CONCEPT OF A

BUSINESS PLAN
It is a written document prepared by the
entrepreneur that describes all the relevant external
and internal elements involved in starting a new
venture.
 

It is thinking ahead of objectives, strategies,

financing, production, marketing, profit prospects
and growth possibilities.
 
Continuation…..
It is also :
 
Planning – What to do
How to do it
When to do it
What to expect in the
future
PRINCIPLES OF PLANNING
1. Planning must be realistic.
2. Planning must be based
on felt needs.
3. Planning must be flexible.
4. Planning must start with
simple projects.
STAGES OF BUSINESS PLANNING
1. Unplanned stage
2. Budgeting system stage
3. Annual Planning stage
Top down approach – he provides the
goal and let the employee comply with
it.
Bottom –up approach- he encourage his
employees to participate in planning the
goals and strategies.
4. Strategic Planning stage
COMPONENTS OF BUSINESS PLANNING
1. SWOT
2. Objectives
3. Strategies
4. Time frame
CHARACTERISTICS OF A
SOUND BUSINESS PLAN
1. Objective
2. Clear
3. Logical and simple
4. Flexible
5. Stable
6. Complete and integrated
Important of Business Planning
1. Planning can eliminate business risk.
2. Planning can minimize cost of production.
3. Planning can detect the weaknesses of the
business operations.
 4. Planning makes you think about al aspects
of your business
5. Planning may help you secure financing for
your business.
6. Planning helps you communicate your
ideas to others