3 A Business Plan is…a blueprint of how the business should look like in your mind.“tell a story” and explain how thebusiness will achieve its objectivesin a coherent manner. The “story”should focus on customer’s needs.To identify the market, its growth prospects, target customers and main competitors.
4 A Business Plan is…Based upon a credible set of assumptions to which the success of the business is most sensitive.To identify the risks facing thebusiness, the potential downsidesand actions should be taken tomitigate the risks.To describe its differences from its competitors: its source of competitive advantage and how it will be sustained in longer term.
5 A Business Plan is…To describe the experience and track record of the management team.To identify the funding being sought from potential investors.
6 A Good Business Plan Checklist Tells a coherent, consistent and customer focused story;Clearly defines market, its prospects, the customers, suppliers and competitors;Contains credible business planning assumptions and forecasts;Describes how business will achieve sustainable competitive advantage;Identifies assumptions to which business is most sensitive, the potential risks and any mitigating actions;
7 A Good Business Plan Checklist Is supported by those that must implement it;Contains description of individuals involved in managing the business;Identifies funding requirement for the business.
9 A Business Plan should… Focus on market growth andthe sources of sustainablecompetitive advantage forthe business.Emphasis on strategy, tactics and financial projections, rather than on operational detail.
10 A Business Plan should… Provide basis for creation of business process, job descriptions and operational budgets.Provide basis for monitoringand analyzing performance.
11 A Business Plan in Another Situation A business unit in a large organization will prepare business plans in order to gain approval for new business initiatives from senior management and the board. However, the following questions may be asked.Is the plan consistent and supportive of the business’s overall strategy?What is the impact on overall financial performance of the business in terms of revenue growth and profitability.
12 A Business Plan in Another Situation Will adopting the business plan require additional fundraising?Does the business plan reinforce the position of the business’s brand?Is the business plan feasible and within the scope of the organization’s capabilities?Will adoption of this business plan have impact on other areas of the business?What alternative opportunities could be pursued?
13 A Business Plan Template Executive SummaryCurrent business situationVision, mission, objectivesDefinition of the current business and its marketCurrent state of the businessCorporate history, major events and past financial performanceProducts and servicesCurrent business and market positionStrategy and sources of sustainable competitive advantageCore competenciesCustomer acceptanceCurrent business organization and outline business infrastructureSummary financial forecastsMoney required, timing and deal on offerStrategic analysisBasic business informationPolitical, economic, social and technological analysis and impactsTitleKey differentiators and unique selling pointsContentsVRIO analysisContact informationDocument controlConfiguration of resourcesProfessional advisersValue add analysisDefinitionsLegal structure and corporate data
14 A Business Plan Template Value add analysisStrategic planValue chain analysisVision, mission and objectivesValue systemSources of sustainable competitive advantageResource auditCompetitive positionOperations resourcesMarketing positioningHuman resourcesBrand strategyOrganizational resourcesPortfolio strategyFinancial resourcesBusiness designIndustry life cycleIndustry structureMarketing planCompetitor analysisMarketing segments, size and growthSWOT analysisDescription of customers and customer needsTarget market segmentProduct positioning and value propositionMarketing mix
15 A Business Plan Template Description of products and servicesEngineering and design supportPricing and discountingQuality control plansAdvertising and promotional plansStaffing requirementsChannel and distribution strategySources of supply of key materialsGuarantees and warrantiesAfter-sales service and customer careResearch and developmentComparison with competitionObjectivesPerformance and economicsOrganizationMarketing forecastsPlansResourcesOperations/productionPhysical locationManagement and organizationMake or buy considerationsOrganization chartThe production processTop managementFacilities, equipment and machineryManagement’s ability to deliver the planScalability of operations
16 A Business Plan Template Corporate governance and shareholder controlDiscounted cash flowStaffingPaybackRecruitmentBreakevenTrainingBenchmarksLabour relationsSensitivity analysisOffice space and amenitiesEmployment and related costsFinancingSummary of operations prior to financingForecasts and financial dataCurrent shareholder loans outstandingSummary of performance ratiosFunds required and timingSales forecastUse of proceedsAssumptions underpinning financial forecastsThe deal on offerProfit and loss account (income statement)Anticipated gearing and interest coverBalance sheetExit routes for investorsCash flow statementEvaluation criteria and valuation
17 A Business Plan Template Risk analysisAppendicesRisk overviewGlossary of termsLimiting factorsDetails of market researchCritical success factorsConsultants’ reportsAlternative scenarios and strategic responsesProduct specificationsSpecific risks and risk-reduction strategiesMarketing collateralOrders in handBusiness controlsOrganization chartsCurricula vitaeInformation technologyDetailed financial forecastsFinancialTechnical dataSales and marketingOperationsDetails of patents, copyrightOther controls
18 Layout and Style Document should be: Attractive Impressive Easy to readGeneral appearance: logo, contact details, etc.Page layout: A4, 12 pt, ring bind, etc.Writing style: Clear, concise, evidence, etc.
19 Getting Started Basic business information: Title Content Contact informationDocument controlProfessional advisersDefinitionsLegal Structure and corporate data
20 Getting Started Legal structure and corporate data: Full name of businessCorporate status of businessIts capital structureAddress of registered officeRegistration numberHead office address
21 Getting StartedExecutive Summary-The most important section: The 1st section to be read it must engage readers and excite them about the potential of the business idea. It should NOT be an introduction to the business plan; it should be most carefully written of all the sections. It contains:Current state of the businessProducts and services and the customersSources of sustainable competitive advantageShareholder objectives and business strategySummary financial forecastsDecision or funding being sought