1. MAKING A BUSINESS PLAN

2. Objectives Why make a business plan ? Who is it for ? Learn how to make a business plan Discuss common mistakes in making a B- plan

3. Uses of a Business Plan Comprehensiveness Communication Guidance Firms that plan better are more likely to succeed

4. Who is it for? Self Investor –Debt –Equity Key employees Significant others

5. Elements of the Business Plan

6. Preliminary sections Cover page Table of contents Executive summary

7. Major sections Background –History –Current situation –Firm’s advantage Objectives (quantitative / qualitative) –Short term –Long term

8. Market analysis Overall market Specific market –Focus on the consumer Competitive factors Macroeconomic influences

9. Development and production Stages of product development Production process –Use of flow charts Resources (and risks) Quality program

10. Marketing strategy Overall concept and orientation Marketing strategy –Discuss along 4 Ps Sales forecast –Size of market –Market penetration –Pricing Follow up segments

11. Financial statements Projected profit and loss statements Projected cash flow statement Projected balance sheets IRR and NPV projections Break-even analysis –In a table

12. Financial strategy Financial resources Sources – pref. for debt/equity Uses – priorities, expansion plans Internal control and monitoring systems

13. HRM strategy Structure of organisation Manpower planning Supervision Benefits / compensation [retention] Legal & regulatory obligations Key personnel

14. Ownership CVs of promoters Form of business –Subsidiaries, holding companies Equity positions

15. Critical risks & contingencies Failure to produce product promised Failure to meet production deadlines or sales forecasts Problems with suppliers and distributors Unforeseen industry trends Unseen political, economic, social, technological events

16. Critical risks & contingencies (cont.) Retaliation by competitors Problems related to inexperienced mgmt Problems related to unproven technology Difficulties in raising adequate finance Other issues specific to the firm

17. Schedule / Milestones Completing licensing / permit requirement Completion of R & D efforts Completion of product/prototype testing Purchase/lease of facilities Construction timetable Hiring Begin production

18. Appendices Financial statements Photo or drawing of your product Photo of location Layout diagram Sales & profitability forecast charts Market survey & documentation

19. Appendices Fixed asset acquisition schedule Sample press releases, adverts Price lists, catalogues Individual & corporate tax returns CVs of promoters, key individuals