Business Plan
23
description
Presentation
Transcript of Business Plan
Learning Outcomes
1. Understand the importance of planning
2. Be aware of the contents of a business plan
3. The tools for delivering and managing the planning process
What is a Business Plan ?
1.Document outlining your business concept
2.Blue print for running a business:
Where are we now? Where are we going? How will we get there? When will we arrive?
3. Management tool which can help prevent costly mistakes
4. A selling document?
Finance can be a Key Objective
1. Lender needs to be convinced of being repaid
2. Demonstrate there is a good market
SELL THE IDEA AND TEAM
What Does Investors Look For?
1. Market opportunity and idea
2. Evidence of market research
3. Team, track record, strengths and gaps
4. Convincing case for profitability and high returns
What Does A Business Plan Cover?
1.Every aspect of a business - not just financial2.Economic factors3.Environmental factors4.Marketplace5.Customers6.Suppliers7.Competitors8.Production processes 9.Management and employees10.Training etc
Why Prepare a Business Plan?
“Those who fail to plan, plan to fail.”
George Hewell
Why Prepare a Business Plan?
1. Increases chance of success
2. Guides the management team
3. Improves communication (both externally and internally)
4. Establishes benchmarks to monitor and measure actual performance
How Does Planning Increases Success?
1. Identifying strengths, weaknesses, opportunities and threats
2. Quantifying and reducing business risks
3. Understanding internal barriers
4. Establishing priorities
5. Anticipating and avoiding problems
6. Encouraging realism
Common Reasons Given for Not Planning
1. Time
2. Ignorance
3. Over-confidence
4. Resources
Human Financial
What You Must Include?
1. What is the product or service
2. What is the market
By secondary and primary research
3. The management team
4. How the product will reach the market
5. The costs involved
Typical Contents
1.Executive summary2.Company analysis3.Industry analysis4.Analysis of customers competition5.Marketing plan6.Product design / development plans7.Operations Plan8.Management Team9.Financial Plan10.Risks and assumptions11.Appendices
Executive Summary
1. Preferably one page
2. Purpose of the plan
3. Brief description of the business and the marketplace
4. A statement of how much finance is required
5. Summary of financial highlights
6. Calibre of management
Company History
1. Length of time in operation and progress to date
2. Ownership structure
Legal Capital, equity, loans, options Involvement of shareholders
3. Location, contact details
Product/Service
1.Detailed description
2.Why it is unique
3.What benefits it offers / potential applications
4.Details of supplier
5.Status
1.Description of sector
2.Current size, historic and projected growth, trends
3.Segmentation
4.Main competitors
Identity, market share, strengths, weaknesses, potential new entrants
6. Include statistical information7. Methods
Market Analysis
Marketing Strategy
1. Marketing mix
2. Market positioning - quality, price, customer service, brand, image, etc
3. Pricing policy
Cost-based, demand based, discounts, warranties
4. Field / product support
5. Advertising and promotion methods, costs, frequencies, web based, etc
6. Distribution channels
Operations Management
1. Premises
Location, size, facilities, cost, leasehold v freehold, planning and legal issues, alterations, growth plans
2. Staffing and labour, sub contractors
3. Supply base
4. Plant and machinery
1. Excessive detail
2. Inappropriate emphasis
3. Lack of clarity
4. Lack of commitment
Pitfalls
Thank You
SEMESTER PROJECT: GROUP PROJECT
Project Theme: New Venture Practical project will be appreciated, however, theoretical
projects must have valid points and should be supported with solid evidence .
Initial Project Report not more than one page: Submission deadline:
The project proposal report will be evaluated within one week and groups will be invited individually for further discussion and approval with tutor.
SEMESTER GROUP PROJECTProject topics:1. Idea and Opportunity2. Market Research3. Business Model4. Business Plan5. Raising Finance6. Promoting the Business7. Growing the Business
SEMESTER GROUP PROJECT
Final Project Submission deadline:
Presentation date:
Words Limit: 8000 -10000 excluding tables, figures and references
Value: 20%
