of your management team, its qualifications/post, duties and
responsibilities.
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iii. Other personnel ( What other employees will you require?)

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iv. Outline how you will recruit and train your staff

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v. Remuneration of staff
Highlight how you will recruit, train and develop your staff.
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vi. Remuneration/incentives ( How will you remunerate them?)

 Salaries/wages

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 Fringe benefits

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vii. List the support services required

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viii. Licenses/permits
 Required licenses/permits

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 Who will provide the licenses/permits and at what cost?

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H. OPERATIONAL/PROCEDURAL PLAN

Describe briefly how you will operate your business

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i. Production facilities and capacity utilization

 List the machines, equipment and tools required
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 Describe the cost, capacity and supplier of the required machines and
equipment
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ii. Production strategy

 Outline the material requirements
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 What is the material cost?

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 Outline the source
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iii. Production design and development

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  Outline how you will design and develop your product
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 What will it cost to design and develop your product?

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 Outline the estimated cost of product/service

Direct Material cost + direct labour cost + overheads

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iv. Relevant regulation

 List the patents and regulations needed
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 What is the cost for obtaining the patent trademarks?

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 List other legal rights you will seek

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I. RISK REDUCTION STRATEGIES

i. Outline how you will analyze and reduce business risks

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  Future business risks
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 Counteracts mechanisms
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J. EXIT AND HARVEST STRATEGIES

i. Identify the exit strategies ( If you plan to either make your business a public
company or Sale it etc).

 Type of exit/harvest strategy

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 Initial public offering

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 Private sale
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 Management buyout
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 Outline the advantages of using strategy

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K. FINANCIAL PLAN

Identify how you will obtain and use business finance

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i. Pre-operational costs

a. Outline your pre-operational cost

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b. What is our proposed capitalization?

- Own contribution (Your capital)
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- Funds from borrowing sources

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- Total investments
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ii. Identify the working capital requirements
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a. Prepare your pro-forma income statement ( Use the given template –A))

b. Prepare your pro-forma balance sheet ( Use the given template - B)

c. Prepare your projected cash flow statement ( Use the given template - C)

d. Outline how you expect to finance your operations

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e. Outline your initial capitalization for existing businesses

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f. What is your proposed capitalization?

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g. What is your break-even level?

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h. How do you measure your profitability?

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 TEMPLATE C: PROFORMA INCOME AND EXPENDITURE
STATEMENT

NAME OF YOUR COMPANY/BUSINESS

PROFIT AND LOSS STATEMENT,
For the year ended Dec 31, 20__
INCOME
Sales
Other Income

Total Income Kshs

EXPENDITURE

Total Expenses Kshs

NET PROFIT Kshs
Owner’s Drawings Kshs
NET PROFIT After Kshs
Drawings

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 TEMPLATE B: PROFORMA BALANCE SHEET

NAME OF YOUR COMPANY/ BUSINESS

BALANCE SHEET
For the year ended December 31st 2009
ASSETS LIABILITIES
CURRENT ASSETS CURRENT LIABILITIES
Cash in Bank Accounts payable
(Creditors)
Accounts receivable
(Debtors)

FIXED ASSETS LONG TERM

LIABILITIES

NET WORTH
Capital
Net Profit

Kshs = Kshs

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 TEMPLATE C: CASH FLOW PROJECTION

    Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total
CASH IN  
Cash carried
forward                      
LOAN                      
Cash from Sales  
CASH OUT
 
 
 
 
 
 
 
 
 
LOAN
PAYMENT  
Owner's Draw  
   
CASH
BALANCE
CUMULATIVE
Work it out on a monthly basis using average estimates for your business. The cash surplus on the cash flow must be enough to
service the funding requested and leave a margin for re-investments.

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