1. BUSINESS PLAN

2. Objectives of the Session
The main goal of this session is to familiarize the trainees with the concept of a business plan. This session hopefully will help learners to obtain an overall view about what means a business, what it looks like and how it works. It also pursuit to assist learners understand the most important elements of a sustainable business plan. 2

3. What is a business plan?
Business plan: is a written document that outlines a firm’s goals and how it plans to achieve these goals. The outline also encompasses several other aspects of a company’s future agenda, and can serve as a tool for internal decision-making, or as a business proposal to pitch to potential investors. 3

4. Some key questions to be answered in the business plan:
Is the economy growing or is it in recession?
What about unemployment rate?
Taxes, transportation, trade, access to suppliers and customers?
How about the labor market, how easy will it be to attract talent?
How hard will it be to procure funds?
What are the main technological trends?

5. IMPLEMENTATION ROADMAP RISK ANALYSIS
A good starting point is to give your business plan a 6-section structure:
THE TEAM
EXTERNAL ENVIRONMENT
THE BUSINESS MODEL  
FINANCIAL ANALYSIS
IMPLEMENTATION ROADMAP 
RISK ANALYSIS

6. 1. The Team
The main question at this part of the business plan should aim to answer is why you?
Team is an extremely critical issue, because the organization you build is very much derives its energy from the creator and those working for the organization. It would be useful to start by detailing your skills and qualities and those of your team. Often, investors will be as interested in who you are, what you bring to the table and whether you are capable of running a business.

7. 2. External Environment
The surrounding conditions in which the business operates are called the business environment. This can be divided into two broad categories: external and internal. These environments consist of various stakeholders. The external environment includes those factors over which the business has little control, such as economic conditions, government policy, competitors, technology and so on. The internal environment, or the micro environment, includes those factors over which the business has some control, such as employees, managers, management style, corporate culture and company policies. The factors that make up the business environment are continually undergoing change, and act as pressures on the operations of a business.

8. External Environment / Macroeconomic Forces
Let’s now take a closer look at each element that consists PESTEL Analysis
External Environment / Macroeconomic Forces
Political
Economic
Social
Technological
Environmental
Legal
These can be political factors or policy decisions that affect the operating business environment
These are issues affect the purchasing power of customers and other businesses
These are factors that affect customer needs and potential markets
These are innovative developments or trends that might affect markets
These are factors that may affect influence marketing strategy and businesses
The legal factors have a great influence on our pop-up stores market.
Tax policy
Government/ political stability
Regulation
Infrastructure
Trade restrictions
Funding/ Grants
Economic growth
Interest rates
Exchange rates
Inflation
Monetary policy
Employment/ Unemployment rates
Supply/Demand
Income
Demographic/ cultural changes
Population growth rate
Social attitudes
Lifestyle factors
Education
Culture
Media
Research & development
Automation
Technology
Innovation
Emerging technologies
Information & communication
Web/ Internet of things
Global warming
Pollution
Climate change
Energy waste
Natural resources reserves
Quality of water
Laws
Taxation policies
Employment laws
Industry regulations
Health & safety

9. 3. Business Model
Business model is considered as a description of means and methods a firm employs to earn the revenue projected in its plans. It views the business as a system and answers the question, “How are we going to make money survive and grow”.

10. HOW to put your business idea into business model?

11. THE VALUE PROPOSITION
The collection of products and services a business offers to meet the needs of its customers. The value proposition provides value through various elements such as newness, performance, customization, design, brand/status, price, cost reduction, risk reduction, accessibility, and convenience/usability.
The value proposition may be:
Quantitative – price and efficiency
Qualitative – overall customer experience and outcome

13. CUSTOMER SEGMENTS The different types of customer segments include:
Mass Market: there is no specific segmentation for a company that follows the Mass Market element as the organization displays a wide view of potential clients.
Niche Market: customer segmentation based on specialized needs and characteristics of its clients.
Segmented: the business may further distinguish its clients based on gender, age, and/or income.
Diversify: a business serves multiple customer segments with different needs/problems and characteristics.

14. CHANNELS
A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective. An organization can reach its clients either through its own channels (store front), partner channels (major distributors), or a combination of both.

16. CUSTOMER RELATIONSHIPS
Personal Assistance: Assistance in a form of employee-customer interaction. Such assistance is performed either during sales, after sales, and/or both.
Dedicated Personal Assistance: The most intimate and hands on personal assistance where a sales representative is assigned to handle all the needs and questions of a special set of clients.
Self Service: Here, an organization provides the tools needed for the customers to serve themselves easily and effectively.
Automated Services: A system similar to self-service but more personalized as it has the ability to identify individual customers and his/her preferences.

17. How does the company make money??
REVENUE STREAMS
Asset Sale – (the most common type) Selling ownership rights to a physical good
Usage Fee – Money generated from the use of a particular service
Subscription Fees – Revenue generated by selling a continuous service
Lending/Leasing/Renting – Giving exclusive right to an asset for a particular period of time
Licensing – Revenue generated from charging for the use of a protected intellectual property
Brokerage Fees – Revenue generated from an intermediate service between 2 parties
Advertising – Revenue generated from charging fees for product advertising.

23. KEY RESOURCES
The resources that are necessary to create value for the customer. They are considered an asset to a company, which are needed in order to sustain and support the business. These resources could be human, financial, physical and intellectual

24. KEY PARTNERS
The question is, who are the key partners and suppliers needed to make the business model work?
In order to optimize operations and reduce risks of a business model, organization usually cultivate buyer-supplier relationships so they can focus on their core activity. Complementary business alliances also can be considered through joint ventures, strategic alliances between competitors or non-competitors.

25. Characteristics of Cost Structures:
Fixed Costs – Costs are unchanged across different applications. e.g. salary, rent;
Variable Costs – These costs vary depending on the amount of production of goods or services. e.g. music festivals
Economies of Scale – Costs go down as the amount of good are ordered or produced.
Economies of Scope – Costs go down due to incorporating other businesses which have a direct relation to the original product

26. Please click on the link below to learn step by step about Business Model which is a useful business tool.

27. Which is the purpose of the financial section of a business plan??
4. Financial Analysis
Which is the purpose of the financial section of a business plan??
To attract funding (impact investors, banks, business angels, donor grants etc.).
To show stakeholders the viability of your enterprise.
But the most important reason to compile this financial forecast is for your own benefit, so you will be able to understand how you project your enterprise will do.

28. Sales Scenarios and projections
Expected turnover?
Expected non-commercial income?
Expected profit?
How will you achieve your expected turnover, non-commercial income and sustainability?
Operating Costs
A business’s operating costs are comprised of two components, fixed costs and variable costs.
Fixed costs
Variable costs
Income
Grants
Donations
Sales
Sponsorship
Cash flow projections

29. Breakeven Analysis
Break-even analysis is a formula used to determine how much income or revenue or sale volume a project, program, or an activity has to generate in order to start making a profit
The analysis tell us:
How many units must be sold to break even
What unit sales must be achieved to turn a profit
Using breakeven analysis can help you assess the viability of your business idea.
Once you have calculated the breakeven point you will have to take a view as to whether you can achieve the sales required for your business to work.

30. Q = F / (P – v) Breakeven Analysis Diagram Q: Breakeven quantity
F: total fixed costs
v: Variable cost per unit
P: selling price or inflow per unit

31. 5. DEVELOPING YOUR BUSINESS PLAN The steps you have to take
Implementation roadmap
To sum up:
Define your vision
Set your objectives and goals
Define your unique selling proposition
Know your market
Know your customer
Research the demand for your products/ business
Set your marketing strategy
Make financial anaylsis
Implement

32. 6. Risk Analysis
A helpful instrument to analyze limiting factors and obstacles as well as critical success factors is to us a SWOT analysis which often is done at the stage of business model design and development.
Risk
Strategy/ Scenario