Preparing A Business Plan

Objectives

By the end of this topic, you should able to understand:

1) Definition a business plan

2) the important of BP

3)Major elements of a BP

4) BP Process

• Business Plan: a written document that explains and analyses an existing or proposed business venture

Important of BP

Increase opportunity for success

Develop mission business

Determine the main competitors

Determine the right way of managing the business

Increase the stakeholders confidence

Determine barriers in business

As a performance tool

Elements of a Business Plan

1. Marketing 2. Finance 3. Operation

Elements of a BP

Title page

Executive summary

Background

Marketing

Operations and production

Financial

Appendix

1) Title page

2) Executive summary- Introduction segment or key of features• Business ideas and goals• Marketing• Operations• Finances

3) Background• Mission statement• Company history• Business goals

4) Marketing• Market research and analysis• Target market (customers)

identified• Market size and trends• Competition• Estimated market share• Marketing plan• Market strategy-sales and

distribution• Pricing• Advertising and promotions• Evaluation of marketing

 

5) Operations and Production• Legal and licensing requirement• Management details- Provide

background details about owner or managers

• Organizational structure and strategy

• Professional advisors- Provide name and contact details

• Insurance and security needs• Business premises• Plan and equipment• Production process• Critical risks and contingency

plans- strategy

6) Financial • Basic assumptions and

information– Useful to provide details about

bank accounts that business operate

• Financial forecast– Profit and loss– Cash flow– Break even analysis– Cost controls– Budgeting plans

• Analysis of finance forecasts– To conduct ration analysis or other

pertinent calculations and usually organized on a monthly basis

7) Appendix• Useful information: resume,

competitors promotional materials, maps, floor plan of the business premises, reference sources and key statistics

The Business Planning Process

Set preliminary goals

Conduct initial secondary research

Confirm goals

Conduct subsequent

detailed research

Develop draft BP

Critically assess the

proposed planimplement

Evaluate the plan

Thank You…