Business Plan OverviewBusiness Plan OverviewForFor

Start-upsStart-upsBy By

Angela IhunwezeAngela IhunwezeCEO of ANGELA ITAMBO COMPANYCEO of ANGELA ITAMBO COMPANY(SPEAKER AND CONSULTANT ON (SPEAKER AND CONSULTANT ON

ENTREPNEURIAL/marketing ISSUES)ENTREPNEURIAL/marketing ISSUES)080 33 28 04 53080 33 28 04 53

angela@angelaitambo.comwww.angelaitambo.comwww.angelaitambo.com

OutlineOutline

What is a business plan?What is a business plan? When is a business plan When is a business plan

said to be marketablesaid to be marketable How and what you need How and what you need

to put a business plan to put a business plan togethertogether

How to write a business How to write a business plan plan

What investors look for What investors look for in business planin business plan

FYIFYI

What is a business plan?What is a business plan?

A written document that outlines all the A written document that outlines all the elements that will transform your idea into elements that will transform your idea into a viable business venture with the aim of a viable business venture with the aim of achieving profit to all stakeholdersachieving profit to all stakeholders

Yourself the promoter; alleviate povertyYourself the promoter; alleviate poverty Outside investors; create wealthOutside investors; create wealth The economy; job creation as well as The economy; job creation as well as

revenue from taxesrevenue from taxes The environment at large; curb social illsThe environment at large; curb social ills

What is a business plan?What is a business plan?Part 2Part 2

Uses of a business planUses of a business plan An internal document used to An internal document used to

structure your idea into a series of well structure your idea into a series of well coordinated actions towards achieving coordinated actions towards achieving your goals and business objectivesyour goals and business objectives

Forces you the entrepreneur to Forces you the entrepreneur to formalize your vision and research to formalize your vision and research to answer hard questions about the answer hard questions about the company, its industry and the company, its industry and the competitive landscapecompetitive landscape

A tool for securing fundingA tool for securing funding

When is a business plan When is a business plan said to be marketablesaid to be marketable

A business plan is said to be A business plan is said to be marketable when it can achieve its marketable when it can achieve its purpose for preparation such as:-purpose for preparation such as:-

Guide towards successful launch of Guide towards successful launch of your businessyour business

Secure fundingSecure funding

How and what you need to put How and what you need to put a business plan togethera business plan together

A well thought out business conceptA well thought out business concept Data on the feasibility and specifics of your business Data on the feasibility and specifics of your business

concept along this lines:-concept along this lines:-1.1. The market:- Is there a well established demand for your The market:- Is there a well established demand for your

business offeringbusiness offering2.2. The personnel needed:- Can you secure the right manpowerThe personnel needed:- Can you secure the right manpower3.3. The production/ service process and its machinery or The production/ service process and its machinery or

equipmentequipment4.4. The financials on how much all this will cost and standard The financials on how much all this will cost and standard

turnover and profit expected over a given period of timeturnover and profit expected over a given period of time Also required is an individual proficient in accounting to Also required is an individual proficient in accounting to

help put the figures in a readable form. This could be an help put the figures in a readable form. This could be an accountant or business plan writeraccountant or business plan writer

How to write a business plan How to write a business plan for presentation to investorsfor presentation to investors

Business plan is divided into six distinct Business plan is divided into six distinct sections:-sections:-

1.1. Description of the business; what is the business is Description of the business; what is the business is all aboutall about

2.2. Marketing; a defined consumer group that will make Marketing; a defined consumer group that will make use of your product/service ad how to attract and use of your product/service ad how to attract and retain them retain them

3.3. Management; the class of manpower that can be Management; the class of manpower that can be recruited to bring the vision to liferecruited to bring the vision to life

4.4. Financial analysis; Cost and benefits of doing such a Financial analysis; Cost and benefits of doing such a businessbusiness

5.5. Risk analysisRisk analysis6.6. Implementation time-tableImplementation time-table

How to write a business How to write a business plan Part 2plan Part 2

Typical business plan format:-Typical business plan format:-1.1. Executive Summary:-It is the most important section of your Executive Summary:-It is the most important section of your

business plan, it provides a concise overview of the entire plan. business plan, it provides a concise overview of the entire plan. It tells your reader where your company is and where you want It tells your reader where your company is and where you want to take it. to take it.

22 The Company/ Business Profile; history of your journey into The Company/ Business Profile; history of your journey into business, what your business stands forbusiness, what your business stands for

33 The Market/ Industry/Strategies; industry your business belongs The Market/ Industry/Strategies; industry your business belongs to and facts backing your desire to compete in such a businessto and facts backing your desire to compete in such a business

44 Management structure; the organization of required manpower Management structure; the organization of required manpower to bring this business into a realityto bring this business into a reality

55 Financial analysis; the cost assembling all there elements to do Financial analysis; the cost assembling all there elements to do and as well as the returns on investment and as well as the returns on investment

66 Risk analysis; anticipated obstacles that hinder the business Risk analysis; anticipated obstacles that hinder the business and plan of action and plan of action

How to write a business How to write a business plan Part 3plan Part 3

The Company/ Business Profile; this section should contain the The Company/ Business Profile; this section should contain the following:-following:-

– Explain the legal structure – Company, Partnership, subsidiary, Explain the legal structure – Company, Partnership, subsidiary, Holding company etcHolding company etc

– Description of the business concept; Description of the business concept; ..– Description of the new business activitiesDescription of the new business activities

– Description of ownershipDescription of ownership

– Review of any licenses, contracts, franchises or patents with Review of any licenses, contracts, franchises or patents with description of key conditions and termsdescription of key conditions and terms

How to write a business How to write a business plan Part 4plan Part 4

The Market/ Industry sectionThe Market/ Industry section: this is meant to illustrate your knowledge about : this is meant to illustrate your knowledge about the particular industry your business is in. the particular industry your business is in. Sources for this information will Sources for this information will essentially be primary market information (DIY or contracted), secondary essentially be primary market information (DIY or contracted), secondary information, Interviews with clients, competitors or customers/suppliers and information, Interviews with clients, competitors or customers/suppliers and to a lesser extent personal experience. to a lesser extent personal experience. Below are what should be contained in Below are what should be contained in this section:-this section:-

This should cover the following :This should cover the following :– Market size and growth projectionsMarket size and growth projections– Product life cycleProduct life cycle– Market seasonality or variation patternsMarket seasonality or variation patterns– Current market trendsCurrent market trends– The competitors’ profileThe competitors’ profile– Industry value chainIndustry value chain– Market segmentation with buying behaviors of value expectations – Market segmentation with buying behaviors of value expectations –

Geographic, demographic, income class, behavior patterns, target Geographic, demographic, income class, behavior patterns, target customers and customer needscustomers and customer needs

– Strategy for entry into the market: is it cost differentiation , or price or Strategy for entry into the market: is it cost differentiation , or price or quality differentiationquality differentiation

How to write a business How to write a business plan Part 5plan Part 5

The Management structure;The Management structure; this section addresses the this section addresses the organizational structure, it will also seek to convey the organizational structure, it will also seek to convey the character of the management team and why they will make character of the management team and why they will make a success of the business. The qualification of your board of a success of the business. The qualification of your board of directorsdirectors

This will include information such as:This will include information such as:– Names of key managers and their profiles, highlighting Names of key managers and their profiles, highlighting

relevant experiencerelevant experience– Key terms of management services agreements if anyKey terms of management services agreements if any– Technical partners if any and their profiles including years of Technical partners if any and their profiles including years of

experience in similar venturesexperience in similar ventures– Key terms of technical services agreementsKey terms of technical services agreements– Advisory board for their inputs to the overall success of the Advisory board for their inputs to the overall success of the

business.business.

How to write a business How to write a business plan Part 6plan Part 6

Financial analysis; this segment of the business plan reviews the economics or Financial analysis; this segment of the business plan reviews the economics or viability of the projectviability of the project

This will include information such as:This will include information such as:– How much is required How much is required – Use of proceedsUse of proceeds– Projected income statementsProjected income statements– Projected Balance sheetsProjected Balance sheets– Projected Cash flow statementsProjected Cash flow statements– Projections should cover a minimum three years Projections should cover a minimum three years

This information will generally draw upon the following information sourcesThis information will generally draw upon the following information sources– Discussions with the PromoterDiscussions with the Promoter– Environmental factors e.g. exchange rate, inflation etc.Environmental factors e.g. exchange rate, inflation etc.– Basic understanding of accounting or the help of an accountantBasic understanding of accounting or the help of an accountant– Reasonable assumptionsReasonable assumptions

How to write a business How to write a business plan Part 7plan Part 7

Risk analysis ; this is very while Risk analysis ; this is very while planning it is meant to anticipate any planning it is meant to anticipate any unlikely unforeseen circumstance unlikely unforeseen circumstance and possible plan of action. This is and possible plan of action. This is crucial when there so many crucial when there so many uncertaintiesuncertainties

How to write a business How to write a business plan Part 8plan Part 8

Implementation Plans: aImplementation Plans: a summary of summary of the time lines for business the time lines for business implementationimplementation

FYIFYI

1.1. Sources of help for information can Sources of help for information can be found on campuses, research be found on campuses, research libraries, online, trade associationslibraries, online, trade associations

2.2. Be conservative with projectionsBe conservative with projections

3.3. Write it in an interesting manner so Write it in an interesting manner so that other readers including that other readers including yourself can wish to read ityourself can wish to read it