The Business PlanPurpose of a business plan to establish the viability of your projectTo put your idea into writingTo act as a map for your businessassist with management controlto secure financeto communicate plans to third parties

The Feasiblity Study

The Feasibility study is a creative, objective and rational process whereby marketing and financial data are collected assimilated and analysed.

The purpose is to decide whether to proceed with the project under review, define its optimum scope and quantify its prospects for financial success or failure with reasonable accuracy.

The Feasibility StudyIt involves researching an idea, establishing if a market exists, projecting revenue and costs, identifying sources of finance, materials, location and analysing the results.

Writing the business plan translates these ideas into concrete realities.

Conducting a Feasibility Study1.Data Collection

Interpret Resultswork out size and location of marketBuild a profile of customer needsForecast sales and revenueUnderstand competitiondecide on business formestablish location and equipment needsestablish a price

Interpret ResultsThe feasibility study answers the question is the business viable?It provides all the information for the business plan.The plan outlines how the business will be set up and how it will operate

Writing the Business Plan

DEFINITION

A business plan is a formal document that describes a business and its operating environment, its short and long term objectives and the intended means of achieving those objectives

ObjectivesSelling document to potential investorsEstablish the viability of projectTo gain assistance from government agenciesAct as an aid to management by helping to formulate the companys business strategy and detailed business plansMonitoring and assessing CO's future performance

Executive SummaryFirst to read last to be writtenLess than one page Summarise the key points of your businessExplains how xyz company came to beThe products/services we intend to makedescribes the marketShows how we will reach that marketcosts the product/serviceincludes operating budgets and cash flow requests grant aid of xxk based on equity already committed of xxk and loans agreed of xxk

Introduction & BackgroundSet out basic information that reader will want to know about your businessPurpose of the planbusiness name and contact detailsIf business is in operation?Objectives

Own the content

Be realistic

Clear objectives

Keep plan brief and to the point

base it on research and fact

present to communicate not impressTips on Writing the Business Plan

Tips on Writing Business PlanThree stages to writing planThinking(50% of allocated time)WritingEditingStructureDepend on who your target audience isStandard format can be adapted to suit your particular circumstancesProduct/Service Range

Project outline/ Business and its management

History and position to dateCurrent missionObjectives short-termObjectives long-termThe current key management teamBackground of owner/ manager/ partners and managerseducation work experience skillsOutline employment prospectslegal and capital structureProfessional advisors

Products/ServicesdescriptionsReadiness for market of new products/servicesDevelopment cost estimatesBarriers to entry/proprietary positionComparison with competition(key competitive advantage)Guarantees and warrantiesFuture potentialSources of supply if not manufacturing

Marketing and marketing strategyDescription of customer needMarket and segment size and growthTarget groupsCustomer decision criteriacompetitorsKey competitive advantagesSWOT

Marketing StrategyPricing policyPromotional plansChoice of location and premisesDistribution channelsAnticipated mark-upPEST that affect strategySales forecasts

ProductionMake or buy considerationshow it is made / deliveredExperience you have of processFacilities neededWhat equipment you needQuality assuranceSource supplies

Management and staffing

specific management roles for existing and planned staff and general organisation of the businessStrategies for retaining and motivating key staffPlanned recruitment and selectionReward packages and links with performanceTraining and development planAppraisal system

FinancialProjected profit and loss accountprojected balance sheetProjected cashflowsAssumptions underlying financial dataSummary of financial performance ratiosFunding Proposal

Funding ProposalFunding proposalI need xxxk made up as follows, I have xxxk of my own, I have secured xxk more from shareholders/ grant agencies etc.,, I need xxk from you please

AppendicesManagement team CVsNames and details of professional advisorsTechnical details and drawingsDetails of patents and copyrightsAudited accountsconsultants reportsOrders on hand and enquiry statusDetailed market research data and findings

EditingSpellingGrammarPage numberingChapter section numberingLogical structureJargonLengthType size and style

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