Business Plan Tutorial

8/2/2019 Business Plan Tutorial

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1. Analyse a business plan

4. Business Plan presentation


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1. Capitalcash or goods used to generate income by investing ina business Stable capital base before any lender is willing to grant a loan.

Loans usually rejected for undercapitalisation or too much debt. Undercapitalization-is a situation where a business does not have

sufficient capital for its size of operations

2. Capacity

A synonym for capacity is cash flow Cashflow-is a measure of a companys financial health = cash

receipts minus cash payments over a given period of time

The firm must be able to meet its regular financial obligations and

to repay loans


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3. Collaterala borrowers pledge of specific property to a lender tosecure repayment of a loan . It serves as protection for a lenderagainst a borrowers default . Any assets an entrepreneur pledges to a lender as security for

repayment of a loan

Lender has the right to sell the collateral, in the event of loan default

4. Character

Lenders and investors must be satisfied with an entrepreneur'scharacter.

Honesty-freedom from deceit or fraud

Integrity- morality


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Competence-possession of a required skill , knowledge ,qualification or capacity

Polish- refined character/finesse /swagger/suave/business acumen

Determination-firmness of purpose

Intelligence-ability to learn , reason and understand

Ability- an acquired or natural capacity or talent that enables aperson to perform


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5. Conditions- the factors that have an impact on the operationof a business

Potential growth in the market- is the expected volume ofoutput a market is expected to achieve .This is indicated by keyfactors such as increase in buyers or sellers within this marketor as a general trend of sales volume increasing .

Competition-where firms strive for a greater share of a marketto sell goods or services

Location-the geographical location of the business(where andwhy)

SWOT analysis-to identify and analyse the Strengths and


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Demonstrate enthusiasm about the venture Enthusiasm-great excitement for or interest in a subject or cause(yourbusiness)

Work to convince your audience Use logic of your point by using facts , figures etc e.g how is your businesssuperior to competition Include things that your audience has strong attitudes about e.g. showhow your product will help protect their financial security Values- those things that the audience thinks are good or desirable

Emphasise the opportunities and the anticipated benefits of the newventure.

Keep your presentation simple by limiting it to two or three major points.


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Avoid the use of technological terms where possible Technological terms-make your presentation content so thatnon specialists(laymen)for your discipline can understand . Use visual aids any object you bring to support your project,it gives the listener something concrete to look at to enable abetter understanding of what you are saying e.g. a graph , piechart etc

Close by reinforcing the nature of the opportunity.(strengthenor support your business idea)

Documents

Business Plan Tutorial