1. Developing business and regional/rural development plans
Arr720s: applied regional and rural economic development

2. outline Business plan: rationale, guidelines and outline
Regional/rural development planning: rationale, planning systems and important steps

3. objectives To learn how draw up a business plan (theme I)
To study how to develop a regional or rural development plan (theme II)
To engage students and assess their understanding through interactive discussions

4. Theme I
How to draw up a business plan

5. What is a business plan?
A written document which details information about the structure, operating plan, resources etc. for a business

6. Why write a business plan?
Helps to evaluate the feasibility of a new business idea: marketing, management and profitability
Lays out operating plan: opportunities; production, administrative and marketing plans; budgeting and projections

7. Why write a business plan? (cont’d)
Communicates ideas and serves as marketing tool: financing, profitability, return on investment, cash flow and liquidity
Helps to connect with relevant audience: formal and informal business plans

8. Basic business plan guidelines
Owners should be involved in planning process
No planning (or poor planning) is a recipe for failure

9. Basic business plan guidelines: executive summary
Included at the beginning of complex business plans
Usually about 3-5 pages

10. Basic business plan guidelines: executive summary
Included at the beginning of complex business plans
Usually about 3-5 pages

11. Basic business plan guidelines: section one
Written section describing management and marketing aspects of business
Should be thorough, but concise and to the point
Comprises headlines, graphs and bullets
Usually ranges from pages

12. Basic business plan guidelines: section two
Comprises financial projections
Numbers describing outcome of business strategies and plans
Should be based on facts and research

13. Basic business plan guidelines: section three
Contains supplemental information
Reinforces information in sections one and two
Content varies depending on type of business

14. Ten ways to ruin your business plan
Submitting an unkempt or rough copy
Outdated historical financial information
Unsubstantiated assumptions
Failure to consider prospective pitfalls
Lack of understanding of financial information
Lack of specific, detailed strategies

15. Ten ways to ruin your business plan (cont’d)
No indication that the owner has anything at stake
Unwillingness to personally guarantee any loans
Starting the business with unrealistic loan amounts or terms
Too much focus on collateral

16. Business plan outline
Cover sheet: business name, address, phone numbers, principals
Executive summary or statement of purpose
Table of contents

17. Business plan outline: section one (the business)
Description of business
Products/services
Market analysis
Marketing plan
Location
Competition
Management and operations
Personnel
Application and effect of loan or investment

18. Business plan outline: section two (financial data)
Projected financial statements: income statements, cash flow statements, balance sheets, assumptions to projected financial statements
Breakeven analysis
Sources and uses of funds

19. Business plan outline: section three (supporting documents)
Historical financial statements
Tax returns
Resumes
Reference letters
Personal financial statements
Facilities diagrams
Letters of intent
Purchase orders
Contracts

20. Drawing a business plan
Important questions
Class exercise: drawing a mock business plan

21. Theme I: discussion questions
What is a business plan?
Why is it necessary to write a business plan?
Discuss the basic guidelines associated with writing a business plan.
Outline ten ways to ruin a business plan.
Examine the outline of a business plan.

22. Theme II
How to draw up a regional or rural development plan

23. introduction Regional development planning entails:
Decentralisation plus resource allocation
“Holistic and integrated rural development, basic needs-orientated development and unified approach to development” (ILRI, 1983).

24. Developing a regional economic development strategy
Where are we now?
Where do we want to be?
How do we get there?
How do we measure, evaluate and communicate our results?

25. Steps in regional development planning
Defining regional goals and objectives
National context, consultations
Conducting in-depth research
Socio-economic conditions, resource potentials, needs, barriers to growth and development, historical backgrounds, experiential lessons and social attitudes
Developing the plan
Timelines, reflect findings of research process, represent physical and socio-economic features
Formulation of programmes and/or projects
Monitoring and evaluation

26. Designing a development vision
Choose your priorities
Balance geographical perspectives
Allocate resources based on priorities
Consider different perspectives among stakeholders to get the big picture
Articulate your vision

27. Smart growth economic development strategy
“A strategy that builds upon existing assets, takes incremental actions to strengthen communities, and builds long-term value to attract a range of investments”.
Economic decline and lack of diversification
Resource depletion, globalisation, change in consumer preferences etc.

28. Smart growth economic development strategy: core components
Supporting businesses
Supporting workers
Supporting quality of life

29. Preparing a Smart growth economic development strategy: key principles
Distinguish between “growth” and “investment”
Be tactical and strategic
Be focused
Start where there is already momentum
Find the right partners for specific goals
Communicate and coordinate

30. Preparing a Smart growth economic development strategy: major steps
Select a focus area
Define the context
Set goals
Identify existing assets and barriers
Select the right tools

31. setting goals in a smart growth economic development strategy: Supporting businesses
Retain existing businesses
Attract new businesses
Promote entrepreneurship
Encourage business growth in in-fill locations

32. setting goals in a smart growth economic development strategy: Supporting workers
Improve access to local employment opportunities
Increase access to advanced education, workforce development and employment opportunities
Improve quality of education

33. setting goals in a smart growth economic development strategy: supporting quality of life
Promote a vibrant downtown or commercial district
Attract stores and services for daily needs
Encourage a wide range of affordable housing types
Increase access to open, green and recreational spaces
Preserve natural spaces

34. setting goals in a smart growth economic development strategy: supporting quality of life (cont’d)
Improve walking and biking facilities
Maintain character and distinctive community assets
Allow a mix of land uses in appropriate locations
Ensure compatibility of adjacent land uses
Prepare for climate change

35. Format: presenting your strategic thinking
Design an attractive cover
Introduce the regional/local economic development authority and its strategy
Summarise your strategy development process
Discuss your regional analysis
Discuss possible future scenarios
Consider stakeholders’ strategies and priorities
Describe your vision for the future of the region
List and explain your ends
Explain the next steps
Place credits and contact information on the back cover

36. Issues of emphasis in regional development planning
Social and economic problems
Economic growth and development
Focus on action
Targeting poverty
Participation
Inception level, sub-regional and community level, production of economic goods and services
Resource utilisation
Strengthening information base

37. Regional or rural development plan: outline
Executive summary
Preamble
Background and processes
Analysis of the regional economy: SWOT etc.
Economic development strategy: strategies for specific sectors based on comparative advantages
Summary and conclusion

38. Drawing up a regional/rural development plan
Case study: Katutura

39. Theme Ii: discussion questions
Discuss four main questions to consider in developing a regional economic development strategy.
Assess the steps involved in regional development planning.
What is a smart growth economic development strategy? Discuss the core components associated with a smart growth economic development strategy.
Assess the key principles and major steps entailed in preparing a smart growth economic development strategy.
Assess the visioning process in the formulation of a regional economic development strategy.
What are the major elements which comprise the format or outline for a regional economic development strategy?

40. references
Board of Directors of Nova Scotia’s Regional Economic Networks (2014). Guide to developing a regional economic development strategy.
Office of Sustainable Communities: US Environmental Protection Agency (2016). Framework for creating a smart growth economic development strategy. Washington D.C..
Sahlman, W. A. (1997) How to write a great business plan. Harvard Business Review.
SBDC (n. d.) Writing a business plan.
Woldemichael, A.T. (2016). Regional development planning: an overriding pathway to inclusive growth and development. Addis Ababa: Rehobot Printers Plc.