1. BUSINESS PLANNING
AHMED JAMAL IDDRISU MDPI ACCRA TEL:

2. OBJECTIVES
By the end of the presentation participants will be able to:
Point out importance of planning in enterprise development
List benefits associated with business planning
Mention areas that entrepreneurs can focus when preparing business plans
List format and content of business plan for enterprises

3. BASIC STEPS IN BUSINESS PLANNING
“Give a man a fish and you will feed him for a day. Teach a man to fish and you will feed him for a lifetime. Teach a person to start a fish farm and you will feed a community for a lifetime”. Nickles, McHugh, McHugh (2002)

4. PLANNING
Planning is one of the most important functions of an entrepreneur and involves the following:
Anticipating and preparing in the present to face conditions that may arise in the future such as change, uncertainty and risk

5. PLANNING
Making decisions about vision and mission statements, policies, procedures and setting objectives to achieve the strategic goals of the business;
Deciding in advance what to do, who is to do it, how to do it, where to do it, and when to do it.

6. BUSINESS PLANNING Business planning therefore involves:
Identifying and forecasting the company’s future business and market opportunities, and;
Organizing, through appropriate strategies and actions programmes, to reach the market and exploit the opportunities.

7. BUSINESS PLAN
The outcome of every planning function is a PLAN, which is a written document that specifies future courses of action that an organization undertakes to achieve its competitive edge in the market.

8. BUSINESS PLAN
A BUSINESS PLAN is a detailed written statement (document) that describes
The nature of the business
The target market
The advantages the business will have in relation to competition
The resources needed
The qualification of the owner(s)

9. WHY IS PLANNING IMPORTANT IN ENTERPRISE DEVELOPMENT?
What business (product/service) must be engaged in?
How to see the business outlook (state and features) in one, two, five or ten years from the present time?
What will be done (strategies) to get the business there?

10. WHY IS PLANNING IMPORTANT IN ENTERPRISE DEVELOPMENT?
Who (staff, customers, suppliers, government agencies and officials, etc) will help in getting the business there in the future?
When will activities and tasks be performed (every day, weekly, monthly, yearly, etc)?

11. WHY IS PLANNING IMPORTANT IN ENTERPRISE DEVELOPMENT?
Where will the activities and tasks be performed (Accra, Kumasi, Tamale, London, Lagos,);
How much will it cost to start up the enterprise, its profit levels over the years, etc?
What is expected returns and risks associated with the Business?, etc

12. CONTENT OF BUSINESS PLAN
The length and sequence of contents in a business plan vary with the complexity of the proposed venture.
However, certain key elements are always needed to describe WHY, HOW and WHEN economic success will be achieved.

13. OUTLINE OF A BUSINESS PLAN
EXECUTIVE SUMMARY
Short description of the business, major goals and objectives, economic benefits, amount of money required
Vision
Mission statement

14. COMPANY BACKGROUND INFORMATION
Registration, promoters, contact information, etc
Brief description of business activities since commencement

15. PRODUCTS AND SERVICES Core competencies Products or services
Product attributes and how they benefit the customer
Technology
Strategic objectives
Routes to success

16. MARKET ANALYSIS Market size Market growth Market segments
Targeting and positioning
Customer dynamics
Customer buying decisions

17. MARKET ANALYSIS Political dispensation Economic trends Legal issues
Environmental factors
Supply and distribution channels

18. MARKETING PLAN Target market and how to reach it Competitor analysis
Provide list of potential customers

19. OPERATIONAL PLAN Product development process key logistics
Description of the equipment required
Description of the production process
Quality control, etc

20. FINANCIAL PLAN Important Assumptions Investment plan Sales forecast
Forecast Income and Expenditure Statement
Projected Balance Sheet
Forecast Cash Flow statement
Key Financial Indicators
Break Even Analysis
Managerial Decisions

21. THE MANAGEMENT TEAM Management and Organization Board of Directors
Management structure
Key personnel
Organogram/ organizational structure

22. IMPORTANCE/BENEFITS OF A BUSINESS PLAN
Raising capital or seeking partnership with an investor (s)
Guiding the growth of the business to achieve higher levels of profitability, market share and competitiveness
Assess the performance of the organization periodically

23. IMPORTANCE/BENEFITS OF A BUSINESS PLAN
Make judicious use of company’s resources such as time, money, staff and their skills, customers, suppliers, equipment, etc.
Concrete statement of purpose, which is used to communicate with staff in a step-by-step agenda for achieving the vision and mission of the business.

24. CONCLUSION
‘Government can't create wealth, but it can create the conditions for private enterprise to flourish’. Bill Owens

25. END OF PRESENTATION
THANK YOU FOR LISTENING. COMMENTS, QUESTIONS AND SUGGESTIONS