Part I Entrepreneurship in the Twenty-First Century

BPTW 4012TECHNOLOGY ENTREPRENEURSHIP

Lecture 3: Business Plan1FPTT - UTeM1What is a Business Plan?A business plan is the written document for a proposed business project that serve: as a blueprintas a guide

Information gathered regarding the project is used in the Business Plan to predict viability, forecast success and propose strategies for the projectFPTT- UTeMThe Business Plan: Three Essential FunctionsGuiding the company by charting its future course and defining its strategy for following it.Attracting lenders and investors who will provide needed capital.Demonstrating that the entrepreneur understands the business venture and what will make it succeed.

FPTT- UTeM3Purpose of Preparing a Business PlanTo allow the entrepreneur to view and evaluate the proposed business venture in an objective, critical and practical manner.To analyse and evaluate the viability of a proposed ventureTo convince relevant parties of the investment potential of the projectAs a guideline for managing the businessTo allocate business resources effectivelyFPTT- UTeMWho Needs a Business PlanThe entrepreneurInvestorsFinancial institutionsSuppliersCustomersCompany staffFPTT- UTeM1. IntroductionName of the companyNature of businessIndustry profileLocation of the businessDate of business commencementFactors in selecting the proposed businessFuture prospects of the business2. Purpose must be stated clear, concise and coherent manner

Body of the Business Plan

FPTT- UTeM3. Company backgroundName of the companyBusiness addressCorrespondence address Telephone numberForm of businessMain activity/activitiesDate of registrationRegistration numberName of bankBank account number

Body of the Business PlanFPTT- UTeM4. Owner or partners backgroundName of the owner/partnersIdentity card numberPermanent addressCorrespondence address Telephone numberDate of birthAgeMarital statusAcademic qualificationsCourses attendedSkillsExperiencePresent occupationPrevious business experience

Body of the Business PlanFPTT- UTeM5. Location of the businessPhysical location of the projectBuildingBasic amenities6. Administrative PlanIntroduction to the organisationOrganisation chartManpower planningSchedule of tasks and responsibilitiesSchedule of remunerationList of office equipmentAdministrative budget

Body of the Business PlanFPTT- UTeM7. Marketing PlanProduct or service descriptionTarget marketMarket sizeCompetitionMarket shareSales forecastMarketing strategyMarketing budget

Body of the Business PlanFPTT- UTeM8. Operation planProcess flow chartProduction scheduleMaterial requirementsManpower requirementsMachine and equipmentOperations layout planLocationOperation overheadsOperation budget2/21/201412Body of the Business PlanFPTT- UTeM9. Financial planProject implementation costSources of fundsProforma cashflowProforma profit and lossProforma balance sheet10. Conclusion

Body of the Business PlanFPTT- UTeMAn entrepreneur should:Make sure the plan has an attractive coverRid your plan of all spelling and grammatical errors Make the plan visually appealing Include a table of contents to allow readers to navigate the plan easily Make it interesting!Use spreadsheets to generate financial forecastsAlways include cash flow projections Keep your plan crisp long enough, but not too longTell the truth always

The Elements of a Business Plan

Scarborough (2011)FPTT- UTeMPresenting the Business Plan to Investors

The Oral PresentationThe first rule in making an oral presentation is to follow directions. If youre told you have 15 minutes, dont talk for more than the allotted time.The presentation should be smooth and well-rehearsed.The slides should be sharp and not cluttered.Questions and Feedback to Expect from InvestorsThe smart entrepreneur has a good idea of the questions that will be asked, and will be prepared for those queries.FPTT- UTeMBarringer & Ireland (2012)16THANK YOUFPTT- UTeM16