Business Plans for SMME’s

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Presentation transcript:

Business Plans for SMME’s Business management 2b

Business plan – What & Why A written summary of the proposed business venture Guides operations by explaining direction and setting out strategy Attracts lenders and investors

The essentials Enterprise information Staffing Strategies Marketing Financial Management team Manufacturing plan (or execution plan)

Assessing the plan – the 5 C’s Capital Affordable levels of debt Skin in the game

Assessing the plan – the 5 C’s Capacity Ability to generate cash flow Revenue vs expenses

Assessing the plan – the 5 C’s Collateral Lenders want security

Assessing the plan – the 5 C’s Character Personality traits Integrity & reputation Skills and competence

Assessing the plan – the 5 C’s Conditions Chances of success? Macro – economic cycle, size of market etc Micro – location, competitors etc

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