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BUSINESS PLAN TABLE OF CONTENTS BDS F13 1. Financial projections (P&L. Financing Structure 6. Organisational and Management Structure 3. Operational Plan 4. Cash flow & Balance sheet) 10. Risk Analysis. Back Ground (Overview) 2. 9. External Analysis 8. Internal Analysis 7. Marketing Plan 5. Implementaion plan F:CDD:42  Page 2 of 9  Rev 0 .

fax. export -Clearly articulate the value proposition to the customers. audit.1. incorporation. Background Information · Business name · Nature of business · Date of incorporation · Business contacts (tel. 2. change in ownership to Current status. -Mission. philosophy. · Project Concept(objectives -Project objectives. markets. Reason for choice of technology: labour intensive/capital intensive. other technical support Description of production/manufacturing process Plant size/layout in comparison with other known plants. and email. infrastructure and manpower F:CDD:42  Page 3 of 9  Rev 0 . Project location in relation to suppliers.local production. cost. · Brief Profiles of Share holders. Source. Corporate Governance. Organisational and Management Structure A) Organogram B) Management structure Name Qualifications Age Nationality shareholding% Position Experience Comments · · · · · Support functions-accounting and controls. -Summarized history of major events since inception. etc.g. Quality Assurance 3. merger/acquisition. Training and employee welfare. Operational Plan a) Description of the operation of the business § § § § § § § Location: owned/rented/leased. quality and availability of raw material supply and relations with support industries/linkages Source/suppliers of equipment. started as sole proprietorship.e. IT. vision and objectives of the business.

sales objectives and estimated market share of the business. A) Marketing Plan Market · Description of the market for the product or service. · Market segment targeted by the product/services. · Key customers and demand levels. · Market statistics on existing and potential demand. security. · 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. 5. power. · Benefits that the products/services meet.§ § § § § § Infrastructure/utilities availability (roads. telephone. · Present sources of supply for product. water. market competition including the possibility of substitutes. amount and terms · Proposed security · Key operating and financial assumptions. what is the Production capacity) Annual production capacity Production per day Installed capacity Current production capacity Optimum production capacity 4. unit prices. potential users and distribution channels. · Competitive advantage of project. 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. A) F:CDD:42  Page 4 of 9  Rev 0  . · Projected volumes. · Marketing strategies.

What is the businesses weak points 4. 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.How can the business increase its sales 5. Economic.What is the business going to do better than its competitors 2. Technological. External Analysis (Analysis using Political. other assets and guarantees.What can make the business fail or go down 7.What is the business’s strong points 3. location of assets · Current valuation of the security and any existing charge? · Detail the nature of security offered such as property. Social. 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 F:CDD:42  Page 5 of 9  Rev 0 . opportunities and threats) 8. Legal & Environmental factors. Risk & Sensitivity analysis.b) Security to be Provided · Description/nature. Internal Analysis (Strength and weaknesses) 1.

Cash flow & Balance sheet) · · · · · Key assumptions: Projected demand levels and market share. Financial projections (P&L. 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.9. construction.land.  Projected Profit & Loss Account  Year 1  Trading  Total Sales  Stock in hand at  beginning of the  period  Total Purchases  Total stock at hand of  the period  Gross Profit  Total expenses  Depreciation  Loan Repayment  Income tax paid  Net Profit  ASSUMPTIONS  Sales Units  Sales price  Variable costs  Overhead expenses  Depreciation rates  used  Tax rates used  Other assumption Year 2  Year 3  Year 4  Year 5  F:CDD:42  Page 6 of 9  Rev 0 . return on investment) Critical factors determining profitability. Cash flows. Estimated total project cost.

Projected Balance Sheet Year 1  Year 2  Year 3  Fixed Assets  Less accumulated  Depreciation  Net fixed assets  Investments  Current assets  Stock  Debtors  Cash and bank  Total current assets  Current liabilities  Creditors  Taxation  Loans­current portion  Bank overdraft  Total Current liabilities  Net current assets  Total net assets  Capital employed  Equity  Share capital  Retained earnings  Capital reserve  Shareholders loans  Shareholders interest  Grants  Long­term liabilities  Loans  Deferred tax  Total capital employed Year 4  Year 5  F:CDD:42  Page 7 of 9  Rev 0  .

 sale  of asset or property)  Total  cash  inflow(A)  Cash Outflow  Land  Plant & machinery  Equipment  Vehicles  Other assets  Operating / non­  operating costs  Salaries & wages  Electricity  Utilities  Water  Telephone  Electricity  Tax  Sales tax  Income tax  VAT  Financing costs  Loan repayments  Interest on overdrafts  Other costs  Fuel  Insurance  Rent  Raw materials  Marketing  Total  cash  Outflow(B)  Net cash flow(A­B) Feb  Mar  Apr  May  Jun  Jul  Aug  Sep  Oct  Nov  Dec  F:CDD:42  Page 8 of 9  Rev 0  .CASH FLOW PLAN  YEAR  200  Jan  Cash Inflow  Sales  Other  income  (e.g int. earned.

Approval of the loan may elapse after a specified time by the financier. Implementaion plan N. 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.B: Promoters are required to give an implementation schedule of the project. Provide a Gantt chart.10. F:CDD:42  Page 9 of 9  Rev 0 .

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