business plan manual pdf

8/8/2019 Business Plan Manual PDF

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Basic information

Name of business ______________________________________________________________________

Physical address _______________________________________________________________________

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Postal address _________________________________________________________________________

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Contact person _________________________________________________________________________

Contact detail (tel, cell, fax, e-mail & website if applicable) _____________________________________

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Legal Consultant

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Registration No.____________________________________________________________________________


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Business Description

Executive Summary

History

Is this a new or existing business? If new, explain how the opportunity was identified. If existing, whenwas it established, what products and/or services are currently offered, where is it located, what is therevenue/turnover, how many employees, and are financial records available?

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GoalsExplain the reason(s) why this business opportunity is being pursued.

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Core activities of proposed business

Describe the main business activity. ____________________________________________________________________________________

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Location

Discuss the physical location of the proposed business in terms of region, city, town and infrastructure(roads, communications, etc.), as well as distances from nearest main centres.

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Product and/or service description

Detailed descriptionWhat products and/or services will be manufactured or sold?

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Existing customer behaviourWhat products or services are potential customers currently using to fill the identified need?

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Expected changeWill potential customers change from existing products to your products and why? What is required toconvince them?

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SuppliersName existing or potential product suppliers

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LocationWhere is the head office and local branches?

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Experience and reputationHow have you assessed the experience and stability of the supplier and the quality of their products?

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AgreementsHave you entered into an agreement with a supplier?

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Have you agreed on purchase prices and if so what are the prices?

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What guarantees does the supplier offer for the products?

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What is the delivery schedule?

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What training can the supplier make available?

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Alternative suppliersDo you have any alternative supplier(s)?

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Ownership structure

Shareholders/ownersList the shareholders and/or owners and describe their role in the company.

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Shareholding

What share percentage does each person hold in the company?

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ContributionWhat will each shareholder contribute (e.g: cash, experience, contacts, time, etc.) to the business?

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Legal considerations

Statutory/legal requirementsAre you aware of any legal requirements to start and operate the proposed business?(Company Registration, Trading licence / Permits, Tax registrations, Regulatory Bodies, Associations,

Other) ____________________________________________________________________________________

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Opportunity

Customer description

Multiple Customers (households, institutions and/or other businesses) - if institutions, describe the

typical type, size, location. If individuals or households, describe the potential customer in terms ofincome level, age, gender.

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Single or Small Number of Customers (National Utility/Large Industrial Company), describe in terms oftheir type, size and location.

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Geographical area where the product or service will be offered

Describe the geographical area that you will service country, region, town? Why did you choose thisarea?

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Total customer potential

Potential customer baseHow many potential customers are there in the geographical area that you intend to operate?

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Typical spending on product/serviceWhat are the customers currently spending on similar products or services to satisfy the need?

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Target CustomersBased on the identified number of potential customers what percentage of these customers will supportyour business?

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CompetitionName your competitors (direct and indirect) and the products and/or service they offer.

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Describe your competitors core business or business activity (including those with which you will notcompete).

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Where is each competitor located?

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What are their geographical areas of operation?

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Give each competitors history, track record and success to date.

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What marketing methods do each use?

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Discuss each competitors strengths and weaknesses.

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Competitive advantageDefend why your proposed business will succeed, what will make it different or better than itscompetitors?

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Strengths and weaknessesObjectively discuss your proposed businesss strengths and weaknesses. Be as thorough as possible.

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Marketing

Costing and pricing

Cost Price

How much will the products cost your business? Total cost includes direct cost from the suppliers and allother costs up to the point where it reaches your premises (take account of the costs associated withshipping, freight, taxes)

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Method of pricingWhat is the estimated cost price and selling price and how was it calculated?

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Sales projections

Unit salesExplain how many units are expected to be sold per month and why you think that it is realistic.

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Increase in salesHow do you expect sales to increase over the short and long term?

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Marketing planExplain what marketing actions will be employed to achieve the expected sales. Below are a fewpossibilities:

Advertising

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Promotion

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Display

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RepresentativesHow frequently will each action be taken and what costs will be associated with each?

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Operations

The entrepreneur(s)Discuss the entrepreneurs background based on the points below:

Work history ____________________________________________________________________________________

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Previous business experience and knowledge

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Technical expertise and knowledge of the product or services you intend to offer

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Key operational functionsDescribe how the business and its various departments will function. Depending on the type of businessand its complexity, the following headings could be used:

Procurement of productAre products manufactured or purchased? How will the business interact with suppliers to acquire rawmaterial or products?

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ManufacturingIf a manufacturing concern, describe the manufacturing process in detail. Indicate the steps, technicalprocess, time taken, skills required, quality control.

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ServiceIf a service is delivered, describe the steps and processes involved.

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Stock control and distributionDiscuss recordkeeping of stock, storage, stock levels, and distribution.

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Marketing and salesThe marketing plan is already described. Now describe how this department will function on a day-to-day basis, including any after sales service.

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Names and job descriptions of remainder of personnel.

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Technology

Technology choiceBriefly describe the technology to be used.

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Applicability of technologyWhy is this technology appropriate for the application?

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Evidence of applicationHas this technology been applied before? Give details of where and when.

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Finance

RevenueWhat is the estimated revenue/income of the business for the next 3 years?

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ExpensesWhat are the estimated expenses of the business for the next 3 years?

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Financial projectionsWhat is the expected profit for the next 3 years?

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Explain what the cash position of the business will be, how much cash it will require before it isproducing positive cash flow and how long it will take.

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Cost of Materials/Direct Labor

Definition of One Unit All amounts are in Naira (N)Cost of Sales Per UnitDirect Labor(Labor Cost per Hour) (A)

Time (in hours) to make 1 unit(B)

Direct Labor Cost Per Unit (A)*(B)

(Naira)Total Direct Labor Per UnitMaterial Description Cost/Total Quantity Cost Per Unit

Total Material Cost Per UnitTotal Other Variable Costs Per Unit (shipping, commission,

packaging)Cost of Sales Per Unit (labor +material+vc (variable costs))

Economics of 1 Unit (For Service and Manufacturing Businesses)

Definition of One Unit Naira (N)

Selling Price per UnitDirect Labor per Unit (if applicable)

Materials per Unit (if applicable)

Total COGS per Unit (B+C)

Total Other Variable Costs per Unit(outgoing shipping, packaging, commissions)

Total Cost of Sales (D+E)

Contribution Margin (A-F)


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Average Monthly Fixed Costs

Type of Fixed Cost Monthly Cost Naira (N)Entrepreneurial Stipend[ Hours X (Minimum Wage + Naira (N)1)]

InsuranceSalaries of EmployeesAdvertisingInterestDepreciation

UtilitiesRentOther Fixed CostsTotal Monthly Fixed Costs Naira (N)

Projected Yearly Income StatementSelling Price Per Unit Naira (N)# of Units SoldTotal Sales (A*B)

Total COGS (COGS per unit * B)Other Variable Costs (Other variable costs per unit * B)

Total Variable Costs (D+E)Gross Profit (C-F)

Yearly Fixed CostsOther Costs/Unforeseen

Total Fixed CostsProfit before Taxes (G-H)Less Estimated Taxes @25% (I * .25)Net Profit (I-J)


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Start Up CostFinancial PlanStartup and Operating NeedsHow much money do you have, and what is the actual amount of money you need to open your business(start-up budget)?

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How much money is needed to keep the business open (operating budget)? Prepare a realistic budget.

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What sources of funding do you anticipate?

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Social Responsibility

(Social responsibility deals with your plan for becoming a responsible corporate citizens. How does your business plan to contribute to economic empowerment of the under-privileged in your community. BillGates has donated billions of dollars to different causes in the World including Africa. You dont have to

be a Bill Gate to develop your local community)

Benefits to the Community

Economic DevelopmentDescribe jobs created by the business

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How will purchases for the business help other local businesses?

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Any additional information

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Community Development

How will the company's goods/services help the community?

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Human Development

How will the business help its employees?

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Supporting Documentation

Attach any document that you feel could be useful to motivate any particular argument or that cancontribute towards a better understanding of the business proposal. In particular, please attach:

Copy of permits, contracts and/or agreements already finalised;If an existing business:1. Financial statements for last 3 years;2. Management accounts not older than 3 months.

business plan manual pdf

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