the business plan
TRANSCRIPT
HELPFUL HINTS FOR WRITING
A BUSINESS
PLAN! ……………
TEA – SHOPTALK!
8/15/2015
ALADESURU W. E ADEWALE www.aladesuru-walter-adewale.strikingly.com
THE BUSINESS PLAN!THE BUSINESS PLAN!THE BUSINESS PLAN!THE BUSINESS PLAN!
DEFINATION: “ A document specifying the business details
prepared by An Entrepreneur in preparation for opening a new business.”
Once an entrepreneur is inspired by a new-business idea, careful planning is crucial. A business plan is a document specifying the business details prepared by An Entrepreneur in preparation for opening a new business.
Planning forces the entrepreneur to carefully think
through all of the issues and problems associated with starting and developing the business.
Most entrepreneurs have to borrow money, and a
business plan is absolutely critical to persuading lenders and investors to participate in the business.
Studies have shown that small businesses with a
carefully thought out, written business plan are much more likely to succeed than those without one.
The details of a business plan may vary, but
successful business plans generally share several characteristics:
A Successful Business Plan must: Demonstrate a clear, compelling vision that creates an
air of excitement. Provide clear and realistic financial projections.
Give detailed information about the target market. Include detailed information about the industry and
competitors.
Provide evidence of an effective entrepreneurial management team.
Pay attention to good formatting and clear writing. Keep the plan short – no more than 50 pages long. Highlight critical risks that may threaten business
success. Spell out the sources and uses of start-up funds and
operating funds. Capture the reader’s interest with a killer summary.
NOTE:
The business plan should indicate where the product or service fits into the overall industry and should be drawn on the following three [3] levels of strategy in organizations:
Corporate-Level Strategy: What business are we in?
CORPORATION
Business-Level Strategy: How do we competes?
IT UNIT
ADMIN UNIT
BUSINESS DEV. UNIT
Functional-Level Strategy: How do we supports the business-level strategy?
FINANCE
MARKETING
FACILITATING
GRAFIX DESIGNING
THE THREE LEVEL OF STRATEGY
Corporate-Level Strategy: The level of strategy concerned with the question
“what business are we in?” Pertains to the organization as a whole and the
combination of business units and product lines that makes it up.
Business-Level Strategy: The level of strategy
concerned with the question “How do we compete?” Pertains to each business unit or product line within the organization.
Functional-Level Strategy: The level of strategy
concerned with the question “How do we support the business-level strategy?”
Pertains to all of the organization’s major departments.
TEATEATEATEA---- SSSSHOPTALK!HOPTALK!HOPTALK!HOPTALK!
________________________________ HELPFUL HINTS FOR WRITING
A BUSINESS PLAN
THE SUMMARY
No more than three pages!
This is the most crucial part of your plan because it must capture the reader’s interest. WHAT , HOW , WHY , WHERE , etc., must be summarized. Complete this part after the finished business plan has been written.
THE BUSINESS DESCRIPTION SEGMENT
The name of the business!
A background of the industry with history of the company [If any] should be covered here. The potential of the new venture should be describe clearly. Any unique or distinctive features of the venture should be spelled out.
THE MARKETING SEGMENT
Convince investors that sales projections and competition can be met!
Market studies should be used and disclosed. Identify target market, market position, and market share.
Evaluate all competition and specifically cover why and how you will be better than the competitors.
Identify all market sources and assistance used for this segment.
Demonstrate pricing strategy, since your price must penetrate and maintain a market share to
produce profits.
Thus the lowest price is not necessarily the “BEST” price.
Identify your advertising plans with cost estimates to validate the proposed strategy.
THE RESEARCH, DESIGN, AND DEVELOPMENT SEGMENT
Cover the extent of and costs involved in needed research, testing, or development!
Explain carefully what has been accomplished already [prototype, lab testing, early development]. Mention any research or technical assistance provided for you.
THE MANUFACTURING SEGMENT
Provide the advantages of your location [zoning, tax laws, and wage rates].
List the production needs in terms of facilities [plant, storage, office space] and equipment [machinery, furnishing, supplies].
Describe the access to transportation [for shipping and receiving]. Explain proximity to your suppliers. Mention the availability of labor in your location.
Provide estimates of manufacturing costs---be careful; too many entrepreneurs underestimate their costs.
THE MANAGEMENT SEGMENT
Provide resumes of all key people in the management of the venture!
Carefully describe the legal structure of the venture [sole proprietorship, partnership, or corporation]. Cover the added assistance [if any] of advisers, consultants, and directors. Provide information on how everyone is to be compensated [how much, also].
THE CRITICAL-RISKS SEGMENT
Discuss potential risks before investors point them out.
Some examples follow:
Price cutting by competitors.
Potentially unfavorable industry-wide trends.
Design or manufacturing costs in excess of estimates.
Sales projections not achieved.
Product development schedule not met.
Difficulties or long lead times encountered in the procurement of parts or raw materials.
Large-than-expected innovation and development costs to stay competitive.
Name alternative courses of action.
THE FINANCIAL SEGMENT
Provide statements.
Describe the needed sources for your funds and the uses you intend for the money.
Provide a Budget.
Create stages of financing for the purpose of allowing evaluation by investors at various points.
THE MILESTONE SCHEDULE SEGMENT
Provide a timetable or chart.
Provide a timetable or chart to demonstrate when each phase of the venture is to be completed.
This shows the relationship of events and provides a deadline for accomplishment.
"Once you have momentum, you have to keep it moving. Latch onto a business trend that has great momentum.
Then, partner with others to set big goals and let the momentum lead you to higher and higher levels"...
--Walter A. Aladesuru
Prepared By:
Aladesuru Walter Adewale Brand Development Entrepreneur
Walter is the CEO/Brand Partner for THE ENTREPRENEUR ANNEX [TEA].
This is to introduce to you, The Entrepreneur Annex: “A platform for Entrepreneurs in the creative and self-help industries.”
Our sole aim is to help and strengthen entrepreneurs; expand markets, build and network.
@TEA, We need and engage Entrepreneurs with great ideas and differ forms of creativities, their focus, determinations and faith, to be in business.
The Entrepreneur Annex is a Non-for-Profit, Non-Political and Governmental or membership based; it’s
a BUSINESS DEVELOPMENT SERVICES PROVIDER with special focus on the creative industry.
We are committed to building skills; expanding networks and helping entrepreneurs find new markets.
We are using this medium to introduce to you Aladesuru Walter Adewale who is our coordinator. He has been with The Annex these years and he is worthy of our representation.
He was recently nominated as one of the 1000 entrepreneur’s in Africa for The Tony Elumelu Entrepreneurship Program under the management of Tony Elumelu Foundation. [#TEEP2015]
To become a financial partner in order to make our dreams a reality, forge a partnership or for sponsorship, please contact us on the following:
E-mail us on: [email protected]
Call: +234-909-3541-175
Like our fans page for tips and update articles: www.facebook.com/entrepreneurannex
Follow us on Twitter: @preneur_annex
Instagram: #entrepreneur_annex
http://preneurannex.tumblr.com
FOR:
Counseling, Coaching, Mentorship, Training or Invitation for Public Speaking in Conferences, Programs, Schools, Corporate firms, Government Para-citers;
Brand, Business and Personal Development.
Contact:
Aladesuru Walter Adewale Twitter: @AladesuruA.
Instagram: #AdewaleAladesuru
E-mail: [email protected]
Whatsapp: +234-803-5856-753 +234-705-1886-884
Ng.linkedIn.com/pub/Aladesuru-walter-adewale/51/118/93/ Skype: Aladesuru_Adewale
www.facebook.com/adewalewalteraladesuru
Website: http://aladesuru-walter-adewale.strikingly.com