1. Small business management and Entrepreneurship
David Stokes
Nicholas Wilson
Small Business Management and Entrepreneurship
Fifth Edition

2. Lecture outline Business planning The purpose of a business plan
When to plan?
Who can benefit?
Why produce a plan?
The format of a business plan

3. Business plan
It is a document that is produced for the bank manager, investor, or venture capital fund manager, in order to raise money.
Small businesses that do not have an external funding requirement, therefore, tend not to write formal business plans.
What do you think the reasons for the above mentioned stance?

4. Lack of understanding or benefits of business planning
Pressure on doing, rather than thinking or gathering information in the small business environment
The belief that strategic planning is usually for larger organizations

5. When to plan?
Can you give some examples of situations in which it might be beneficial for a small enterprise to draw up a business plan?

6. Start-up
Business purchase
Ongoing review
Major decisions
Online developments

7. Who can benefit? Who might be involved
In producing a business plans; and
In making decisions based on it?

8. Managers
Owners
Lenders/investers

9. Why are plans beneficial?
In which areas can a business plan benefit each one of these groups?

10. Owners Assessing the feasibility and validity of a business plan
Setting objectives and budgets
Calculating how much money is needed

11. Managers Clarifying ideas and concepts Finding out the unknown
Building a team
Practice in using analysis and presentation
To assist in raising money

12. Investors/ lenders To appraise the quality of management
To assess the overall competence of the entrepreneurial team

13. The format of a business plan
The three questions should be answered in the format
Where are we now? – current situation
Where do we intend going? – direction and targets
How do we get there? – implementation and detailed functional plans

14. Where are we now? Identity of the business The key people Introduction
Names
Legal identity
Location
Professional advisors
The key people
Existing management
Future requirements

15. The nature of business Products/services Market and customers
Industry and competition

16. Where do we intend going?
Strategic influences
Opportunities and threats
Strengths and weaknesses
Strategic direction
Objectives
Policies
Activities

17. How do we get there? Management of resources Marketing plan
Operations and people
Marketing plan
Competitive edge, marketing objectives, methods and research
Money financial analysis
Funding requirements
Profit and loss
Cash flow
Balance sheet
Summary