FEE 582: MANAGEMENT FOR ENGINEERS
2019
By Ski
Business Plan
The business plan consists of a narrative and several financial worksheets. The narrative
template is the body of the business plan. The act of coming up with a business plan helps you
to think about the business thoroughly through study and research.
Guidelines for the FEE 582 business plan.
1. Maintain the given main headings but come up with suitable sub-headings
2. Each section is expected to be a maximum of five pages and a minimum of three pages
3. You may have pictures but maintain maximum page count at 5 pages
4. Calibri font, point 12, 1.5 spacing, auto or point 6 or 0 spacing between paragraphs
5. In cover page indicate the FIVE (5) GROUP MEMBERS and at start of each chapter
indicate who did the chapter
6. 5 marks for group effort and 10 marks for individual effort, marks will be given for
creativity, objectivity, good research and general presentation of document
Chapters
Chapter 1: The Executive Summary
Without a doubt, the single most important portion of your business plan is the Executive
Summary. Make sure it is a clear, concise and compelling condensation of the business idea.
Make sure:
1. The basic business idea makes sense
2. The business itself is thoroughly planed
3. The management team is capable
4. A clear-cut market exists
5. The business incorporates significant competitive advantages
6. The financial projections are realistic
7. The investors have a chance to make money
The Executive Summary can either be a synopsis that relates in abbreviated fashion to the main
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chapters of the business plan, or a narrative summary that tells a story.
Chapter 2: Company Description
This chapter is to inform the reader about the basic details of the business. Have the following:
1. The company name
2. The company objectives/mission statement/vision statement/core values
3. Legal issues
4. Products and/or services
5. Management (board of directors, CEO, main directors/managers)
6. Business location
Chapter 3: Industry Analysis and Trends
No company exists in a vacuum. So you need to tell the story of the bigger industry in which the
company will exist.
Have:
1. A description of the industry
2. Trends in the industry
3. Strategic opportunities that exist in the industry
Chapter 4: Target Market
It is essential to know your customers. Define the target market, demographics, geographical
description, market size, etc.
Chapter 5: Competition
The key questions are:
1. Who are your major competitors?
2. On what basis do they compete?
3. How do you compare?
4. Potential future competitors?
5. Barriers to entry for new competitors?
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Chapter 6: Strategic Position and Risk Assessment
This means having a clear understanding of where you stand in the marketplace, what makes
you compelling to customers and what advantages you have over competitors. A strategic
position defines what you do.
This would involve knowing:
1. Your strengths and interests (strengths, weaknesses, opportunities, threats-SWOT)
2. Industry trends and developments
3. Market changes and opportunities
4. Competitive changes and opportunities
5. Changes and opportunities brought through new technologies
Chapter 7: Marketing Plan and Sales Strategy
You must have a way to reach and capture customers.
A well thought out marketing plan would have:
1. How you make customers aware of your products
2. What message you are trying to convey to customers about your products and/or
services and the company
3. Specific methods you will use to deliver and reinforce the message
4. And how you will secure actual sales
You may have a marketing budget with marketing channels to be employed and associated
costs.
Chapter 8: Operations
This is how the business will be run. Includes: the facilities, location, production methods to be
employed, production plan, stock control, capacity etc.
Chapter 9: Technology Plan
Every business needs technology. This may be for accounting, ordering/stock management,
communications, sales etc. The key issues to consider when deciding a technology plan are
functions, ease of use, cost, security, ability to upgrade etc.
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Chapter 10: Management and Organization
People are at the heart of any organization/company. They will either make or break the
business. You will need to have a clear description of:
1. The organization chart showing lines of responsibilities
2. The management team
3. Key employees in terms of experience, successes, education,
Chapter 11: Community Social Responsibility
The most basic component of CSR is being a good corporate citizen. The basic themes are:
1. Obeying the law
2. Treat employees fairly
3. Be honest and fair as a business to customers and suppliers
4. Be cognizant of the impact of your actions on the environment
5. Be involved in the community around your business
Chapter 12: Development, Milestones and Exit Plan
Every business grows in phases. So, the question is, where do you see yourself in five, ten,
twenty years.
Are you a steady provider, innovator, quality leader, market/industry leader, niche leader of
exploiter?
Also, in terms of strategy, will you be a market penetrator, promotion and support, expansion,
increase focus, diversity or refocus.
Also, what are your present and future milestones, and how will you know you have reached
where you wanted to go?
Chapter 13: The Financials
Numbers are neither magical, mysterious or menacing. They simply represent your decisions. If
you decide to advertise in the TV every day, there is a number attached to that.
Have a projection for five years of:
1. Capital budget (money required to start the business)
2. Income statement, and
3. Balance sheet
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