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BUSINESS PLAN
TABLE OF CONTENTS

BDS F13

1. Back Ground (Overview) 2. Organisational and Management Structure 3. Operational Plan 4. Marketing Plan 5. Financing Structure 6. Internal Analysis 7. External Analysis 8. Risk Analysis. 9. Financial projections (P&L, Cash flow & Balance sheet) 10. Implementaion plan

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1. Background Information Business name Nature of business Date of incorporation Business contacts (tel, fax, and email. Brief Profiles of Share holders. Project Concept(objectives -Project objectives- local production, export -Clearly articulate the value proposition to the customers. -Summarized history of major events since inception- e.g. started as sole proprietorship, incorporation, merger/acquisition, change in ownership to Current status, etc. -Mission, vision and objectives of the business, philosophy. 2. Organisational and Management Structure A) Organogram B) Management structure Name Qualifications Age Nationality shareholding% Position Experience

Comments Support functions-accounting and controls, audit, IT, Corporate Governance, Training and employee welfare, Quality Assurance

3. Operational Plan a) Description of the operation of the business Location: owned/rented/leased. Source, cost, quality and availability of raw material supply and relations with support industries/linkages Source/suppliers of equipment, other technical support Description of production/manufacturing process Plant size/layout in comparison with other known plants. Reason for choice of technology: labour intensive/capital intensive. Project location in relation to suppliers, markets, infrastructure and manpower

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Infrastructure/utilities availability (roads, power, telephone, water, security, etc) Comments on special technical complexities and need for know how and special skills Production plan Processes Production Capacity(How much are you currently producing, what is the Production capacity) Annual production

capacity Production per day Installed capacity Current production capacity Optimum production capacity

4. A)

Marketing Plan Market Description of the market for the product or service, Benefits that the products/services meet. Market segment targeted by the product/services. Key customers and demand levels. Market statistics on existing and potential demand. Projected volumes, unit prices, sales objectives and estimated market share of the business. Marketing strategies, potential users and distribution channels. Present sources of supply for product. Competitive advantage of project, market competition including the possibility of substitutes. Competitive Strategies o Product Strategyo Promotion Strategy o Pricing Strategy o Distribution/Place Strategy o Critical success factors for the business Financing Structure Financial Projections and Funding Request Proposed Financial structure indicating expected source and terms of equity and debt financing Type of financing required, amount and terms Proposed security Key operating and financial assumptions.

5. A)

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b) Security to be Provided Description/nature, location of assets Current valuation of the security and any existing charge? Detail the nature of security offered such as property, other assets and guarantees. Remember assets offered as security should not be encumbered by other financiers

Description

Age

Original cost

Open Market/Book Value

Estimated Sales

Forced

Immovable property-plot number/Ward Machinery& Equipment Motor vehicles Livestock Bank guarantee Any other guarantee Life Insurance Policy/Surrender value Other 6. Internal Analysis (Strength and weaknesses) 1.What is the business going to do better than its competitors 2.What is the businesss strong points 3.What is the businesses weak points 4.How can the business increase its sales 5.What can make the business fail or go down

7. External Analysis (Analysis using Political, Economic, Social, Technological, Legal & Environmental factors, opportunities and threats) 8. Risk & Sensitivity analysis. What could stop me from succeeding Is my machinery insured Am I insured Can somebody in my family take over if am ill Can I get spares for my machinery What will stop me from selling the amount I said I will sell Does the price of my stock go up quickly Can I get enough people into my business to do the work

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9. Financial projections (P&L, Cash flow & Balance sheet) Key assumptions: Projected demand levels and market share, Estimated total project cost- land, construction, installed equipment and working capital Projected 5 year Profit and Loss accounts: (First year month-by month projections) year projected financial performance with underlying assumptions (Profit & Loss Account, Balance sheet, Cash flows, return on investment) Critical factors determining profitability. ProjectedProfit&LossAccount Year1 Trading TotalSales Stockinhandat beginningofthe period TotalPurchases Totalstockathandof theperiod GrossProfit Totalexpenses Depreciation LoanRepayment Incometaxpaid NetProfit ASSUMPTIONS SalesUnits Salesprice Variablecosts Overheadexpenses Depreciationrates used Taxratesused Otherassumption Year2 Year3 Year4 Year5

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ProjectedBalanceSheet

Year1 Year2 Year3 FixedAssets Lessaccumulated Depreciation Netfixedassets Investments Currentassets Stock Debtors Cashandbank Totalcurrentassets Currentliabilities Creditors Taxation Loanscurrentportion Bankoverdraft TotalCurrentliabilities Netcurrentassets Totalnetassets Capitalemployed Equity Sharecapital Retainedearnings Capitalreserve Shareholdersloans Shareholdersinterest Grants Longtermliabilities Loans Deferredtax Totalcapitalemployed

Year4

Year5

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CASHFLOWPLAN YEAR200 Jan CashInflow Sales Otherincome (e.gint.earned,sale ofassetorproperty) Totalcash inflow(A) CashOutflow Land Plant&machinery Equipment Vehicles Otherassets Operating/non operatingcosts Salaries&wages Electricity Utilities Water Telephone Electricity Tax Salestax Incometax VAT Financingcosts Loanrepayments Interestonoverdrafts Othercosts Fuel Insurance Rent Rawmaterials Marketing Totalcash Outflow(B) Netcashflow(AB) Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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10. Implementaion plan N.B: Promoters are required to give an implementation schedule of the project. Approval of the loan may elapse after a specified time by the financier. When will the project start What is the first thing that must happen When must it happen List the activities which must happen after that with reasonable dates and names of responsible people. Provide a Gantt chart.

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