TABLE OF CONTENTS

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. Implementation 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

1. 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
 Infrastructure/utilities availability (roads, power, telephone, water, security, etc)
 Comments on special technical complexities and need for knowhow and special skills
 Production plan

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 Processes
 Production Capacity(How much are you currently producing, what is the
Production capacity)

Capacity Production per day Annual production

Installed capacity
Current production capacity
Optimum production
capacity

4. Marketing Plan

A) 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 Strategy-
o Promotion Strategy
o Pricing Strategy
o Distribution/Place Strategy
o Critical success factors for the business

5. Financing Structure
A) 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.

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

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Description Age Original Open Estimated Forced

cost Market/Book Sales
Value

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 business’s 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

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)

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 Critical factors determining profitability.

Projected Profit & Loss Account

Year 1 Year 2 Year 3 Year 4 Year 5

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

Projected Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

Fixed Assets
Less accumulated
Depreciation

Net fixed assets

Investments

Current assets

Stock
Debtors

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Cash and bank

Total current assets
Current liabilities

Creditors
Taxation
Loans-current 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
Long-term liabilities
Loans
Deferred tax
Total capital employed

CASH FLOW PLAN

YEAR 200 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Jan
Cash Inflow
Sales
Other income
(e.g int. earned, sale
of asset or property)
Total cash
inflow(A)
Cash Outflow
Land
Plant & machinery
Equipment
Vehicles

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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(A-B)

10. Implementation 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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