Business Planning
BJÖRN SCHIMANSKIMANAGING DIRECTORASIAN TRAILS LAOSWORKSHOP IUCN-KUONI-ASIAN TRAILSVIENTIANE, JUNE 2012
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Business Planning
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Business Planning
Decision to commit time, money and effort
Feasibility study;understand the big picture!
Before you start planning your business
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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
How to get started
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Executive Summary
• Highlights of your business
Company descriptio
n
• 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
Components of a business plan (1/2)
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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
Components of a business plan (2/2)
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Components of a business plan – time frame
Focus of that period
Component of the period
IdeasStage
DevelopmentStage
ExcellenceStage
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
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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
How to get started on business planning
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Financial Planning & Pricing
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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
Financial Planning
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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.
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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
Budgeting
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• 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
Budgeting example – Finances at Asian Trails Laos
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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)
Pricing
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A business with potential needs
SUMMARY – What is important?!
a costumer value a market
to be possible & profitable to be innovative
• THANK YOU FOR YOUR ATTENTION!