COLLEGE OF BUSINESS PEACE LEADERSHIP AND GOVERNANCE

MMS401 ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

ASSIGNMENT 3: PREPARATION OF A BUSINESS PLAN ( Due Date: 15
October 2020)
Instructions
Prepare a business plan for an organization/venture that you plan to create using the following
format. The plan should be properly typed in Microsoft Word, Times Roman Font, 1.5 line
spacing and should reflect the both the logos of your organization and the Africa University.
Marks will be awarded for good style, colorful work, calculations that make sense and evidence
of knowledge of market. All assignments should be uploaded on the virtual classroom as no
physical copies or emailed copies will be accepted. All your work should be your original
creation.
Please do not plagiarize web-based samples. The University has invested in very sophisticated
plagiarism check software, Ukund, which will be able to identify and match all web-based
documents. Heavy penalty and possible University level disciplinary action will be leveled
against all offenders so do not be tempted

Recommended Format of the Business Plan

Preliminary Pages
i. Title Page
This should reflect your organization logo, AU logo, and your name, student number, and
programme, college , course code and course name, title of assignment, module number,
and lecturer and due date.
ii. Plagiarism Declaration Page (Mandatory). Please use the exact wording given below
and insert a scanned signature
I……………………….. am a registered CBPLG student in the year 2018. I am aware that
plagiarism (the use of someone else’s work without their permission and/or without
acknowledging the original source) is wrong.
I confirm that the work submitted for assessment of the above course is my own unaided work
except where I have explicitly indicated otherwise. I have followed the required convention in
referencing the thoughts and ideas of others. I understand that Africa University may take
disciplinary action against me if there is a belief that this is not my work or that I have failed to
acknowledge the source of ideas in my writing.
Signature: Date:

iii. Cover Page: Company name, logo, tagline, contact information, copy number, date
prepared and disclaimer
iv. Table of Contents – listing of the key sections of the plan
v. Executive Summary- one to 2 page overview of the significant points intended to
motivate the reader to continue reading
vi. Industry, Target Customers and Competitor Analysis: General description and key
characteristics of the industry including different segments and the niche where you plan
to compete, market area, size and characteristics, customers, competition
vii. Description of the firm: Company objectives, the nature of the business, its primary
product or service, its current status (startup, buyout or expansion) the legal form of the
organization
viii. Product /Service Plan: description of the product and/or services and justification for
why people will buy the product/service based on its unique features
ix. Marketing Plan/ Strategy Formulation: Overall marketing strategy including methods
of attracting customers, types advertising and sales promotion, pricing, selling approach,
type of sales force, distribution channels, servicing, warranties and packaging, sales and
credit terms and any other marketing strategy elements

x. Operations and Development Plan: Operating or manufacturing methods, and

equipment, operating facilities (Location, space, description of premises and
facilities/equipment), quality control methods, materials and sources of supply,
procedures to control inventory and purchasing procedures
 xi. Management and Key Personnel Plan: Description of the management team, outside
investors, and/or directors and staffing plan (plans for recruiting and training employees),
compensation and ownership, supporting professional services, management assistance
xii. Critical risks and assumptions: List any known inherent risks in the venture. All
business plans contain implicit assumptions, such as how your business will operate,
what economic conditions will be and how you will react in different situations.
Identification and discussion of any potentially major trends, problems or risks you think
you may encounter will show the reader that you are in touch with reality. This section
gives you a place to establish alternate plans in case the unexpected happen. Possible
contingencies you should anticipate are: unreliable sales forecasts, competitors' ability to
under price or make your product obsolete (will competitors try to squeeze you out),
unfavorable industry wide trends, appropriately trained workers not available as
predicted, erratic supply of products or raw materials and any one of the 10000 things
you did not expect
xiii. Offering: How much capital the entrepreneur needs and how the money will be used
(section used to attract investors)
xiv. Financial Plan: forecasting results of estimated market share, sales forecast and
determining cash requirements, contemplated sources of financing; historical financial
statements if available; proforma financial statements for three to five years including
income statements (pro-forma profit and loss statement), Pro-forma cash flow statement
and cash budgets, pro-forma balance sheet, break-even analysis, explanations of
projections and where applicable ratio Analysis
xv. Timeline or Action Plan: Outline the interrelationship and timing of the major events
planned for your venture. This should include steps to accomplishing this year’s goals
(flowchart by month or by quarter of specific actions to be taken and by whom). Include
checkpoints for measuring results (identify significant dates, sales levels, production
levels as decision points). Your time schedule should be realistic and attainable.
xvi. Exit Strategy (optional): Every business will benefit by devoting some attention to a
succession plan. Before you begin your business is the good time to consider how you
intend to get yourself (and your money) out of it.
xvii. Appendix of Supporting Documents: Various supplementary materials and attachments
to expand the reader/s understanding of the plan

Recommended Reading
 Chapter on How to Write the Business Plan in All Recommended Texts
 Mike MacKeever: How to Write a Business Plan, the E-Book
 Bangs, Jr, David H., The Marketing Plan Guide: Creating a Plan to Successfully Market
Your Business, Products or Service