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Entrepreneurship and Business Management

Presentation and evaluation of business plan Module 9

Think about it Why is it important to have a written business plan? Which factors must be taken into account when presenting it orally? How will it be evaluated?

Presentation of the business plan Unit 9.1

Presentation of the business plan The business plan forms the basis of Entrepreneurship and Business Management. Figure 9.1: Elements to be included in the presentation of the business plan

Why a business plan is of value? It can be presented to banks and other financial institutions for the purpose of obtaining start-up funding. It provides the entrepreneur with an overview of the business. It assists the entrepreneur in understanding each component of the business and helps him or her to be realistic. It is seen as a plan of action to guide the entrepreneur in evaluating the performance of the business. The business plan must be presented both in writing and orally.

Activity 9.1 Test your knowledge of this section by completing Activity 9.1 (page 160 of your Student’s Book)

A business plan presentation Table 9.1: Checklist to assist the entrepreneur in doing a presentation Topic √/ ✖ Is the introduction short and interesting? Will it grab the attention of the listener? Are the objectives clearly spelled out? Do you have clearly defined main points? Do you have a logical sequence? Does the presentation flow from one topic to the next? Is the font big enough for everybody to see? Do you support some of the main points with visual aids and possible calculations? Do you provide a summary at the end?

A business plan presentation Table 9.1: Checklist to assist the entrepreneur in doing a presentation (continued) Topic √ / ✖ Do you have strong arguments in the conclusion and does this link up with your introduction? Do you have sufficient knowledge of all the topics covered in your presentation? Are your notes in the correct order? Have you practised your speech before the time and paid attention to your body language and tone of voice? Are you appropriately dressed? Do you use the correct terminology and applicable examples?

Activity 9.2 Test your knowledge of this section by completing Activity 9.2 (page 160 of your Student’s Book)

Evaluation of the business plan Unit 9.2

Checklist for written business plan Table 9.2: Checklist for written business plan Cover page Contents page Executive summary (including aspects like objectives and personal resources) Personal information of the entrepreneur Description of your business idea Marketing plan SWOT analysis Description of your target market (demographic or other analysis) Description of your product/service Pricing technique (cost-price plus, skimming, etc.) Description of packaging

Table 9.2: Checklist for written business plan (continued) Marketing plan Labelling Logo/trademark/slogan Proof of marketing research (pre-sales questionnaire and/or other methods) Competitor analysis to determine competitive advantage Potential market-share calculation Advertising plan – methods Advertising budget Advertisement – an example Business card Where the business will be located The layout/floor plan of the business Possible sales-promotion strategies

Checklist for written business plan Table 9.2: Checklist for written business plan (continued) Financial plan Calculation of cost price, mark-up and selling price Calculation of the break-even point Sales forecast/sales scenario Sources of finance (own versus borrowed) Start-up costs (pre-operating costs and fixed assets) An Income Statement (projected income and expenses) A projected Cash Flow Statement (cash received and paid) Balance Sheet Record-keeping system

Checklist for written business plan Table 9.2: Checklist for written business plan (continued) Management/human resources plan Steps in production process – only if you are a manufacturing business Stock levels Layout of production

Checklist for written business plan Table 9.2: Checklist for written business plan (continued) Conclusion Summary of business plan and reasons why you think it will be a success Appendices/supporting documents (already mentioned in the sections above) Advertisement Business card Market research questionnaire Possible contracts Floor plan (layout of the business) Other legal documents, e.g. trading licence

VIDEO: IT’S YOUR TIME TO SHINE!

Activity 9.3 Test your knowledge of this section by completing Activity 9.3 (page 162 of your Student’s Book)