[THEME: WRITING A PROPER BUSINESS PLAN]

By Douglas Obura, MSi.

Presented atJUNIOR CHAMBER INTERNATIONAL (JCI)

SOLO CHAPTER-SOLO CHAPTER-INDONESIAINDONESIA

BUSINESS DEVELOPMENTBUSINESS DEVELOPMENT WORKSHOP WORKSHOP PAPERPAPER

-2011-

https://twitter.com/DouglasEduczone

Que:- Have you ever conducted a feasibility study?- How many questions can a ‘Business Plan’ address?

Note: - A ‘Business Plan’ is a crucial document for an entrepreneur.- ‘Financial Literacy’ is very important.

A Business Plan* A document created by an entrepreneur that summarizes;- Operational objectives of a b/ness,- Financial objectives of a b/ness & the budget structures, - Company’s structure, goals & future plans.- How the objectives are to be realized.

Reasons why you shoud write a proper B/ness Plan- To gauge the credibility of ur b/ness idea.- To attract investors/partners.- To seek a b/ness loan/grant from financial institutions/ lender.- To gauge your company's success.- To act as a guide during ur b/ness planning.-For proper mgmnt of your b/ness's growth.

Relevant sections of a proper Business Plan.- The Executive Summary, -Business Description, -Mgmnt Team, -Operations, -Critical Risks Involved, - Market Potentials, a) Market analysis, b) Marketing strategy, c) Services/Products for the market- The Financial Projections, Exit strategy, Appendix.

Do you think a ‘Cover Page/Sheet’ is important?* Yes, a ‘Cover Page/Sheet’ is very important bcoz it;- Portrays impressions of a good preparatn & professionalism.- Holds ur chances of making an impact on potential investors.- Company’s name, the date, & names of project managers.

The Executive Summary

B/ness’s introductn, Strategies, Goals, Objectives, Fundings. Should be 2 to 3 pages. Should show whether u’re starting a b/ness or seeking to

expand. Should indicate steps to achieve a successful b/ness launch. It acts as a communication tool for employees & potential

customers who might need to understand. Should be convincing, encouraging & promising. An Exit Strategy should be included.

Hint: This should be written last.

General B/ness Profile & Description

Company's/business’s Origin, History, Creation. A clear & concise Mission Statements. Sales, Production & Marketing strategies, Quantify ur market size/segmentation/relevant

statistics. Competitors’ & existing customers analysis, Specific Facilities & Services available, It’s the longest part of ur perfect b/ness plan, It could be organized with sub headings & other relevant

details.

Your Business Goals- Both short & long-term goals should be identified.- Brief anticipated growth rate.- The company’s primary customers.

The Management Team- Biographies of the Mgmnt Team (Names & backgrounds).

- Organizational structure with clear hierarchies.

- Board of directors/advisors/technocrats.-It should show respective responsibilities (each team member).

An organizational structure

CEO/MD

Board of Directors

DepartmentalManagers

HRM

PrincipalOfficer

HRM

DepartmentalManagers

Finance

DepartmentalManagersLogistics

PrincipalOfficer

Finance

PrincipalOfficer

Finance

DepartmentalManagers

Marketing & Sales

PrincipalOfficer

Marteting & sales

The Market Potentials

a) Market Analaysis; Market research is a pre-requisite. Convince investors/lenders/employees, abt the market. Description of the open industry. Show the existing barriers.b) Marketing Strategy; Strategies or techniques to employ.How to handle competition.Business type (online, Retail or Wholesale).Nature of Ads, (print media, TV, online services/the web)Intended expenditure on marketing.c) The Services/Products for the market; Explain how ur product/service differs from others. The need for ur product/service.

Business Status- Is is a Sole Proprietor or a Partnership B/ness.- B/ness Approach in relation to its status.- Show the legal ramifications.

Financial Projections- Ur Financial Intelligence & Accuracy is paramount.- Financial Projection [yrly, (1–3) yrs, (3–5) yrs, etc]- Summary of ur Financial Forecasts using spreadsheets & formulas used to reach ur projections.- The balance sheets, income statements & cash-flow projections.

Critical Risks Involved (check SWOT’s analysis)What are some of the;a) Internal risks? b) External risks? ............................... ....................................

Exit Strategy- How & when will u decide to quit?- Focus on;a) Dollar figures, b) Revenue growth, c) Market's reception.- A consensus amongst the BOD.

Appendix- Reviews of Relevant publications,- Letters expressing interests to buy the product or service,- Questionnaires used for data collectn (market research).

- Detailed results of marketing studies that support ur marketing assumptions,

- Resumes of the key Mgmnt Team & Technical Advisors.

IDEOLOGICAL STRATEGY TO A B/NESS DEV’T (SWOT)

SWOT (Strength, Weaknesses, Opportunities & Threats) SWOT’s analysis helps in bringing up proper b/ness

strategies.

Strengths & Weaknesses; These re internal, to the company/organization or b/ness. Matters concerning resources, programs & organization, in

key areas such as:

[Sales, Marketing, Distribution, Efficiency, Operations & Processes, Promotional support, Quality & Capacity, Products services & Productivity, Costs & Pricing, Competitiveness, Financial performance, Organizational systems & structures]

Threats & Opportunities- These are external & confronting to the company or b/ness.- Can develop in the following ways;a) Market place that’s changing (Economic/social factors).b) Competition (creating new threats or opportunities).c) New technologies (changes in products/processes)

Using “SWOT’s” analysis helps you to:-a)Build on strengths.

b)Resolve weaknesses.c)Exploit opportunities.

d)Avoid threats.

DIFFERENCE BTWN A B/NESS PLAN & A B/NESS PROPOSAL

B/ness Plan It is a document that

describes in detail how your business is set up.

It is a long term plan that is put together for a company.

It’s a road map for guiding a company through the business environment.

B/ness Proposal It’s a document that you

submit to another enterprise proposing a business arrangement.

It is a document made in writing from the seller to the buyer (seller-2-buyer’s concept).

It’s time-sensitive document (specific acceptance dates to ensure other business do not languish).

a) Used internally to lay out goals or restructure a company, or to do strategic planning.

b) Used externally focused, it may be used externally to solicit funding, maintain or expand a business. 

Describes a company & its organizational structure.

Includes objectives, targeted market, demographics & financial projections for up to five years

It is made typically from an outside company to another company.

Documents where a company shows details for completing business functions.

Construction companies often use proposals to bid for new projects.

It could be An unsolicited proposal (brochures @ job fair, trade show).

It could be An informal proposal (eg; u requests a company to submit in a proposal showing quotation/estimate for their services, fix ur sofa/house).

It could be a formal proposal/invited proposal 

THANKS!