BUSINESS PLAN PRESENTATION

Jude
 Definition of a Business Plan

• Business plan is a document that describes the goals

and objectives of a business and clearly how and
when they will be achieved.
• It is a structured guideline to achieve a business
goal.
• It’s a roadmap to owning and operating a business.
• It’s a proposal that describes a business opportunity
for financing agencies or interests.
 WHY WRITE A BUSINESS PLAN?

•
• It guides in the operation a business
• It guides in the management of a business
• It communicates clearly to all interested
parties.
• It is a requirement in obtaining finance
 Benefits of a business plan
• It’s a financial tool that provides information if
one wants to obtain a loan.
• It enables potential entrepreneurs to assess the
viability of their business opportunities on paper.
• It forces entrepreneurs to establish written goals
and objectives for the proposed business.
• It establishes the financial need of a business and
suggests the possible sources of financing.
• A business plan tests ideas on paper.
• It indicates the owner’s ability and commitment.
• A business plan is a blueprint or guidelines.
 Qualities of a good business
plan

• Simplicity and clarity – in order to be attracted and motivating

to the reader, the business plan should be:
– Be simple
– Sentences should flow logically
– Each sentence should have one idea

• Brevity – one should be brief and straight to the point.

• Logic – ideas should follow one another in a logical sequence.
Paragraphs should be connected.
• Truth – one needs to be frank and not overstating the facts.
• Use of figures – words should be baked by figures especially in
financial plan
 Simple cover page

• Business plan
• Name of the business
• Address( Post address, telephone, email, Fax etc)
• Logo
• Presented by
• Admission number
• Presented to…………………………………..(Name of the institution)
• Requirement
• In partial fulfillment of the requirement for award of degree in
business admission
• Supervisor:……………………(for example Kennedy Otieno)
• Date of submission August 2011
 Preliminaries pages

• Declaration
• Acknowledgement
• Dedication
• Table of content
 Components of a Business Plan

I. An executive summary
II. Business description
III. Organization and Management plan
IV. Marketing plan
V. Production and Operational plan
VI. Socio-Economic Responsibility Plan
VII. Risk Management and Control Plan
VIII. Financial plan
IX. Summary of Findings, Conclusion and Recommendation
X. Appendices (exhibits)
 BUSINESS DESCRIPTION
1. Background of the owner
2. Business name
3. Business location and address
4. Form of ownership
5. Type of business
6. Products and services
7. SWOT Analysis
8. Justification of opportunity (need?)
9. Industry
10. Goals of business
11. Entry and growth strategy
 Organization and Management Plan

1. Management team
2. Other Personnel
3. Organizational Chart (Job Descriptions, qualifications, and
responsibilities)
4. Employment Schedule
5. Recruitment, training and promotion (employment process)
6. Uniform
7. Employees ID
8. Remuneration and incentives (Salary Date)
9. Licenses, permits and by-laws (articles of partnership?)
10. Business Registration Process
11. Business Policies
12. Government regulations affecting production/ operation
13. Pre-operating Activities Flow Chart
 Marketing Plan
1. Data analysis
2. Scope
3. Competition
4. Survey Analysis (Data Gathering)
5. Customer (Target Market) (Segmentation)
– Market share/size/segmentation
6. Positioning
7. Pricing strategy
8. Methods of promotion and advertisement
9. Sales tactics
10. Marketing Activities Detailed Action Plan
11. Marketing Budget
Production/Operation Plan

1. Location (Vicinity Map)

2. Production facilities and capacity
3. Production strategy
4. Production process (raw materials & cost)
5. Production Flow Chart
6. Distribution strategy
7. Support Services
8. Technology utilization
9. Machinery and equipment (Cost)
10. Suppliers
 Socio-Economic Responsibility
Plan
1. Responsibility and Contribution to the
society
2. Responsibility and Contribution to the
environment (Waste Disposal)
3. Responsibility and Contribution to the
economy (internal & external)
4. Responsibility and Contribution to the
Government
 Risk Management and Control
Plan
1. Context Definition
2. Risk Identification (refer to slide 17)
3. Risk Analysis and Evaluation (refer to
slide 18-19)
4. Risk Treatment
5. Monitoring and Reviewing Plan
6. Control Measures (for every plan)
In order a risk to be identified properly, the entrepreneur should know the
components associated with that risk, such as:
• Source—something that has the potential to change, divert or destroy a certain
activity or project or to help that change, deviation or destruction, such as
competition or government.
• Event—something that happens as a result of the risk’s source, such as the
expansion of a competitor to the entrepreneur’s operating area, or bringing a
new law by the government that affects the entrepreneur’s business.
• Consequences—the result or the impact on the company, stakeholders and
assets, such as the loss of market share as a result of competition or the decrease
of the profit as a result of a new law that runs tax increases.
• Reason (what and why)—why a change, deviation or destruction is occurred,
such as the failure to forecast the actions of competition or government
decisions.
• Control and his level of efficiency—undertaking of activities such as training,
market research and market surveillance.
• When and where—the time and the place a risk can be occurred.
 Risk Analysis and Evaluation

During the risk identification phase, the entrepreneur can identify various risks than can
have an impact on the activity of the company and prevent the realization of its goals
and objectives. However, it should be emphasized that not every risk has the same
weight and influence. The entrepreneur must rank risks based on priority in context of
consequences that can be caused if they appear. Based on this, risks can be divided into:
• critical (damages that can cause liquidation of the company),
• significant (damages that require additional investments in order to continue with
company’s operations); and
• irrelevant (damages can be covered with actual funds).
Then, they should define the likelihood that a certain risk will occur. Accordingly, risk
analysis includes definition of consequences that can cause a certain risk and likelihood
that this risk will occur.
Based on consequences and likelihood can be
determined the level of the risk, It can be done by
using of the following formula:
Risk = consequences x likelihood
Risk consequence/likelihood
matrix

•Critical (not acceptable, threaten the survival

of the company);
•High (generally not acceptable, expected to
cause some damage);
•Moderate (acceptable, improbably to cause
much damage);
•Low (acceptable: very easy to be managed)
 Financial Plan
• Initial Capitalization
• Source(s) of Capitalization
• Financial Assumptions
• Projected Financial Statements
- income statement
- Statement of Financial Position (Balance Sheet)
- Statement of Changes in Equity
- Projected Statement of Cash Flows
- Notes to the Financial Statements
- Financial Rations