BUSINESS PLAN
Objectives
By the end of business planning, students should be able to:(i)
(ii)
(iii)
Examine the critical factors that should be addressed in planning
Outline the importance of a business plan and describe the benefits derived from it
Discuss each component of a business plan
Definition of a Business Plan




Business plan is a document that describes the goals and objectives of the 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 business.
It’s a proposal that describes a business opportunity for financing agencies or interests.
Why write a business plan?
(i)
(ii)
(iii)
(iv)
(v)
To obtain financing
It guides in operating a business
It guides in managing a business
It communicates clearly to the interested parties
It is a marketing tool for the business
Why is a business plan written?
(i)
(ii)
(iii)
After deciding to go into business
Before starting the business
When updating is required especially when the owner wants to expand the business
Who writes the business plan?
(i)
Each prospective business owner/manager writes a business plan for the business he/she
intends to open, or may get assist from consultant/expert.
How is the business plan written?
(i)
(ii)
(iii)
(iv)
BY identifying all the questions that could be collected relating to the business
By determining what further information need to be gathered to answer all the questions
By comparing various alternatives
By making a decision on each question
Source of information when writing a business plan
(i)
From the customers
1
(ii)
(iii)
From the consumers
Suppliers
Benefits of a Business Plan
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
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
I establishes the financial need of a business and suggests the possible sources of financing
A business plan tests ideas on paper
It indicates the owners’ ability and commitment
A business plan is a blueprint or guidelines
Qualities of a Good Business Plan
1. Simplicity and clarity-in order to be attracted and motivating to the reader, the business plan should
be:(i)
Be simple
(ii)
Sentences should flow logically
(iii)
Each sentence should have one idea
2. Brevity-one should be brief and straight to the point
3. Logic-ideas should follow one another in a logical sequence. Paragraphs should be connected
4. Truth-one needs to be frank and not overstating the facts
5. Use of figures-words should be backed by figures especially in financial plan
2
Sample Cover Page
Business plan
Name of the business
(Logo)
Motto of the business
Presented by
Name and Admission number
The technical university of Kenya
A business plan for partial fulfillment of the requirement for award of degree in
………………………… in the school of …………………., The Technical University of Kenya
Dec 2015
3
Declaration (independent page)
I hereby declare that the business plan is my original work and that it has not been presented for the award
of a degree or diploma to any institution.
Name…………………………………………………………………………………………………………
………….
Admin
No……………………………………………………………………………………………………………
….
Signature………………………………………………………………Date………………………………
………..
Supervisor
Name…………………………………………………………………………………………………….
Signature……………………………………………………………..Date…………………………………
……….
4
Acknowledgment (independent page)
Acknowledge: Lectures, Institutions and employer for their financial and moral support.
This part is stated as:
I wish to acknowledge the following people who assisted me in ensuring that the business project report
was successfully done:
(i)
(ii)
Dedication: ………………………………………………( independent page)
Table of Contents (independent page)
5
Components of a Business Plan
(Each Chapter Must on a New Page)
1.0. An executive summary
2.0. Business description
3.0. Marketing plan
4.0. Organization and management plan
5.0. Production/operational plan
6.0. Financial plan
7.0. Risk plan (not necessary if included in every chapter)
1.0Executive Summary
Summary of important points in each chapter and should not be less than 5-8 lines for each component.
It should be one and half to two pages. It should include summary of:
1.1 Business description
1.2 Marketing plan
1.3 Marketing and organizational plan
1.4 Production and operational plan
1.5 Financial plan
2.0Business Description
2.1 Background of the owner
This is where the details concerning the owner of the business are included e.g. name of the owner (s), age,
marital status, address, occupation, education, professional qualifications and business experience. Show
their relevance to business.
2.2. Business Name
* It means the name of the business
* Need to describe how the name was selected
* One needs to come up with a logo of the business
* Logo identifies the business
2.3 Business location and address
* It means where the business will be located, the place and also the site

Location in general

Site is specific
6

Include a map of the location

Physical address of business including email and website
2.4 Form of ownership
The form of the business may include






Sole proprietorship
Partnership
Private company/Public company
Co-operatives
Give reasons for choosing that kind of ownership
Give advantages and disadvantages to show that you understand the business you are going to start.
2.5 Types of business

It means whether the business is a start-up or ongoing

Give some of the activities of the business
2.6 Products and services

What product (s) are you going to offer?

Describe clearly and include features of products and services for example indicate size, color,
shape, materials, quality, packaging of the product

What benefits will consumers obtain from using your product/service e.g consider the
performance, convenience, economy, comfort, durability, usage, flexibility, servicing,
warranties.
2.7 Justification of opportunity
The reasons for choosing that kind of business e.g. exploit resources, nutritional value of opportunity,
niche market, technology advancement, professional qualifications, unmet demand, climate favorable,
infrastructure and security.
2.8 Industry
Which industry does your proposed business belong to? E.g. matatu belongs to transport industry,
consider the total number of firms in that industry or competitors. What is the industry trend? Is the
industry growing, declining or stable? Explain what’s happening in that industry.
Capital requirements and sources of acquisition.
2.9 Goals of Business/Objectives
7
2.9.1. Goals
What does the business want to achieve in the long term? For example to become a quality leader,
market leader, penetrate in the other markets
2.9.2 Objectives
What does the business want to achieve in the short term? For example to maximize profits, increase
sales, minimize costs.
2.10 Entry and Growth Strategy

It means how you will penetrate and gain acceptable in the market

Need to consider the competitive advantages among competitors, pricing and distribution,
advertisement or promotional methods.
2.10.1 Entry Strategy
(i) Competitive advantages of the business that is what your business has, compared to competitors
(ii) Weaknesses of the competitors
(iii)Pricing plan-how you will set your prices for your products
(iv)Plans to attract consumers-methods you’re going to use
2.10.2 Growth Strategy
(i) Trends which signal business growth/signs of business growth
(ii) Opportunities coming from the trends/prevailing opportunities
(iv)
Plans to take advantage of the opportunities
Carry out a SWOT analysis or use the 4 P’s of marketing as strategies for entry and growth
3.0Marketing plan
3.1 Customer
 Understanding potential customers or current is important for any business because thre’s need to
determine who your customers are; wholesalers, retailers, user/individuals, households and
institutions like schools, hospitals, churches.
 You need to determine location of your customers e.g how many they’re and their location in terms
of income, ages, size, education, occupation etc
 What customers are looking for in your product or service? For example:

Product consideration/characteristics: price, quality, appearance, colour, shape, material,
size, weight, volume and efficiency.

Business considerations
 Advertisement and promotion
8




Variety of goods and services
Credit facilities
Capacity of employees etc
Method of selling
Examples of customers that need to be analyzed

Wholesalers

Retailers

Institutions

Individual/households
3.2 Market share/size
It’s the amount of unit sales e.g what is your estimated total sales in units per month or even
quarterly or even yearly. In estimating the market size, one needs to list down the businesses
selling similar products in the market for example assuming that we have the following firms:
(the table below is an example to guide you)
Before you penetrate in the market (use a similar table)
A
Sales
Market share
B
20,000
20%
C
40,000
40%
TOTAL
40,000=100,000
40%
B
20,000
16.7%
C
40,000
33%
D
40,000
33%
After penetration
A
Sales
Market share
30,000=120,000
16.7% 100%
3.3 Competition
 Need to consider what they’re doing
 Analyze factors that have contributed to their success or failure
 Determine if there are gaps to be filled
 Determine your potential competitors and their size in terms of assets, sales volume
and market share of the major competitors
 Determine the strengths and weaknesses of the competitors
 Plans to capitalize on the weaknesses of the competitors
Assuming that we have three firms A, B, C
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Table 6: Competition
A
B
C
Assets
200,000
100,000
200,000
Sales volume
400,000
500,000
300,000=
Market share
400,000=33.3%
1,200,000
80,000
1,200,000
500,000=42%
300,000=25%
1,200,000
1,200,000
100,000
60,000
3.4. Methods of promotion and advertisement
a. Media to use which can be electronic and print media
b. How will you portray your products? What image do you want to project in the mind of
consumers?
c. How often will you advertise your products and services?
d. How much will each advertisement cost?
e. How will you measure the effectiveness of your advertisement?
f. What promotion campaign will you undertake when introducing the product or service e.g
free samples or free introductory services?
g. What promotional methods will you employ or regular basis e.g trade shows, sponsorships
of
competitions and the cost of promotion per events
h. How will you measure the effectiveness of your promotional campaigns?
3.5Pricing strategy
i) The methods of calculating the selling price your products or services.
ii) Factors which will influence your price setting include: Income of clients targeted
 Prevailing market prices
 Costs of raw materials
 Nature of completion
Iii) Actual selling prices of products or services
iv)Credit terms to be offered
 What kind of credit will you give loyal customers or the ones you know?
 When are you going to offer credit? Is it at the end of the month?
 When will your customers pay back?
v) Discounts offered
 Cash discount when one pays promptly
 Trade discount when one buys in large qualities
vi) Any after sales services
 Offered after purchase e.g. transport, warranty, installation etc
3.6 Sales tactics
i) Selling tactics you will employ e.g. direct selling to the customers or personal selling indirectly (through
an agent)
ii) If you intend to sell indirectly to the customers, how will you recruit and remunerate your sales force.
iii)If you intend to sell to the distributors or agents, how will you select and motivate them? e.g. for
middlemen, you can use the one already used by many competitors, select the ones who have a high
reputation. Motivate the middlemen by giving them high profit margins.
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iv) Which geographical areas will your agents cover?
3.7 Distribution strategy
i)How will you get your products to reach your customers? e.g. through sales representatives, wholesalers
or distributors?
ii) What means of transport will you use e.g. road, air, rail etc?
iii) How much will the chosen means of transport cost you per month or for a given period of time?
iv)What specific distribution problems do you anticipate?
v) How will you solve the problems that you anticipate?
4.0 Organization and Management Plan
4.1Management team
Need to include the members of the management team for your proposed business e.g Human resource
manager, managing director, production manager, marketing manager, finance manager etc
4.1.1 Duties and responsibilities;
 Describe Duties and responsibilities of each of the managers stated above
 Their Qualifications depending on the nature of business
 Work experience at a managerial level.
4.2 Other personnel
These include other employees who are not in management team
Title
Accountant
No.
1
Qualifications
B.Com, CPA(K)
Duties
Budgeting, financial reports, payment of
Salaries
Sales Rep
2
Security officer 1
K.C.S.E (C)
Dip in Sales and Marketing
Distributing products, sales promotion
K.C.S.E at least
Experienced
Premises security
4.3 Recruitment, training and promotion
4.3.1. Recruitment
Need to describe how managers and other personnel will be recruited:
For management team one can use:
 Use poaching
 Advertise
 Recruit agencies
Other Personnel
 Poaching
 Recruitment agencies
 Word of mouth
4.3.2. Training
* Induction training will be given to the newly employed staff and also for those who are promoted
* On the job training
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* Off the job training that include workshops and seminars for the staff
Explain the purpose of training
4.3.3. Promotion
* Criteria of promoting personnel e.g. promotion on basis of evaluation/merit, after training and attaining
qualifications and experience.
4.4.1. Remuneration and incentives
* Indicate firm policy on remuneration e.g. to offer attractive salaries to employees so as to motivate and
retain them.
Table of Remuneration and Incentives
Title
Total
No.
Monthly salary
Allowance/Benefits
MD
60,000
1
40,000
20,000
HR
45,000
1
30,000
15,000
Marketing Manager
50,000
1
25,000
25,000
8,000
1
5,000
Security Officer
Total gross
3,000
total
4.4.2. Incentives
 Bonus
 Commission
 Lunch
 Tea, overtime allowance
4.5 Licenses, permits and by-laws
4.5.1. Licences
 Trading licenses are paid for in order to start trading
 Where are you going to get the license and how much will it cost you? City Council license?
 State the purpose of trading license
4.5.2. By-Laws
The business will need to comply with the by-laws issued by: County council, municipal council or City
County.
Give reasons why your business need to comply with the by-laws
4.6. Support Services
The Business will require support services to enable it carry out its operations effectively. These services
will include:
4.6.1. Banking services
 The bank to open an account and the branch
 Type of account
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
Purpose of account
4.6.2. Insurance services
 Firm which will insure your business
 Indicate what you want to insure against
 How much is it likely to cost you?
4.6.3. Consulting services
 Depending on the nature of business, for a school you need advice from teachers/lectures
 Indicate who will be your consultant and the kind of advice expected
4.6.4. Legal services
 Legal services will be required when writing contracts, drafting legal letters, interpreting labour
laws and employment.
 Indicate the legal firm and the lawyer(s)
 Indicate the registered office
5.1.
Production/Operation Plan
5.2. Production facilities and capacity
 Types of facilities required
 List all equipment, machinery, and show the cost of each
 List any other facility required to set up the business and show the cost
 Explain your plans for repairs and maintenance of the machinery
 Show your factory/office layout
 Levels of production (maximum and minimum)
 Explain expansion and future plans of the office/factory
Table 9-: Production, Facilities and Capacity
Item
Office
Store
Quantity
2 rooms
2 rooms
Cost
40,000
20,000
Capacity
5 office personnel
tools/removable equipment
Pick-up
Electricity
Pangas
1
3 phase
5
200,000
30,000
2,000
CC 1800
1000 kw
5 persons
13
remark
others
5.2.1. Firm Layout
 Draw a Firm’s Layout
5.3.Production strategy
It means the methods used to produce the product
 Describe production development from idea to saleable product or service
 Indicate the cost that you will incur when developing your new product
 What kind of method (s) will you use?
 What changes do you anticipate in technology and how will you cope with them?
 Describe your material requirements, who will be your main supplier?
 What alternative sources are available?
 Describe the skills required for efficient production both for direct and indirect workers.
 What will be the total production cost in a month?
 * Purchasing and stock control methods to use
5.4. Production process
 Show stages in producing the product or services
 Production materials involved in production process
 What external factors are likely to affect the production process
 How will you minimize the effects of external factors
 Indicate factors that affect production process
5.5. Production affecting operation
5.5.1. Health regulations
 The requirements of the public health will be adhered to in handling all the company’s products
 Regular advice that would be sought from the government departments
5.5.2. Safety
Necessary measures that you would take or be followed to guard against physical injuries of the workers
e.g. use of the mask, boots, jackets, helmet etc
5.5.3. Environment regulations
Environment concerns are one of the major emerging issues in the running of any business.
Today environmental legislation set by the government will be adhered. Regular audits should be done
to check the availability and their efficiency. Are there measures to conserve the environment? For
instance, what environmental concerns will be handled by planting trees?
6.0. Financial Plan
The main reason of preparing a business plan is to receive funds. The financial plan comprises analyzing
financial requirements or business and developing financial plans.
Objectives of financial plan
i)
Maintain a healthy liquidity position throughout the trading period
ii)
Maintain return on owners equity for example at 25 percentage
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iii)
iv)
v)
Realize a steady growth on income throughout the period
Maintain and control expenses
Maintain an effective accounting system
Financial Assumptions
i)
The expenses are expected to rise by for example 5 percentage as business operations expand.
ii)
Creditors are to be increased by a certain percentage per year.
iii)
Debtors to increase by a certain percentage per year.
iv)
Net profit is expected to increase by a certain percentage per annum.
v)
Net profit realized would be ploughed back to the business so as to expand the business.
6.1.Pre-operational Costs
Pre-operational means the cost incurred before the start of the business
ITEMS
Research/travelling
Designing
Licenses
Advertisement
Recruitment
Professional fee
Installation
Rent deposit
Utility bills
Total amount
COST
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
6.2. Pro-forma Balance Sheet
A balance sheet is a financial statement that shows the financial position of the business for a certain period
of time (usually one year)
Balance Sheet As At December 2011
Assets (fixed)
Building at cost
Land
Motor vehicle
Less depreciation
Furniture & fittings
Less depreciation
Current Assets
Stock
Cash at bank
Cash at hand
Pre-payments
Less Current Liabilities
Creditors
Accruals
Cost
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Xxxx
xxxx
xxxx
15
Bank overdraft
Working capital
xxxx
xxxx
Financed by:
Opening capital
Add net capital
Less drawings
Closing capital
Loans
xxxx
xxxx
xxxx
xxxx
xxxx
6.3. Working Capital
Working capital is the current assets-current liabilities
i.e WC=CA-Cl
Current Assets
Cash at hand
Cash at bank
Debtors
Stock
xxxx
xxxx
xxxx
xxxx
xxxx
Less Current Liabilities
Creditors
Bank overdraft
Accruals
Working Capital
xxxx
xxxx
xxxx
xxxx
xxxx
6.4. Cash flow projection
It is the financial statement that shows cash in and cash out of the business.
Transactions that generate cash in a business include: Sales, payments from debtors, discount received, rent
received, and loan received
Transactions that may reduce cash in a business include: Purchases, salaries/wages, rent repayments,
payment to creditors, standing orders, discount allowed etc.
6.4.1. Cash flow projections for the year 2012
Receipts
Jan
Feb
March………………………June………………….Dec
Loans
50,000
Sales
30,000
70,000
80,000
Debtors
20,000
20,000
35,000
Discount received
5,000
5,000
4,000
105,000
95,000
119,000
Payments
Purchases
Salaries/wages
30,000
10,000
40,000
10,000
45,000
15,000
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Creditors
Discount allowed
30,000
10,000
80,000
30,000
10,000
90,000
34,000
8,000
102,000
Cash flow
Balance b/d
Balance c/d
25,000
25,000
5,000
25,000
30,000
17,000
30,000
47,000
6.5. Pro-forma income statement (trading, profit and Loss Account)
Item
Sales
Cost of sales
Year 1
xxxx
xxxx
Xxxx
Year 2
xxxx
xxxx
xxxx
Year 3
xxxx
xxxx
xxxx
Gross profit b/d
xxxx
xxxx
xxxx
Expenses
Salaries & wages
Rent
Water
Telephone
Postage
Transport
Total expenses
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
Net profit beforeTax
xxxx
xxxx
xxxx
Taxation (%)
(xxxx)
(xxxx)
(xxxx)
Net profit after
Tax
xxxx
xxxx
xxxx
6.6. Break Even Analysis
Break even analysis is where the total revenue is equal to the total costs. The firm is earning normal profit
or zero profit. If total revenue > total costs, the firm makes abnormal profits or supernormal profit. If total
revenue < total costs the firm will make losses. Break even analysis is also known as Cost Volume Analysis.
Assumption of breakeven point analysis
1. Fixed cost will remain constant. It means that the fixed cost does not change as the output changes.
2. Cost and revenue behave in a linear fashion or linear manner. It means if output increases then
revenues will increase proportionally.
3. That, the only factor affecting cost and revenue is volume (turnover).
4. Technology, production methods and efficiency does not change.
5. For graphical methods the analysis relates to one product or to a constant product mix
6. The closing stock is valued at marginal cost only.
Usefulness of breakeven point analysis
As management tool, it has the following benefits
i)
Helps to find specific level of output
ii)
Shows behavior trend of cost and sales
iii)
Information can be used to make proper decisions
iv)
The analysis shows the safety level of a particular level of activity. Safety level means the
quantity which it is safer to produce.
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Limitations to breakeven point analysis
i)
ii)
iii)
iv)
Only done within specific levels of activity
Fixed costs may change at different levels of activity especially in the long run
Variable costs may not give a linear trend
The relevant time facto can affect break even analysis
Formula of break- even point (B.E.P)
a) B.E.P in units
=
fixed costs
Contribution/unit
b) B.E.P in value (shs)
=
fixed cost
x
Contribution/unit
selling price/unit
c) Contributions/Sales ratio
=
Contribution/unit
Selling price
x
d) Number of units for target profits
=
fixed costs + target profits
Contribution/unit
e) Sales for target profit
=
fixed costs + target profits (selling price)
Contribution/unit
100
A company makes a single product with a price of shs 10 and a marginal cost of shs 6 and the fixed cost of
shs 60,000 p.a. calculate:
a) Number of units to break even
b) Contribution per sales ratio
c) What number of units would need to be sold in order to achieve a profit of 20,000 p.a?
d) Which level of sales will achieve a profit of 20,000 p.a?
Solution:
a) Number of units to break- even point (B.E.P)
B.E.P in (units)
=
Fixed cost
Contribution/units
Contribution
B.E.P in units
=
=
=
=
=
b) Break- even point in (sh) value =
=
c) Contribution per sales ratio
=
Selling price-marginal/variable cost
10-6
4
60,000
4
15,000 units
fixed cost
x
Contribution/unit
60,000 x 10
4
4 x100 =40%
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selling price/units
=
d) Target profits
=
e) Sales for target profit
6.7. Desired financing
Item
Pre-operational costs
Working capital
Fixed assets
6.8. Capitalization
Item
Owner’s contribution
Borrowed funds
Total investment
=
10
150,000 (value)
60,000 + 20,000
4
=
80,000 = 20,000
4
60,000 + 20,000 x (10) =200,000 value
4
Amount
xxxx
xxxx
xxxx
xxxx
Amount
xxxx
xxxx
xxxx
6.9. Profitability ratios
i)
ii)
iii)
Gross profit ratio
Net profit
Return on equity
=
G.P
Sales
x 100
=
N.P
Sales
x 100
=
N.P
x
100
Owner’s equity
(opening capital + net profit) less withdrawing
Owners equity
=
iv) Asset turnover
=
Sales revenue (total sales)
Assets (CA+FA)
v) Quick ratio
=
current asset – stock (closing stock)
Current liabilities
vi) Liquidity ratios
=
Current assets
Current liabilities
7.0 Risk Management
It is important for the entrepreneur to make an assessment of risk. He/she should indicate the potential risks
of the new business and go on to describe what might happen to the business if these risks become a reality.
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The entrepreneur should then discuss the strategy (s) to prevent minimize or respond to these risks. Some
of the risks could arise from:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
Economy
Political
Ecological
Social cultural
Economical
Legal
Industry
Financial
Appendix
This consists of support documents/back up material not included in the text of the document. It could
include:
Map
i)
ii)
iii)
iv)
Questionnaire
Certificates of business registration
Bank loan Forms
Curriculum Vitae
Sample Questions
1. Mr. Onyango has been contracted by Beta consultants to write a business plan for milk bar
business. Explain the qualities of such a business plan
2. After operating his business for two years M/s Kameme was advised by a consultant to write a
business plan. Explain the reasons for such advice.
3. A potential investor regards the marketing plan as critical to the success of a business highlight
the critical sections of that component.
4. Explain the sources of information that small scale entrepreneurs may use for writing their
business plans.
5. An entrepreneur is contemplating writing a business plan on mushroom farming. Justify such an
opportunity.
6. Organization and management plan is an important component of a business plan. Highlight the
sections of this component.
7. Marketing research is important to the entrepreneurs before they write a business plan. Justify
the reasons for carrying such a task.
8. Production plan should be included in a formal business plan. Highlight the sections of this
component.
9. Highlight the assumptions that entrepreneurs need when computing break even in the financial
plan.
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10. It makes sense to write a business plan with particular emphasis in mind” in the light of this
statement. Explain any four types of a business for which a business plan may be written.
11. Identify and explain four sources of business ideas for writing a business plan.
12. Discuss FIVE elements of the milestone section of a business plan.
13. State FOUR reasons why it is important for entrepreneurs to write a business plan.
14. Describe FIVE sections of the operation component of a business plan.
15. Describe any five sections of the marketing section of a business plan.
16. Distinguish between a mission and vision statement of a business plan.
17. What is the importance of the operation segment of a business plan.
18. For all types of business plan a set of financial projections is expected. With reference to this
statement, explain five reasons why the financial segment is important.
19. Distinguish between strategic and transactional business risks.
20. Explain the functions performed by a formal business plan.
21. Production plan should be included in a formal business plan. Discuss the importance of such
component to an entrepreneur.
22. When writing a business plan, the entrepreneurs most summarize the risks facing the business
in each of the component in a risk plan section. Describe the risks of each of the component of a
business plan.
23. Organization and management plan is an important component of a business plan. Highlight the
sections of such component.
24. Explain the importance of ration analysis in the business plan.
25. Why should a business plan have a harvesting section of a business plan.
26. Explain the reasons why entrepreneurs are more interested in financial plan component of
business paln.
27. Highlight the limitations of using break even analysis.
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