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BUSINESS PLANNING (2)

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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?
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• 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
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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
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Declaration
Acknowledgement
Dedication
Table of content
Components of a business
plan
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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
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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
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