1. General Outline For a Business Plan - Ian Reid

2. The Topic The Business Plan – REAL value to the business or a waste of time?"

3. Agenda Who is Platinum Black? Business Planning. – Constructing the Business Plan. – The Value Thread. – Strategic Intent. – Marketing – Financial Viability The 7 Hats How to Unlock Profitability Conclusion and List of Contents for the Business Plan

4. Who is Platinum Black? Business Restructuring Specialists Been in operation for almost a decade Successfully worked with over 400 clients Focus on structuring for Extraordinary profits Drive our clients to succeed Objective is redundancy within 3 – 6 months Strive to consistently EXCEED clients expectations Our methodology WORKS !!

5. How Effective Are We? With us having improved our sales by 38 % and our nett profit before tax (audited results received today) by 205 %, this bears testament to your methodology. Bob Cork – MD - BCA SA (Pty) Ltd

6. The greater the difficulty, the more glory in surmounting it. Skillful pilots gain their reputations from storms and tempests. Epicurus, 341-270 BC Greek Philosopher Business planning is hard work…..

7. The Effect of Not Planning

8. Purpose of a Business Plan To take an objective and critical look at the business To provide direction to the business To assist the business in achieving shareholders goals (if correctly implemented) To communicate ideas of entrepreneurs to others Traditionally used to raise money, but has become a strategic tool to run the business effectively

9. WHY the entrepreneur believes that the proposed business will be successful WHAT the entrepreneur is planning to do HOW he or she will do it WHEN it is to be done and WHAT value to any investor WHAT are the key success factors for the proposed business? The Plan Should Indicate…

10. Constructing The Business Plan Drive down of Vision, Mission, Objectives and Goals Performance Management Budget Business Plan Shareholders Expectations Strategy & Action

11. Shareholders Expectations Appraisal value Financial indicators Operational Measures DCF ROE ROE Value Driver s The Value Thread NPV Performance Management Drive down of Vision, Mission, Objectives and Goals

12. The most important part of the business plan is the Strategic aspect The numbers can change – but the STRATEGIC INTENT must be stable Strategic Intent

13. Great ideas need landing gear as well as wings !! C D Jackson However….

14. The fast track.. Identify priorities for writing it Identify likely readers and their needs, preferences and prejudices Draw up a list of contents Write a first draft of the Executive summary Think about what the conclusion will say Make a start on a list of Strengths, Weaknesses, Opportunities and Threats

15. Research Components The research or investigation has two components: a market feasibility study a financial viability study.

16. This information is then used to prepare a marketing plan. Decisions must be taken on: the exact product or service; how customers will be persuaded to buy the product or service; how the product or service will be made available; and what price will be charged Content of a Business Plan These decisions form the marketing mix and change to suit the requirements of the potential customers

17. The REAL Question…. Do YOU believe in the numbers ? Is the plan believable and attractive – to you??

18. Excellence or high performance comes from moving beyond customer satisfaction to customer delight Jim Clemmer But Remember ….

19. Financial Viability Projected Budgets Projected Cash flows Fixed assets required Operating Expenses Fixed costs Profit margin & Break-even Ratio analysis

20. The 7 Hats Operations Human Resources Admin & Finance Marketing R & D IT Management

21. The Hats– Methodology Visualise the structure needed for a hat in 6 months time – to the exclusion of all others Analyse where that structure is now Is there a plan to move to 6 month position? Is the plan allocated a: - priority, timing, responsibility and authority? If so – remove the hat and move to next one If not – Rectify the situation and DO IT!

22. Going concern… Example of The Marketing Hat Identification of products and client needs Identify target market Analysis of Past, Present and Future clients Sales plan and Marketing plan? – What worked before ? What data base will you need Advertising procedures and plan and PR program? Brag Book or web site? Launch of new product program protocol?

23. How to Unlock Profitability Passion and Motivation – with Drive and Focus Ensuring customer satisfaction with great products Adhere to fundamental ratios parameters Adherence to budgetary and cash flow controls Structure business in terms of 7 Hats. Adapt to changing circumstances – be flexible The harder you work, the luckier you get.

24. Because its purpose is to create a customer, the business enterprise has two – and only these two – basic functions: Marketing and innovation Marketing and innovation produce results; all the rest are costs Peter Drucker A Word Of Caution….

25. Conclusion A Business Plan definitely adds REAL value but only if you REALLY apply your mind to it If you Fail to Plan….. You Plan to Fail !!

26. List Of Contents 1.Contents 2.Preliminary details Contact information Document control Professional advisers Definitions 3.Executive Summary 4.Current Situation Basic corporate information Vision, mission, values History Business organization Products and services Core competencies 5.External Environment The economy Market analysis Competitor analysis Competitive advantages 6.Strategy Plans Objectives Business strategy Operating plan 7.Financial Analysis Breakeven analysis Sales projections Capital spending Operating costs Profit and loss account Balance sheet Cash flow and funding required 8.Risk Analysis Overview SWOT – strengths. weaknesses, opportunities & threats Limiting factors Critical success factors Alternative scenarios Specific risks and their solutions 9.Conclusion 10.Annexes A. Current projects B. Detailed financial data C. Biographies for the top management