BUSINESS IDEA, OPPORTUNITIES

AND MARKETING STRATEGIES CHAPTER 5

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 BUSINESS PLAN

AT THE END OF THIS CHAPTER, YOU WILL BE ABLE

TO:

 Define what is a business plan.

 List the individuals who need a business plan.
 Explain the importance of a business plan to an
entrepreneur.
 List the main sections of a business plan.
 Describe the format of a business plan.
 Discuss the guidelines in preparing a business plan.
 Explain the reasons for failure in a business plan.

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 BUSINESS PLAN

A business plan is a roadmap, a guide to

achieve goals and how to achieve it.
The accuracy of a business plan will reflect
management's ability, experience and history
in running the business.
The business plan is also known as venture
plan, entrepreneur plan, working paper, project
paper or prospectus.
The plan serves as a guide and blueprint for a
proposed business project that one intends to
undertake.
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WHO NEED A BUSINESS PLAN?

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 THE PURPOSE OF PREPARING A
BUSINESS PLAN

THE PURPOSE OF PREPARING A

BUSINESS PLAN

To allow the entrepreneur to view To allocate business resources

and evaluate the proposed business effectively
venture in an objective, critical and
practical manner

To analyze and evaluate the As a guideline for managing the

viability of a proposed venture business.

To convince relevant parties of the

investment potential of the project
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THE IMPORTANCE OF A BUSINESS PLAN

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GUIDELINES IN PREPARING BUSINESS
PLAN

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REASONS FOR FAILURE IN BUSINESS
PLAN

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 THE CHARACTERISTICS OF A
GOOD BUSINESS PLAN
THE BUSINESS CONCEPT

 Details description about :

The industr y, your business structure, your par ticular product or ser vice, and
how you plan to make your business a success.

THE MARKETPLACE SECTION

 In which you describe and analyze potential customer s: who and where they
are, what makes them buy and so on.
 Here, you also describe the competition and how you’ll position your self to
beat it.

THE FINANCIAL SECTION

 Contains your income and cash flow statement, balance sheet and other
financial ratios, such as break-even analyses. This par t may require help 9
from your accountant and a good spreadsheet sof tware program.
 THE CHARACTERISTICS OF A
GOOD BUSINESS PLAN
Allocation of Business Resources
 The effective allocation of business resources is used
to attract investment capital, secure loans , convince
workers to join, and assist in attracting strategic
business partners.
 The development of a comprehensive business plan
shows whether or not a business has the potential to
make a profit.
Analysis and Evaluation
An entrepreneur must analyze and evaluate the
viability of a proposed venture.
This is necessary to assist potential investors in
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analyzing and evaluating the viability of a project.
 THE BUSINESS PLAN
FORMAT
COVER LETTER

The cover letter is often enclosed with the completed

Business Plan as an introduction to the purpose and
contents of the attached plan.
This letter needs to specify what the entrepreneur
hopes to obtain from the Business Plan being
submitted and subsequently evaluated by the
relevant recipient.

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 1) COVER PAGE & TABLE OF CONTENTS

The cover page presents certain basic introductory

information as follows:
 Title of the business plan
 Logo, name and address of the business
 Name of the writer/s (prepared by)
 Date of submission
 Company's mission
Table of contents will list the main headings, tables,
schedules and appendices according to page numbers.
This list will facilitate the reader in identifying the
appropriate pages for easy reference.
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 2) EXECUTIVE SUMMARY

The executive summary is the most important section of a

business plan. This is the first section that needs to be looked
at and it tells readers where the company is and where the
company wants to go.
The executive summary is an independent element of the
business plan. It should contain a brief overview that provides
readers or potential investors a brief but dynamic description
of the most important aspects of the business plan. In
particular, it should highlight the business description, product
or service, the value to the customer , the relevant markets,
competition, operations, risk/opportunities, management
expertise, financial and capital requirements, source of fund,
used fund and possible return on investment.
The reader should be able to read and comprehend the
summary in ten minutes as the summary’s length is normally
between one to three pages. 13
 3) ORGANIZATION CHART &
ADMINISTRATION PLAN

Organization/ Management/ Administration Plan

Schedule of tasks and

Administration
responsibilities
Organization chart/ budget
Structure
Schedule of
remuneration

List of administration List of office equipment

personnel and supplies

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 4) COMPONENT OF BUSINESS IDEA

i- PRODUCT OR SERVICE DESCRIPTION

 The project, product or ser vice
 Its key features or uniqueness
 The key benefits to the customer
Ii- TECHNOLOGY AND PROCESS DESCRIPTION
 The technology needed
 The technology product development strategies
Iii- MARKET AND COMPETITION
 Market segmentation
 How are you selling this product to customers
 What is your pricing strategies
 4Ps of Marketing – Product, Price, Promotion & Place
Iv - SALES FORECAST
 Cost, Sales & Revenue
V- BUSINESS MODEL 15


MAIN BODY OF THE BUSINESS PLAN

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 MAIN BODY OF THE BUSINESS PLAN

This section is central and vital in making

up the complete business plan.
It contains information related to the
various aspects of the proposed venture
particularly :
1) Administrative plan/strategies,
2) Marketing plan/strategies,
3) Operation plan/strategies,
4) Financial plan/strategies
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 5) MARKETING PLAN / ANALYSIS

Marketing Plan /Market Analysis

Target market Product or services

Competitors (strength and
weaknesses)
Sales forecast
List of marketing personnel
List the main tasks and
responsibilities
description/ product
innovation/Introduction
Market size
Marketing strategy
Market share
Marketing budget

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 6) OPERATIONS PLAN

Operations process / Process

innovation

Process flow chart

Schedule of tasks and
responsibilities

List of personnel Schedule of

remuneration
Operation Plan/
Production Strategy
Machinery and equipment
Material
requirement

Operations layout plan

Operations
Location of operations
budget

Operations overhead
Production schedule/Capacity planning –
Output in units/ Operations time

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 7) FINANCIAL PLAN

Prepare the project

Prepare the sources of financial
implementation cost schedule
schedule

Financial Plan/Strategy/Analysis/Statement

Prepare the pro forma balance

sheet
Prepare the pro forma cash flow
statements
Prepare the proforma profit and loss
account/ proforma income statement

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 8) SWOT ANALYSIS

The entrepreneur can view and evaluate the

proposed business venture in an objective, critical
and practical manner by SWOT analysis of the
company, which highlights:

 Strengths
 Weaknesses
 Threats
 Opportunities

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9) ONLINE PLATFORM/YOUR POSTING
TO PROMOTE

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 10) REGISTRATION GO E-COMMERCE

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10) REGISTRATION GO E-COMMERCE

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THE END

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