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 pageExecutive summaryBackgroundMarketing Operations and production FinancialAppendix

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 plan implement Evaluate the plan

Thank You…