Business Plan

1. BUSINESS PLAN
1. Define a Business Plan,
2. Identify the different sections of the business
plan, and
3. Identify the information included in the
Introduction section of the business plan.
Packaging up opportunities: the business plan
1. What is business plan
a. what is the role of business plan?
b. What should a good business plan contain?
c. Guideline for the preparation for business plan
d. Avoiding pitfalls in planning
2. Part of business plan

2. What is
 Purpose and Importance of a business plan:
It is to identify, describe and analyze a business opportunity
and/or a business already under way, examining its
technical, economic and feasibility.
Business Plan
The Entrepreneurial Mind
Business Plan – is a written document that describes in detail
how a business-usually a start-up defines its objectives and
how it is to go about achieving its goals. Lays-outa a written
roadmap for the firm from marketing, financial, and operational
standpoints.

3. However, there is another written document that must be
prepared and is of equal importance as a business plan
This is the Feasible Study – can be define as a controlled
process for identifying problem and opportunities, determine
objectives, describe situation, defining the successful
outcome and assessing the range of cost and benefits
associated with several alternatives for solving a problem.
Furthermore, feasibility study serves as the forerunner of the
business plan.

4. In general, two major tests are conducted every
time a new business idea is created, namely, the
test of possibility and the test of feasibility
The test of possibility on the new business idea
should have positive results, so that the next
test, which is the test of feasibility or viability, can
be conducted. The primary objective of the
feasibility is to determine whether the proposed
business is feasible or not in all areas.
If the outcome of the feasibility is positive, then
the entrepreneur prepares the for a business
plan

5.  Why we make Business Plan
To help you with critical decisions
To iron out the kinks
To avoid the big mistakes
To prove the viability of the business
To set better objectives and benchmarks
To communicate objectives and benchmarks
To provide a guide for service providers
To secure financing
To better understand the broader landscape
To reduce risk

6.  Good Business plan must contain
A good business plan must identify strength and weaknesses
internal and external to the business and challenges in terms of
opportunities and threats to assess the viability of the business .
A business plan should contain all important information that
investor are looking for.
Business Plan must be well-researched and presented containing
only facts and reasonable estimations for future projection.
The plan should be clear and concise, with attainable goals and
objection for each aspect of your plan

7.  Guideline for the preparation
of business plan
Preliminary Investigation
Idea Generation
Environment Scanning
Feasible Analysis
Drawing Functional
Project Report Preparation
Evaluation, Review and Control

8.  Guideline for the preparation
of business plan
 Do Preliminary Investigation in order to create an
effective plan. You must review available business
plan, scan the environment, seek professional advice.
 Idea Generation it involves generation of a new
concept, product, service or value addition to an
existing product or service
 Do Environment Scanning the Internal and external
environment must be analyzed to study the
prospective strengths, weakness and opportunities
and threats of the business.
 Feasibility Analysis is done to find out whether the
propose project will be feasible or not

9.  Guideline for the preparation
of business plan
 Drawing Functional Plan if the feasible plan give a
positive indication a draft business plan is formulated. It
involve preparation of the following faction plan Marketing
plan, production/operation plan, organization plan etc…
 Project Report Preparation it is a written document that
describes step by step, the strategies involved in starting
and operating a business. It prepared when
environmental scanning has been done and feasibility
studies have been carried out.
 Evaluation, Review and Control in order to keep up with
the dynamic environment and successfully face global
competition a business must be continuously evaluated
and reviewed.

10.  Who needs a business plan?
Startup businesses > The most classic business
planning scenario is for a startup, for which the plan
helps the founders break uncertainty down into
meaningful pieces, like the sales projection, expense
budget, milestones, and tasks. A startup business
plan also details the amount of money needed to get
the business off the ground, and through the initial
growth phases that will lead (hopefully!) to
profitability.
• A person who want to start a business.
• A person who already have a business.

11. Existing businesses > Existing businesses use business
plans to strategically manage and steer the business,
not just to address changes in their markets and to take
advantage of new opportunities. They use a plan to
reinforce strategy, establish metrics, manage
responsibilities and goals, track results, and manage
and plan resources including critical cash flow. And of
course, they use a plan to set the schedule for regular
review and revision.
 Who needs a business plan?

12.  THREE COMMON TYPES OF
BUSINESS PLANS:
One-page business plan > A short form of a business
plan that present only the most important issue and
projection.
The Lean Business Plan> A Lean Plan is more detailed
than a one-page plan and includes more financial
information, but it’s not as long as a traditional business
plan. Lean Plans are more likely to be used internally as
tools for strategic planning and growth.
External business plan (a.k.a the standard business plan
document)> the formal business plan documents, are
designed to be read by outsiders to provide information
about a business.

13. What a business plan should include:
Your business plan should provide details of how
you are going to develop your business, when you
are going to do it, who's going to play a part and
how you will manage the finances.
Clarity on these issues is particularly important if
you're looking for finance or investment. The
process of building your plan will also focus your
mind on how your new business will need to operate
to give it the best chance of success.

14. YOUR BUSINESS PLAN SHOULD
INCLUDE:
 An executive summary - this is an overview of the business you
want to start. It includes company’s vision, mission statement,
goals and objectives, and core values. A short description of
products & services.
 Company Description – includes key information about your
business, goals and the target customers that you want to serve
and should include basic detail about your company.
 Market Analysis - this is where you show that you have a key
understanding of the inside and outside of the industry and the
specific market you plan to enter. Market Analysis also Provides
details on customers, competitors, market trends and tactics (e.g.
pricing, distribution and promotion)

15. YOUR BUSINESS PLAN SHOULD INCLUDE:
 Competitive Analysis - a good business plan will present a clear
comparison of your business vs. your direct and indirect
competitors. Your competitive analysis will go in your market
analysis section.
 Description of Management and Organization - your business
must also outline how your organization is set up. Introduce your
company managers here and summarize their skills and primary
job responsibilities. Use an organizational chart to lay out who’s
in charge of what in your company.
 Breakdown of your Products and Services - While your company
description is an overview, a detailed breakdown of your
products and services is intended to give a complementary but
fuller description about the products that you are creating and
selling, how long they could last and how they will meet existing
demand. Describe what you sell or what service you offer.

16. YOUR BUSINESS PLAN SHOULD INCLUDE:
Marketing Plan – this is where you describe how you
intend to get your products and services in front of
your target customers. Like advertising strategy.
Sales Strategy – A sale strategy is define as a
document plan for positioning and selling your product
or service to qualified buyer in way that differentiates
your solution from competitors. Make sure to include
your sales targets as well and the sale strategy
must be specific.

17. YOUR BUSINESS PLAN SHOULD INCLUDE:
Request for Funding – a written request to obtain funding
form a lender or investor for your business. If you're
asking for funding, this is where you'll outline your funding
requirements. Give a detailed description of how you'll
use your funds and Always include a description of your
future strategic financial plans, like paying off debt or
selling your business.
Financial Projections – use existing or estimated financial
data to forecast your business future income and
expenses. Your goal is to convince the reader that your
business is stable and will be a financial success.
Appendix – use your appendix to provide supporting
documents or other materials were specifically
requested.

18.  Different parts of the Business Plan
Introduction > It is written in paragraph form stating salient
details about the business and present the general
perspective of the business.
Executive Summary > It’s an overview of the business plan.
Environmental Analysis > is the study of both the internal and
external environmental factors related to a business with aim
of finding out how such factors affect the business.
Business description > The description fills in the detail
outline in the your summary. It puts together the structure of a
the business.
Organization plan > This section explain how your business
runs and who’s on your team. Simple way to present
organization plan is a flowchart that demonstrate level or
position your employer.

19.  Different parts of the Business Plan
Production plan > The production plan present or
describes activities related to the products of good.
Operation plan > Outline the various activities, from
acquisition of raw materials to delivery of the products to
the target consumers.
Marketing plan > Is a business’s operational document for
advertising campaigns designed to reach its target market.
Financial plan > is simply an overview of your current
business financial and projection for growth.
Appendix > the appendix of a business plan is the place to
include and additional documents that you want to use to
give your reader a feel for your product, marketing, service
and so on.

20. 6 Tips to extract the most value from
your plan in the least amount of time
Use your one-page business plan to quickly outline your
strategy. Use this document to periodically review your
high-level strategy. Are you still solving the same problem
for your customers? Has your target market changed?
Use a Lean Plan to document processes that work. Share
this document with new employees to give them a clear
picture of your overall strategy.
 Set milestones for what you plan to accomplish in the next
30 days. Assign these tasks to team members, set dates,
and allocate part of your budget if necessary.

21. Keep your sales forecast and expense budget current.
As you learn more about customer buying patterns,
revise your forecast.
Compare your planned budgets and forecasts with your
actual results at least monthly. Make adjustments to your
plan based on the results.
 The final, most important aspect of leveraging your
business plan as a growth engine is to schedule a
monthly review. The review doesn’t have to take longer
than an hour, but it needs to be a regular recurring
meeting on your calendar. In your monthly review, go
over your key numbers compared to your plan, review
the milestones you planned to accomplish, set new
milestones, and do a quick review of your overall
strategy

22.  How to avoid pitfalls in
Business planning
Common way to avoid pitfalls in business plan:
 Follow the Guideline when preparing business plan
 Develop a strategic plan
 Manage your time
 Control your growth
 Know your risk and then take it
 Create a positive work environment
 Know your market
 Make a right decision
 Refine and review the plan
 Build a good organization plan

23.  Principle of becoming a
Find the right opportunity
Successful Entrepreneur
Be The leader in your field by all means
Think for good
Be consistence
Build your dream
Appreciate your employees
Analyze before proceed
Making A lot of money fast is not the first goal of entrepreneur
Think wisely
Have a respect
Do something Important
Never Give UP
MAKE A PLAN
GOD First

24. THANK YOU…