BUSINESS PLAN PRESENTATION DR. KYALO 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 • • • • • • • 1.1An executive summary 1.2Business description 1.3Marketing plan 1.4Organization and management plan 1.5Production/ operational plan 1.6Financial plan 1.7Risk plan (not necessary if included in every chapter) BUSINESS DESCRIPTION • • • • • • • • • • 2.1-Background of the owner 2.2-Business name 2.3-Business location and address 2.4-Form of ownership 2.5-Type of business 2.6-Products and services 2.7-Justification of opportunity 2.8-Industry 2.9-Goals of business 2.10-Entry and growth strategy Marketing Plan • 3.1 Customer • 3.2Market share/size • 3.3 Competition • 3.4Methods of promotion and advertisement • 3.5Pricing strategy • 3.6 Sales tactics • 3.7 Distribution strategy Organization and Management Plan • 4.1 -Management team • 4.2- Other Personnel • 4.3- Recruitment, training and promotion • 4.4 -Remuneration and incentives • 4.5- Licenses, permits and by-laws • 4.6 -Support Services Production/Operation Plan • 5.1 -Production facilities and capacity • 5.2- Production strategy • 5.3-production process • 5.4-Government regulations affecting production/ operation •