1. Business Planning BJÖRN SCHIMANSKI MANAGING DIRECTOR ASIAN TRAILS LAOS WORKSHOP IUCN-KUONI-ASIAN TRAILS VIENTIANE, JUNE 2012

2. Business Planning BUSINESS PLANNING 2

3. Business Planning Decision to commit time, money and effort Feasibility study; understand the big picture! BUSINESS PLANNING 3 Before you start planning your business

4. THE PROCESS OF BUSINESS PLANNING i.Identifying the overall purpose of the business ii.Define a vision for your business iii.Develop measurable goals iv.Identify the activities needed to accomplish your objectives v.Place the activities in proper sequence vi.Identify the resources required to accomplish them A Business Plan is then created to facilitate development of the enterprise BUSINESS PLANNING 4 How to get started

5. Executive Summary Highlights of your business Company description Mission, values Products and services Competition SWOT of competitors Your unique selling point Marketing plan Targeted clients, their expectations Demand, size of market Operations Daily functioning of the business BUSINESS PLANNING 5 Components of a business plan (1/2)

6. Management& Organisation Business structure Key positions Skills needed, labour market Finances Financial statement Cash flow Balance sheet Sustainability Social and environmental sustainability Stakeholder involvement Contingency planning What if? Alternatives BUSINESS PLANNING 6 Components of a business plan (2/2)

7. BUSINESS PLANNING 7 Components of a business plan – time frame Focus of that period Component of the period Ideas Stage Developmen t Stage Excellence Stage 1 Executive Summary 2 Product or Service 3 Your team 4 Market and Competition 5 Marketing and distribution 6 Business system and Organisation 7 Realisation plan 8 Opportunities and risks 9 Financial planning and funding

8. REGULATORY REQUIREMENTS OF A BUSINESS PLAN i.Register your business ► Name ► Licences ► Compliance with regalation ii.Premises ► Secure your premises ► Ensure that premises are compliant with regulation ► Premises are physically secure iii.Employees ► Valid employment documents BUSINESS PLANNING 8 How to get started on business planning

9. Financial Planning & Pricing BUSINESS PLANNING 9

10. WHY FINANCIAL PLANNING? ► Planning to stay in business ► Generate enough cash to pay the bills ► Focus on CASH first, then PROFITS and finally GROWTH ► Creating short, medium and long term financial goals BUSINESS PLANNING 10 Financial Planning

11. THREE BASIC TOOLS i.Cash flow statement Income and spending at the time money comes into and out of the business. ii.Income statement Reports the cash in-flows of the business, periodically (Monthly/Quarterly/Annually). Takes into account seasonality. iii.Balance sheet Lists values of assets and liabilities of the business, including bank loan; It is a measure of the value of the business, not necessarily profitability; It reveals who owns the value of the business. BUSINESS PLANNING 11

12. BUSINESS PLANNING 12

13. BUSINESS PLANNING 13

14. BUSINESS PLANNING 14

15. A BUDGET IS A FINANCIAL PLAN ► Budgeting helps take better decisions for the future ► It quantifies the expectations regarding future income, cash flows, financial position ► Long and short term planning BUSINESS PLANNING 15 Budgeting

16. Annual Budget and Business Plan Monthly report and comparison with budget and forecast Top 15 report Profit & Loss Report Outstanding Report Forcast A, B, C BUSINESS PLANNING 16 Budgeting example – Finances at Asian Trails Laos

17. VALUE IS MORE IMPORTANT THAN PRICE ► Cost based pricing ► Demand based pricing ► Competition based pricing ► Dynamic pricing (different price according to demand, type of customers, time) BUSINESS PLANNING 17 Pricing

18. A business with potential needs BUSINESS PLANNING 18 SUMMARY – What is important?! a costumer value a market to be possible & profitable to be innovative

19. THANK YOU FOR YOUR ATTENTION!