WELL COME!!!

BUSINESS PLAN DEVELOMENT

TRAINING MANUAL
 Climate setting

Self Introduction
• Name
• Educational Background
•Position
•Experience
•Life time success
•Missing issues
•Passion
zenebe Zaffu 3
 Setting ground rules

• How do we
work together
during the
training?
Class Manager

zenebe Zaffu 5
Energizer Team

zenebe Zaffu 6
 Daily Reporters

• Day 1-Day 10

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What do you Expect from this training ?

1. Write your expectations!

2. List down your fears of
achieving your
expectations , if any!!!
3. Write down a solutions
for that fears!!!

zenebe Zaffu 8
 Schedule

Morning Session
 Training 2:30 - 4:00
 Tea break 4:00 - 4:20
 Training 4:20 - 6:00

Lunch Time 6:00 - 8:00

After Noon Session
 Training 8:00 - 9:30
 Tea break 9:30 - 9:50
 Training 9:50 - 11:00

zenebe Zaffu 9
 TRANING INTRODUCTION
 This manual is designed for those with an inspired idea who
wish to:
 interpret it into new business
 or incorporate it in an existing business.
 challenge for those who want to get a business idea is securing
fund.
 Any investor will regularly insist upon seeing a business plan
before they approve any investment.
 Besides being a prerequisite for gaining access to finance, it
also provides the blueprint for successfully creating and
running the new venture.
 RATIONAL OF THE TRAINING
 A number of business owners involved in the business:
 Have knowledge and skills gaps and
 Operate outside of their intended purpose.
 Financial Institutions would not be able to deliver loans
 The unemployment problem has quiet remained a critical issue
in the region.
 Therefore, it is a vital issue to fill the gaps by capacitating
business organizations to develop business plan within their
respective businesses area.
 In order to address the knowledge and skills gaps that are
prominent in business planning preparation, the South
Leadership Academy has designed this business plan
development training manual.
The contents of the manual were developed
based on:
 previous training programs feedback,
 real problems that the practitioners face in
their day to day operation
 training needs assessment conducted by
the Academy last year over 42 regional
government institutions here in Hawassa.
 TRAINING OBJECTIVES
1. General Objective
 The general objective of this training is to provide participants
with basic concepts and practices of business plan to help them
acquire the knowledge and skills which will enable them to
prepare business plan in their respective organizations.
2. Specific Objectives
At the end of the training, trainees will be able to:
1) Understand the business plan and its environment in order to
control business growth, risks and uncertainty,
2) Identify the process, techniques and tools that can be used in
writing business plan,
3) Explain why and how to write executive summary, business
description and business strategy,
4) Understand the meaning and concept, features and benefits of
product and service as well as Product portfolio and product
plan,
5) Explain about market and industry analysis, sales and
marketing plan and their strategies,
6) Recognize organizational structures and operations that
enables to ensure people development, work space & other
facilities available,
7) Apply financial statements, break-even analysis and ratio
analysis in order to avoid sales, liquidity and succession crises,
 Training Delivery Method
 Focuses more on a participatory learning approach,
 that enable effective facilitation, participatory and
practical learning for long-term knowledge retention.
 the trainer acts as a facilitator.
 He /she creates the conditions and the environment in
which trainees themselves will discover and practice new
knowledge and skills.
By means of:
• exercises,
• experience and knowledge sharing ,
• critically conceptualize and reflection,
• appropriate activities,
• assignments and field visits.
In addition, the traditional trainer lecturing
method also will be used.
 COURSE OTUTLINE
 PART ONE- BUSINESS PLAN AND ITS ENVIRONMENT

 session One: Concepts and Meanings of Business and Business Plan

 Session Two: Business Planning Process

PART TWO- GUIDELINES FOR BUSINESS PLAN

 Session Three: Executive Summary and Business Description

 Session Four: product and service

 Session Five: marketing and sales plan

 Session Six : Organization and Operational Plan

 Session Seven: Financial Plan and Projection

 PART- ONE
THE BUSINESS PLAN AND ITS
ENVIRONMENT
 SESSION- ONE
CONCEPTS AND MEANING OF
BUSINESS AND BUSINESS PLAN
 Objectives
 Explain the meaning, types and forms of business
 Describe what a business plan is
 State the purpose, types, objectives and benefits of business
plan
 Explain why business plan is failed
Course outline
1.1. The Concept and Meaning of Business
1.1.1. Meaning of Business
1.1.2. Types of business
1.1.3. Types of Business organizations
1.2. The Concept and Meaning of Business Plan
1.2.1. Meaning of Business Plan
1.2.2. purpose
1.2.3. Types of Business plan
1.2.4. Contents and Elements of Business Planning
1.2.5. Reasons why businesses fail
Session Summary
Business is an activity or entity, normally the provision
of products and/or services, to produce commercial gain,
extending to non-commercial organizations whose aim
may or may not be profit.
They are categorized into :
1. agricultural,
2. manufacturing,
3. service and
4. trading businesses.
There are also four business organizations
such as:
sole proprietorship,
partnership,
corporation and Limited Liability Company.
A business plan is a written document/a road map
carefully prepared by an entrepreneur or management of
a business that describes:
 the objective of the business,
 the proposed action with the necessary steps to enable
the business to reach those objectives.
Its purpose is to:
 identify, describe and analyse a business opportunity
and/or a business already under way,
 examining its technical, economic and financial
feasibility.
 It also serves as an accessory for acquiring capital.
 Business plan categorized into
 complete,
 summary and
 operational types of plans.
Reasons why businesses fail
1. absence of a strategic business plan to guide
business and investment decisions,

2. enterprises often go into business without

justifying the feasibility of a business opportunity,

3. Lack of adequate business vision and concept,

 SESSION-TWO
PROCESS OF BUSINESS PLANNING
Objectives
 At the end this training session, participants will be able to:

 Understand a short brief about business planning process

 Describe about idea generation, source of ideas and data

gathering methods,
 Explain the meaning of SWOT Analysis its components
 Understand the inter link between feasibility study and
business plan
 Identify the major functional Plans in a business planning
process
 describe how to conduct report, evaluation, control and
review of the planning process.
• Introduction
• Reflection questions
2.1.Overview of Business Planning Process
Business Planning Process

Preliminary Investigation

Idea Generation

Environmental Scanning

Feasibility Analysis

Project Report Preparation

Evaluation, Control and Review

 Session Course Outline
2.1. Overview of Business Planning Process
2.2. Idea generation
2.3. Environmental Scanning
2.4. Feasibility study
2.5. Drawing Functional Plans
2.6. Project Report Preparation
2.7. Evaluation, Control and Review
Session Summary
• A business planning process plays one of the
most important roles in a company or in an
organization.
 It plays an important role, due to the high
impact it has on:
 profitability,
 stability and
 position in the market.
The process of writing down what is involved in
bringing your idea to reality requires dealing
with the:
 why,
 what,
 who,
 how,
 where,
 when, and
 how much of your venture.
Writing a business plan forces you to take a deep
look at your idea and how you will turn it into a
business.
Steps in a business plan include:
 Idea Generation,
 Environmental Scanning,
 Feasibility Analysis,
 functional plan (marketing Plan, financial plan,
organizational plan & Operational plan),
 Project Report Preparation,
 Evaluation, and Control & Review.
 PART –TWO
GUIDELINES FOR BUSINESS PLAN
 SESSION- THREE
THE EXECUTIVE SUMMARY AND
BUSINESS DESCRPTION
Objectives
At the end of the session, the trainees will be able to:
 Understand about business plan executive summary, its
purpose, how and when to write it,
 Describe Statements of Vision and Mission of the business and
their corporate values, goals and objectives,
Explain the meaning of business strategy,

parts in writing the business strategy and

Keys to Success for the business.

Appreciate what Risk management and

Business Continuity Planning are all about

and their importance.

 Session Course Outline
3.1. The executive summary
3.2. Business Description
3.2.1. Statements of Vision and Mission

3.2.2. Business Goals and Objectives

3.2.3. Business Strategy and Critical success Factors
3.2.4. Risk management and Business Continuity Planning
Session Summary
The executive summary:

 is an overview of the entire business plan/ can only touch on the

high lights of the business plan,

 will either capture the readers’ attention

 will basically tell readers the history of the

company/organization, where it is today and what direction it is

headed.

 is simply a one page condensation of what's in the rest of the

plan.
 Strategy is a broad term that encompasses a
company's/organizations overall approach to doing business.
 The business strategy has roots in all the things it does that
make a difference in its survival and success.
 It includes vision and mission statements, values and beliefs
of the business, goals and objectives of the business.
 In addition business strategy, critical success factors of the
business and risk management and continuity planning of the
business also indicated.
 SESSION FOUR
PRODUCT AND SERVICE
Objectives
At the end of the session, the trainees will be able to:
• Understand the meaning and the concept of Products,

• Describe the Product and service features and benefits,

• Explain the Product description, and
• Realize the Product portfolio and product plan.
 Session Course Outline
4.1. The concept of Products
4.2. Product and service features and benefits
4.3. Product description
4.4. product plan
4.4.1. Product Planning
4.4.2. Stages of New Product Planning
 A product is:
 a good, service or idea
 consisting of a bundle of tangible and
intangible attributes
that satisfies consumers and is received in
exchange for money or some other unit of
value.
 In the product and service plan section of the business
plan, you present the nature of your business and the
unique features of the product or service.
 Describes the product and/or service to be provided and
explain its qualities, Benefits of your products and services
 products or services detail description made in terms of the
features and benefits they offer to customers and
 the characteristics of product in terms of functionality,
quality, appearance that meet the needs of your customer.
A product planning can be defined as the
evaluation of the range, specification, and pricing
of new and existing products according to the
present and future market requirements and
competition.
Its objective is to:
1. meet the customer needs,
2. spotlight firm’s strengths and weaknesses,
3. fortify better resource utilization,
4. guarantee a firm’s survival
Stages of New Product Planning
1. Idea Generation

2. Screening of Ideas
3. Market Research
4. Product Concept Development
5. Commercial Feasibility Analysis
6. Product Development

7. Test Marketing
8. Market Entry/Commercialization
 SESSION FIVE
MARKETING AND SALES PLAN
Objectives
At the end of the training session, trainers will be able to:
 Explain the concept of Market and its segmentation,
targeting, and position,
 Explain the concept of Marketing and different aspects,
 Describe the different types of Marketing Strategy,

 Design and develop the Marketing Plan,

 Explain the concept of Sales and its plan.
 Session Course Outline
5.1. Market
5.1.1. The Meaning of Market
5.1.2. Market Segmentation, Targeting and Positioning
5.1.3. Marketing Mix
5.1.4. Market growth
5.1.5. Market Competition
5.2. Marketing
5.2.1. The meaning of marketing
5.2.2. Marketing Concepts /Philosophy
5.2.3. Why Marketing
5.2.4. Marketing Strategy
5.3. Marketing Plan
5.3.1. The meaning of marketing plan
5.3.2. Why Marketing Plan
5.3.3. Preparation of a Marketing Plan
5.3.4. Step to develop a successful marketing plan.
5.4. Sales
5.4.1. The Meaning of Sales
5.4.2. Sales Plan
5.4.3. Characteristics of a Good Sales Plan
Session Summary
The market can be viewed from many different
perspectives and, it is impossible to define precisely.
But, it is all about a group of potential buyers with
needs and wants and the purchasing power to
satisfy them.
Effective market more or less should mainly focus
on:
 STP model, marketing mix and market growth
issues are the main components to be seen inth
market.
Marketing is not equal to sales and
promotion, it is a broader concept.
In the modern world:
 marketing is everywhere;
 most of the task we do and
 most of the things we handle are linked to
marketing.
Marketing envelops:
 the design and packaging of a product,
 the price and discounting strategies for the
business, and
 the intimate knowledge of the current and
future needs and wants of the target market.
The philosophies Marketing is based on are

 Production concept,

 Product concept,

 Selling concept ,

 Marketing concept ,

 Social marketing concept.

 Marketing strategy has four main areas:
 the pricing strategy,
 the promotion strategy,
 the distribution strategy and
 the sales strategy
 marketing plan is a set of orderly actions aimed at achieving
specific objective(s) within a given timeframe.
 Successful marketing plan incorporates the following points:
1. State your marketing objectives
2. Identify demographics of your target market
3. Identify your competition
4. Describe your product/service
5. Define place (distribution strategy)
6. Choose your promotion strategy
7. Develop a pricing strategy
8. Create a marketing budget
 Sales describes in detail:
 the complete sales process,
 names of the distribution channels ,
 the costs and
 explain the requirements for:
 the number,
 qualifications and
 motivation of your sales staff.
A sales plan is an effective method that
involves activities like:
 sales,
 forecasting,
 demand management and
 determining sales targets keeping in mind
the desired level of profitability by an
organization.
Charactestics of good sales plan:
1. aligned with the vision and mission of the company
2. The objectives serve as directions for achieving the
broader goals of the organization
3. It must specify a sufficient time line for achieving the
goals of the organization.
4. specify means for achieving the objectives.
5. planning activities must be defined as long-range,
medium-range and short range planning programs.
6. The plan also must be flexible enough to adjust to the
changing needs of the company or the market.
 SESSION –SIX
ORGANIZATION AND OPERATIONS
Objectives
At the end this training session, participants will be able to:

 Understand the meaning, principles, and purposes of

organizational structure

 Explain Management’s Capabilities, and Profiles, and

Ownership Information of the business

 Describe the Meaning of Operation, and Operational Plan

and components of operational plan
 Session Course Outline
6.1. Organizational Structure and Management
6.1.1. Organizational Structure
6.1.2. Principles of organizational structures
6.1.3. Structuring an Organization
6.1.4. Purposes of Organizational Structures
6.2. Organizational Management
6.2.1. Management’s Capabilities
6.2.2. Management Profiles
6.2.3. Ownership Information
6.3. Operations and Operational Plan
6.3.1. The meaning of operation and operation management
6.3.2. operational plan
6.3.3. Components of Operational Plan
 In relation to Organization and operation,
there is a need of brief description of your
company including details about :
 ownership,
 management and
 board of directors.
 Qualifications, experience and education are
important to provide readers
 with an insight as to how these individuals fit
into the organizational structure and what they
can bring to the table in their designated roles.
The plan's readers need to be convinced that
the people running the business have the
expertise to deliver whatever it is that the
business provides to its customers.
Operation is one of an important function in a
business organization whereas operational plan
is detail- oriented plan that clearly defines how
a team or department contributes.
It has product process, facilities and
equipments, staffing requirements, and
production plan components.
 SESSION-SEVEN
FINANICIAL PROJECTION
Objectives
 At the end this training session, participants will be
able to:

 Explain the meaning, nature and objectives of

financial statements;

 Identify the major financial Statements and their

respective specific components
 Describe the specific elements of income statement, cash
flows and balanced statements
 Identify how to prepare and project financial plan using
financial statements,
 Appreciate the meaning and importance of break-even
analysis and ratio analysis,
 Understand the sources and uses of funds
 Session Course Outline
7.1. Financial Statements Analysis
7.1.1. Basics of Financial Statements
7.1.2. Types of Financial Statements
7.2. Break-even Analysis
7.2.1. The meaning of Break-even Analysis
7.2.2. Break Even Point
7.3. Ratio Analysis
7.3.1. Overview
7.3.2. Classifications of ratio analysis
7.4. Sources and Uses of Funds
7.4.1. Sources and Uses of Funds
7.4.2. Use of Funds/Financing
 Session Summary

 Financial statements are the end products of accounting

process,
 which reveal the financial results of a specified period and
financial position as on a particular date.
 Financial Statements are prepared and published for the
benefit of various stakeholders.
 These statements include :

 income Statement,
 cash flows and
 balance sheet.

 Break-even analysis is the analysis of the level of sales at which

a accompany /an organization would make zero profit.
 Financial ratios tell you how well or badly your business is
doing.
 It helps to highlight specific areas of your business that need
special attention.
The business funds can be financed from
internal or external sources.
Concerning the use of fund there are two
financing methods for the business:
 debt financing and
 equity financing are important issues.
THANK YOU!!