Presents

The Business Plan

Business Planning
Mandatory
Competency

Level
1
BU113: Foundations of

Business Administration

Mandatory Competencies

Business Planning

Demonstrate knowledge and understanding of how business

planning activities contribute to the achievement of your
corporate objectives

Principles of law Parliament, legislation, tort,

common law etc
Short / long term strategies
Level
Market analysis
Five year plans
Business support services administration,
secretarial, HR, IT etc.
Staffing levels recruitment / turnover
Employment law
Employment policy

-1

Business Planning
WHERE
YOU WANT
TO BE

WHERE
YOU ARE

Business Planning

Why ?
What ?
How ?

Business Planning
Future
Why

NEW
NOW
NOW

What

How

Business Planning

Why ?

Purpose
Explain the concept of the proposed
business
Analyse the market
Present strategy
Outline the projected development of the
business
Define capital needs and procurement
Project financial performance
Present managements credentials

Business Planning

What ?

Business Plan - definition

A document in which the entrepreneur summarises business

strategy for the proposed new venture and how that strategy will be
implemented.
A detailed description of the proposed business, including types of
customers, competitors, and facilities needed for production
Includes 3 functions of business:

Management, Marketing, and Finance

Business Planning

How ?

Business Planning Analysis Tools

SWOT Analysis

STRENGTH
WEAKNESS
OPPORTUNITY
THREATS

PEST Analysis

POLITICAL
ECONOMICAL
SOCIAL
TECHNOLOGICAL

Where will we be in
the future ?

Common factors for success

1.

2.

3.
4.

Hard work, drive / motivation,

and dedication
Market demand for product /
service
Managerial competence
Luck

Common factors for failure

1.

2.
3.
4.

Managerial incompetence or
inexperience
Negligence
Weak control systems
Insufficient capital

How do we get there ?

Where will we be in the future ?

Strategic Planning:
Strategic Planning is the
managerial process of
developing and maintaining a
strategic fit between the
organisation's objectives and
resources and its changing
market opportunities.
Know your enemy, know yourself, and
your victory will not be threatened.
Know the terrain, know the weather, and
your victory will be complete.

Who might use the Business Plan?

Investors
Owners of the company / Management
Banks or other lenders (creditors)
Potential suppliers

The Cover Sheet

Company name
Address of the head office
The Management Team
Phone numbers
Note:
Mark it Confidential

Business Plan - Format & Components

State your Companys mission statement

Set out the How and What of Where you

want to be and by When through plans for
different areas of business
Marketing
Delivery
Financial
Management

Provide supporting documents

Mission Statement

A mission statement is a brief description

of a companys fundamental purpose.
A mission statement answers the questions,

Why do we exist?
What do we hope to achieve in the future?

The mission statement articulates the companys moral /

ethical position, public image, the target market,
products / services, the geographic domain and
expectations of growth and profitability.

Mission - Examples

It is the mission of X College to contribute through higher

education to the enhancement of the human person and to the
advancement of human culture in the light of the faith.

The Home Depot is in the home improvement business and

our goal is to provide the highest level of service, the broadest
selection of products and the most competitive prices. Eight
core values include the following:

Excellent customer service

Taking care of our people
Giving back
Doing the "right" thing
Creating shareholder value
Respect for all people
Entrepreneurial spirit
Building strong relationships

Business Plan - Management

Type of organisation /
form of business
ownership
Organisation chart
Management team

Experience
Skills
Roles in the business
Supporting documents:
Resumes

XYZ Company

Business Plan - Marketing

Product / Service

Key characteristics, uniqueness

Picture, design / model
Supplier
Amount of inventory to be ordered

Target market

Users - demographics
Benefits
Economic / social / cultural characteristics
Projected sales (revenue): calculated

Business Plan - Marketing

Competition

Who?
Strengths
Weaknesses

Business Plan - Marketing

Price
Pricing

strategy

Pricing

strategy vs. competition

Promotion
Promotional

strategy: developing demand for product

Place / distribution
Getting

the product from production to the

consumer

Business Plan - Finance

Concerns of investors
Demand for product
Management characteristics and experience
Innovation
Track record
Rate of return
Amount of risk
Financial projections
Outlook for competitiveness of business
Growth curve of business
Future plans

THANK YOU

Supporting documents

List of Shareholders: Attach a table with the

information about your shareholders
investment.

name
contact information
number of shares invested
percent ownership in the company based on
the number of shares owned

Resumes of each manager

Company logo
PowerPoint slides in handout form