d) The Management: What is your management team's experience and talent? e) Production: State how the products will be made or the services performed
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1 BUSINESS PLANNING TEMPLATE COMPONENTS OF A BUSINESS PLAN 1. EXECUTIVE SUMMARY a) State the purpose of the plan b) Give a summary of your products or services, with emphasis on distinguishing features and the market need they will meet. c) Estimate your market potential and give an assessment of the competition (the market opportunity) d) The Management: What is your management team's experience and talent? e) Production: State how the products will be made or the services performed f) Funding requirements: How much money is needed, and what will be done with it 2. GENERAL COMPANY DESCRIPTION i. The mission statement of the business; state the business you are in or plan to be in giving reasons for being in business. (Why does your business exist) ii. Give the background of your business, including when it was started, highlights of its progress. (what are the customer problems that the business is trying to solve) iii. The current legal ownership of your business and the reasons for its selection. iv. Product description v. Business goals and objectives vi. Your business philosophy; what is important to you in business. vii. Briefly mention your products target market 3. MARKET ANALYSIS Who is your primary customer - individuals or businesses? Why do your customers want to buy your product or service? How large is your market geographically? How large is your market financially? Are there government regulations that will affect your business?
2 4. COMPETITION ASSESMENT i. What are the competing products and services? ii. Who are the main competitors? Profile of key players (company size, turnover, profitability etc) and their market share. Competitor Market Value to strengths Weaknesses share % customers State why do you think potential customers will choose to buy your product in place of those profiled above. For example, unique features, price, new technologies or systems, etc Benefits to Clients Discuss what the product or service actually do for the customers 5. ORGANISATION PLAN i. Organization Structure ii. Key personal iii. Organizational budget Key Personnel Role Total cost Necessary experience Specialist skills and/or qualifications
3 6. MARKETING PLAN Product/ Service Pricing Packaging Distribution Promotion Sales and growth Strategy Client Relationship Sales and Marketing budget 7. PRODUCTION PLAN Key Resources- (Production/operation facilities& capacity) Key Activities- (Product design, development, production and delivery) Production/Operation Process- (flowchart) Regulations Production/Operation Budget 8. FINANCIAL PLAN a. Money Needed: i. State the total amount you need for the business. ii. State the initial amount you need. iii. State the amount you need over the next three to five years, and when you need it. iv. do. In case you underestimated the amount you will need, state what you will v. Give the uses of the initial funds. b. Financing of the Business Give the potential sources of financing (Capital) for your business. Propose the financial structure for your business financing i.e. the proportions of the debt and equity funds.
4 Identify if you qualify for county/national government and private sector such as financial institutions assistance. State the kind of assistance. c. Financial Statements Projections Projected balance sheet and income statement for the next three years Cash flow projections by month for the next year Break-even analysis INCOME STATEMENT ABC LTD INCOME STATEMENT AS AT 31 st DECEMBER 20X7 Sales (Returns in) () Less COGS: Opening stock Purchases Carriage in Returns out () Less closing stock () () Gross profit Less expenses Rent Printing Other expenses () Net profit () BALANCE SHEET ABC LTD BALANCE SHEET AS AT (INDICATE DATE) LONG TERM ASSETS Property, plant & equipment Land & buildings Motor vehicles Total fixed assets CURRENT ASSETS Inventory Cash in hand Bank
5 Debtor s LESS CURRENT LIABILITIES Creditor s Overdraft Prepaid income () Working () Net assets capital 9. RISK ANALYSIS / CONTIGENCY PLAN Identify potential risks Indicate mitigating factors 10. BUSINESS POTENTIAL TO CONTRIBUTE TO CVE a. Direct Contribution b. Indirect Contribution
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