BUSINESS PLAN DESIGN: DEVELOPING YOUR BLUE PRINT OF SUCCESS Writing a winning business plan By Angela Itambo Ihunweze CEO of ANGELA ITAMBO COMPANY (SPEAKER AND CONSULTANT ON ENTREPNEURIAL ISSUES) 080 33 28 04 53, 07088136059 firstname.lastname@example.org www.angelaitambo.com Outline What is a business plan? How and what you need to put a business plan together How to write a business plan for presentation to investors What investors look for in business plan FYI What is a business plan? A written document that outlines all the elements that will transform your idea into a viable business venture with the aim of achieving profit to all stakeholders Yourself the promoter; alleviate poverty Outside investors; create wealth The economy; job creation as well as revenue from taxes The environment at large; curb social ills What is a business plan? Part 2 Uses of a business plan A tool for securing funding An internal document used to structure your idea into a series of well coordinated actions towards achieving your goals and business objectives Forces you the entrepreneur to formalize your vision and research to answer hard questions about the company, its industry and the competitive landscape How and what you need to put a business plan together 1. 2. 3. 4. A well thought out business concept Data on the feasibility and specifics of your business concept along this lines:The market The personnel needed The production/ service process and its machinery or equipment The financials on how much all this will cost and standard turnover and profit expected over a given period of time Also required is an individual proficient in accounting to help put the figures in a readable form. This could be an accountant or business plan writer How to write a business plan for presentation to investors Business plan is divided into four distinct sections:1. Description of the business 2. Marketing 3. Management 4. Financial analysis How to write a business plan for presentation to investors Part 2 Typical business plan format:- 2 Executive Summary:-It is the most important section of your business plan, it provides a concise overview of the entire plan. It tells your reader where your company is and where you want to take it. The Company/ Business Profile: 3 The Market/ Industry/Strategies 4 Management structure 5 Financial analysis 1. How to write a business plan for presentation to investors Part 3 Executive Summary:-It is the most important section of your business plan, it provides a concise overview of the entire plan. It tells your reader where your company is and where you want to take it. c It should not be more than 4 pages It is the last section written It must cover the following areas at a minimum (say one paragraph each): Statement of purpose -- The objectives of the plan... (i.e., to raise money, act as a policy guide, etc.) Company background The company's product or service Strategy overview – How the company will differentiate itself in the market The market potential -- Research findings Financial projections for at least 3 years into the future The qualifications of the management team Finance requirements – How much do you need and how you plan on spending raised capital State in the summary why your business will succeed How to write a business plan for presentation to investors Part 3 The Company/ Business Profile; this section should contain the following:- the legal structure – Company, Partnership, subsidiary, Holding company etc Explain Description of the business concept . Description of the new business activities Description of ownership Review of any licenses, contracts, franchises or patents with description of key conditions and terms How to write a business plan for presentation to investors Part 4 The Market/ Industry section: this is meant to illustrate your knowledge about the particular industry your business is in. Sources for this information will essentially be primary market information (DIY or contracted), secondary information, Interviews with clients, competitors or customers/suppliers and to a lesser extent personal experience. Below are what should be contained in this section:This should cover the following : Market size and growth projections Product life cycle Market seasonality or variation patterns Current market trends The competitors’ profile Industry value chain Market segmentation with buying behaviors of value expectations – Geographic, demographic, income class, behavior patterns, target customers and customer needs Strategy for entry into the market: is it cost differentiation , or price or quality differentiation How to write a business plan for presentation to investors Part 5 The Management structure; this section addresses the organizational structure, it will also seek to convey the character of the management team and why they will make a success of the business. The qualification of your board of directors This will include information such as: Names of key managers and their profiles, highlighting relevant experience Key terms of management services agreements if any Technical partners if any and their profiles including years of experience in similar ventures Key terms of technical services agreements How to write a business plan for presentation to investors Part 6 Financial analysis; this segment of the business plan reviews the economics or viability of the project This will include information such as: How much is required Use of proceeds Projected income statements Projected Balance sheets Projected Cash flow statements Projections should cover a minimum three years This information will generally draw upon the following information sources Discussions with the Promoter Environmental factors e.g. exchange rate, inflation etc. Basic understanding of accounting or the help of an accountant Reasonable assumptions How to write a business plan for presentation to investors Part 7 Implementation Plans: Milestones to achieve each set down plan according to order of priority. For those in need of funding; what investors look for in business plan The ability to turn the idea into a real business. This will be evident in when sales will start coming in. Therefore the cash flow analysis will be studied with a fine tooth brush those on board in terms of management team, and your experience to attract the right team to run the business successfully Potential for growth, the market and industry will be studied to arrive at this conclusion FYI 1. 2. 3. 4. 5. The business plan should begin with a cover page to tell the reader what he or she is about read and how to reach the writer 30-50 pages should be ideal making to long risk the chances of not been picked Try and not make the mistake that your business has no competition Sources of help can be found on campuses, research libraries, online, trade associations Explain your business concept, be conservative with projections, excite but don’t indulge in hyperbole. Entice the reader to get involved Angela Ihunweze’s dossier CEO OF Angela Itambo Company services rendered are as follows Business Advisory Business plan preparation Business counseling Business facilitation Promotion Placement of Advertisement Trade fair representation and advisory Recruitment Recruitment notice Selection In house training Training In house training on business management related issues. This year 2008, beginning from June she will be organizing a seminar on Identifying and accessing business opportunities. Outsourced speaker on entrepreneurship Angela Itambo’s profile List of some Clientele GBOYEGA OSHODI founder of MAGDIEL COOKIES LUKE OKWARA Publisher of SME INDUSTRY AWESOME ASSEMBLY OF The Redeemed Christian Church of God CHAPEL OF THE HEALING CROSS IDI ARABA STRONG TOWER of The Redeemed Christian Church of God OBINNA NWOKE of ESTATE PAINTS TOYE OGUNYEMI CEO of TREASURE PRINTS KANAYO NWOKEDINOBI CEO of PHOBICA CHEMICALS LIMITED SIR EMMA OKOLI Co founder PECO PRODUCTS (MAKERS OF FREE LIFE SANITARY TOWEL/NEBY Aluminum Ltd Angela Itambo Company,registered with the Corporate affairs commission of Nigeria February 6th, 2004, and based in Lagos. It was founded by a graduate of business management from the University of Calabar; also a post graduate degree holder in the area of marketing, in person of Angela Itambo Ihuweze; a graduate of business management from the University of Calabar; also a post graduate degree holder of marketing. She is assisted by a team of experienced of renowned professionals in the field of entrepreneurial development.