1 | THE BUSINESS PLAN
A Business Plan is…
1. a blueprint of how the business should look
like in your mind.
2. “tell a story” and explain how the
business will achieve its objectives
in a coherent manner. The “story”
should focus on customer’s needs.
1. To identify the market, its growth prospects,
target customers and main competitors.
A Business Plan is…
4. Based upon a credible set of assumptions to
which the success of the business is most
sensitive.
5. To identify the risks facing the
business, the potential downsides
and actions should be taken to
mitigate the risks.
4. To describe its differences from its competitors:
its source of competitive advantage and how it
will be sustained in longer term.
A Business Plan is…
7. To describe the experience and track record
of the management team.
8. To identify the funding being sought from
potential investors.
A Good Business Plan Checklist
 Tells a coherent, consistent and customer
focused story;
 Clearly defines market, its prospects, the
customers, suppliers and competitors;
 Contains credible business planning assumptions
and forecasts;
 Describes how business will achieve sustainable
competitive advantage;
 Identifies assumptions to which business is most
sensitive, the potential risks and any mitigating
actions;
A Good Business Plan Checklist
 Is supported by those that must implement it;
 Contains description of individuals involved in
managing the business;
 Identifies funding requirement for the
business.
 Who is this business plan for and why?
A Business Plan should…
1. Focus on market growth and
the sources of sustainable
competitive advantage for
the business.
1. Emphasis on strategy, tactics and financial
projections, rather than on operational
detail.
A Business Plan should…
3. Provide basis for creation of business
process, job descriptions and operational
budgets.
4. Provide basis for monitoring
and analyzing performance.
A Business Plan in Another
Situation
A business unit in a large organization will
prepare business plans in order to gain approval
for new business initiatives from senior
management and the board. However, the
following questions may be asked.
1. Is the plan consistent and supportive of the
business’s overall strategy?
2. What is the impact on overall financial
performance of the business in terms of
revenue growth and profitability.
A Business Plan in Another
Situation
3. Will adopting the business plan require
4.
5.
6.
7.
additional fundraising?
Does the business plan reinforce the
position of the business’s brand?
Is the business plan feasible and within the
scope of the organization’s capabilities?
Will adoption of this business plan have
impact on other areas of the business?
What alternative opportunities could be
pursued?
A Business Plan Template
Executive Summary
Current business situation
Vision, mission, objectives
Current state of the business
Products and services
Strategy and sources of sustainable competitive
advantage
Customer acceptance
Summary financial forecasts
Money required, timing and deal on offer
Definition of the current business and its market
Corporate history, major events and past financial
performance
Current business and market position
Core competencies
Current business organization and outline
business infrastructure
Basic business information
Political, economic, social and technological
analysis and impacts
Key differentiators and unique selling points
VRIO analysis
Core competencies
Title
Contents
Contact information
Document control
Professional advisers
Definitions
Legal structure and corporate data
Strategic analysis
Configuration of resources
Value add analysis
Configuration of resources
A Business Plan Template
Value add analysis
Strategic plan
Value chain analysis
Vision, mission and objectives
Value system
Sources of sustainable competitive advantage
Resource audit
Competitive position
Operations resources
Marketing positioning
Human resources
Brand strategy
Organizational resources
Portfolio strategy
Financial resources
Business design
Industry life cycle
Industry structure
Competitor analysis
SWOT analysis
Marketing plan
Marketing segments, size and growth
Description of customers and customer needs
Target market segment
Product positioning and value proposition
Marketing mix
A Business Plan Template
Description of products and services
Engineering and design support
Pricing and discounting
Quality control plans
Advertising and promotional plans
Staffing requirements
Channel and distribution strategy
Sources of supply of key materials
Guarantees and warranties
After-sales service and customer care
Research and development
Comparison with competition
Objectives
Performance and economics
Organization
Marketing forecasts
Plans
Resources
Operations/production
Physical location
Management and organization
Make or buy considerations
Organization chart
The production process
Top management
Facilities, equipment and machinery
Management’s ability to deliver the plan
Scalability of operations
A Business Plan Template
Corporate governance and shareholder control
Discounted cash flow
Staffing
Payback
Recruitment
Breakeven
Training
Benchmarks
Labour relations
Sensitivity analysis
Office space and amenities
Employment and related costs
Financing
Summary of operations prior to financing
Forecasts and financial data
Current shareholder loans outstanding
Summary of performance ratios
Funds required and timing
Sales forecast
Use of proceeds
Assumptions underpinning financial forecasts
The deal on offer
Profit and loss account (income statement)
Anticipated gearing and interest cover
Balance sheet
Exit routes for investors
Cash flow statement
Evaluation criteria and valuation
A Business Plan Template
Risk analysis
Appendices
Risk overview
Glossary of terms
Limiting factors
Details of market research
Critical success factors
Consultants’ reports
Alternative scenarios and strategic responses
Product specifications
Specific risks and risk-reduction strategies
Marketing collateral
Orders in hand
Business controls
Organization charts
Information technology
Curricula vitae
Financial
Detailed financial forecasts
Sales and marketing
Technical data
Operations
Details of patents, copyright
Other controls
Layout and Style
Document should be:
1. Attractive
2. Impressive
3. Easy to read
General appearance: logo, contact details, etc.
Page layout: A4, 12 pt, ring bind, etc.
Writing style: Clear, concise, evidence, etc.
Getting Started
Basic business information:
• Title
• Content
• Contact information
• Document control
• Professional advisers
• Definitions
• Legal Structure and corporate data
Getting Started
Legal structure and corporate data:
• Full name of business
• Corporate status of business
• Its capital structure
• Address of registered office
• Registration number
• Head office address
Getting Started
Executive Summary-The most important section:
The 1st section to be read it must engage readers and excite
them about the potential of the business idea. It should
NOT be an introduction to the business plan; it should be
most carefully written of all the sections. It contains:
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•
•
•
•
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Current state of the business
Products and services and the customers
Sources of sustainable competitive advantage
Shareholder objectives and business strategy
Summary financial forecasts
Decision or funding being sought
Your group should start thinking your new
business ideas.
Go through the concepts and business plan
template just learned.