SESSION 4 :

BUSINESS PLAN FOR HEALTH SERVICES USING

SKILLS OF ENTREPRENEURSHIP

1
 Learning Tasks

At the end of this session all students should be able to:

• Define of the term business plan
• Explain the elements of a business plan
• Explain steps in developing business plan
• Formulate a business plan
 Definition of the term business plan

• A business plan is the summary of a entrepreneur’s proposed business venture,

its operation, financial details, marketing opportunities and strategy and its
managers skills and ability.
• It can also be defined as a written document incorporating the operations,
financial stand, market feasibility, skills and background of a person going into
business.
 Definition of the term business plan………….

• The business plan offers:-

• A systematic, realistic evaluation of a venture’s chances for success in the market
• A way to determine the risk of the business
• It give an opportunity to manage the business successful during start up
• A means to compare actual results and targeted performance
• A way to attract capital
• A well thought business plan is a very key tool to anyone who want to excel in
business.
• For this case a nurse who has an entrepreneurial thinking will always use it as
key to success
 Importance of a Business Plan

• It helps to proactively avoid doing mistakes in the play ground, thus, minimizes
the risk of failure
• It is the base for determining the potential capital requirement
• It serves time as all activities are stipulated in the business plan document
before going to the play ground
• It helps to predict the strategic approaches likely to facilitate the organization’s
competitive move in term of marketing, human resources, and financial
resources
• Helps to predict the business performance based on the financial projection
• Helps to indicate the capital structure, asset structure and ownership structure
 Importance of a Business Plan………..

• It gives an opportunity to know the target customers’ needs

– Type of service
– Expected level of service performance
– Pricing expectation
– Pre and post purchase services
– Social values and their relative needs
 Importance of a Business Plan………..

• It assist in highlighting key aspects of the business that need special

consideration
• It identify your core competencies (what you can do best) and weaknesses
• It identify opportunities and threats to the business
• Moreover, a business plan is usually required by banks, financial institutions
and private investors in order for them to provide financial support (It
demonstrates to them that the entrepreneur knows what is essential to start a
business and has done the preparation and planning required)
 Elements of a business plan

• The element of a business plan are standard, that is any business plan document should cover all
the elements
• These elements includes:
– Cover Page
– Table of Contents
– Executive Summary
– General description of business
– Personal background
– Market plan
– Business management plan
– Financial plan
– Sources of raising funds
– Operating plan forecast
– Major assumptions
 Elements of a business plan………..

Read the given table 4.1 for detailed description of the elements of a business plan
 Steps in developing business plan

• Research and analyze your product

– Research and analyze your product, your market and your objective expertise
– Consider spending twice as much time researching, evaluating and thinking as you spend
actually writing the business plan
– To write the perfect plan, you must know your company, your product, your competition
and the market intimately
 Steps in developing business plan…………..

• Determine the purpose of your plan

– A business plan, as defined by Entrepreneur, is a “written document describing the nature of
the business, the sales and marketing strategy, and the financial background, and containing
a projected profit and loss statement.” However, your business plan can serve several
different purposes
 Steps in developing business plan…………….

• Create a company profile

– Your company profile includes the history of your organization, what products or services
you offer, your target market and audience, your resources, how you’re going to solve a
problem, and what makes your business unique
– Company profiles are often found on the company’s official website and are used to attract
possible customers and talent. However, your profile can be used to describe your company
in your business plan. It’s not only an essential component of your business plan, it’s also
one of the first written parts of the plan
 Steps in developing business plan……………

• Document all aspects of your business.

– Investors want to make sure that your business is going to make money. Because of this
expectation, investors want to know everything about your business. To help with this
process, document everything from your expenses, cash flow, and industry projections. Also
don’t forget seemingly minor details like your location strategy and licensing agreements
 Steps in developing business plan………………

• Have a strategic marketing plan in place.

– A great business plan will always include a strategic and aggressive marketing plan. This
typically includes achieving marketing objectives like;
• Introduce new products
• Extend or regain market for existing product
• Enter new territories for the company
 Steps in developing business plan………………..

• Make it adaptable based on your audience.

– The potential readers of a business plan are a varied bunch, ranging from bankers and
venture capitalists to employees, although this is a diverse group, it is a finite one. Each
type of a reader does have certain typical interests. If you know these interests up front, you
can be sure to take them into account when preparing a plan for that particular audience.
 Steps in developing business plan…………………

• Explain why you care.

– Whether you’re sharing your plan with an investor, customer, or team member, your plan
needs to show that you’re passionate, dedicated, and actually care about your business and
the plan. You could discuss the mistakes that you've learned, the problems that you’re
hoping to solve, listing your values, and what makes you stand out from the competition
 Formulate a business plan

Refer handout 4.1 and 4.2 and do the given Assignment of formulating a business
plan
 Key Points

• A well thought business plan is a very key tool to anyone who want to excel in
business.
• It helps to proactively avoid doing mistakes in the play ground, thus, minimizes
the risk of failure
• A well written business plan should cover all elements of a business plan
 Evaluation

• What is the business plan?

• What are elements of a business plan?
• What are steps in developing business plan?
 References
• How to Start a Small Business: A Step-by-Step Guide to Starting a Small
Entrepreneurial Innovation as a Learning System Gemmell R. M., Kolb, D. A.
Somers A. 2012 (www.learningfromexperience.com)
• Project Manager: Core Module No. 2 of the Twiga Approach, GTZ, 2010.
• Training Package and Resource kit, African edition by Sussane Bauer, Gerry
Finnegan, and Nelien Haspels, ILO 2008.
• Youth-to-Youth in Step Entrepreneurship Training Manual, German Foundation
for World Population (DSW), 2010
• Operators: Training in Business Development and Improvement Facilitator’s
Packet, ILO 2013