LE4 Business Plan.pptx
- 2. Content • Introduction • Why is a Business Plan Important? • How to Use a Business Plan • Purpose of a Business Plan • The importance of a business plan • Key elements of a business plan • Tools • References
- 3. What is a Business Plan? • Written document that: • Defines your business • Identifies your goals and mission • Serves as your business “resume”
- 4. Why is a Business Plan Important? • Roadmap for your business • Gives you a better chance for success • Required by financial institutions • Helps communicate goals and objectives • Forces you to look at whole business • Stimulates development of new/future business opportunities
- 5. How to Use a Business Plan • Executive summary • Solicit interest • Screen for investor candidates • Mini business plan • Banking/leasing document • Potential acquirers • Full business plan • Team planning process • Due diligence
- 6. Elements of a Business Plan • Executive summary • Business description • Strategic plan • Production & operation • Marketing plan • Personnel plan • Financial plan
- 7. Purpose of a Business Plan • Alignment of team(s) • Operating plan • Communication across company, division, department, business partners • Investment capital • Expansion capital (banks, leases) • Merger/acquisition process
- 8. Business model How are you going to make money e.g. Our business model is to charge customers N$s____ per month for the service. Payment will be collected in advance for a quarter. What price point and how does that translate into revenue
- 9. Business Description While the first section describes what is being offered, and how it is going to be offered, potential investors will want to see more detail. The company description provides much of this additional information. This is the section where you highlight the clientele you foresee, the advantages you have over the competition, and the void your business will fill. • Business type and size • Location • Facilities • History • Ownership structure
- 10. Strategic Plan • Mission statement • Goals • Business Strategy • Where you want the business to go and how to get there • SWOT
- 11. Mission Statement • A description of what you and/or your business hope to do and be • Values • Vision • Purpose
- 12. Goals and Objectives • Goals • Dream with a deadline • Desired outcomes for your business • Short term (within one year) • Long term (2-5 years) • Objectives • Strategies for reaching goals
- 13. Production and Operation In this section you give a more detailed description of your offerings. Describe how they differ from your competitors' products and the benefits they offer your customers. • Crop system • Livestock system • Other enterprises
- 14. Marketing Plan The market analysis outlines how your chosen industry functions. For example, if you were selling office supplies, you would explain the supply needs of office workers in your target market. Describe how large your market is, how your prices are structured, and how you will remain competitive in your industry. • Marketing strategy • Marketing resources • Promotion and distribution • Inventory and storage management
- 15. Personnel/Management Plan Here you focus on the structure of your business. How many owners does the company have? Who will operate the business? How are responsibilities delegated? What will your promotion and incentive structures be? Many people use charts and graphs to give a visual representation of these factors. • Family and hired labor • Management team • Consultants • Personnel management
- 16. Financial Plan/Projections Here you express the financial goals for your business. Outline how the marketing and sales ultimately equate to a profit. Basically, you make earnings and cost predictions in this section. This is another part of the plan where graphical representation of the information can really help. • Financial statement • Balance sheet • Income statement • Cash flow statement • Long range projections • Projected profitability • Capital required • Asset management
- 17. Thanks