Transcript of "Business plan overview for startups"
Business Plan Overview For Start-ups By Angela Ihunweze CEO of ANGELA ITAMBO COMPANY (SPEAKER AND CONSULTANT ON ENTREPNEURIAL/marketing ISSUES) 080 33 28 04 53 firstname.lastname@example.org www.angelaitambo.com
Outline What is a business plan? When is a business plan said to be marketable How and what you need to put a business plan together How to write a business plan What investors look for in business plan FYI
What is a business plan? A written document that outlines all the elements that will transform your idea into a viable business venture with the aim of achieving profit to all stakeholders Yourself the promoter; alleviate poverty Outside investors; create wealth The economy; job creation as well as revenue from taxes The environment at large; curb social ills
What is a business plan? Part 2Uses of a business plan An internal document used to structure your idea into a series of well coordinated actions towards achieving your goals and business objectives Forces you the entrepreneur to formalize your vision and research to answer hard questions about the company, its industry and the competitive landscape A tool for securing funding
When is a business plan said to be marketable A business plan is said to be marketable when it can achieve its purpose for preparation such as:- Guide towards successful launch of your business Secure funding
How and what you need to put a business plan together A well thought out business concept Data on the feasibility and specifics of your business concept along this lines:-1. The market:- Is there a well established demand for your business offering2. The personnel needed:- Can you secure the right manpower3. The production/ service process and its machinery or equipment4. The financials on how much all this will cost and standard turnover and profit expected over a given period of time Also required is an individual proficient in accounting to help put the figures in a readable form. This could be an accountant or business plan writer
How to write a business plan for presentation to investorsBusiness plan is divided into six distinct sections:-1. Description of the business; what is the business is all about2. Marketing; a defined consumer group that will make use of your product/service ad how to attract and retain them3. Management; the class of manpower that can be recruited to bring the vision to life4. Financial analysis; Cost and benefits of doing such a business5. Risk analysis6. Implementation time-table
How to write a business plan Part 2Typical business plan format:- 1. Executive Summary:-It is the most important section of your business plan, it provides a concise overview of the entire plan. It tells your reader where your company is and where you want to take it. 2 The Company/ Business Profile; history of your journey into business, what your business stands for 3 The Market/ Industry/Strategies; industry your business belongs to and facts backing your desire to compete in such a business 4 Management structure; the organization of required manpower to bring this business into a reality 5 Financial analysis; the cost assembling all there elements to do and as well as the returns on investment 6 Risk analysis; anticipated obstacles that hinder the business
How to write a business plan Part 3The Company/ Business Profile; this section should contain the following:-– Explain the legal structure – Company, Partnership, subsidiary, Holding company etc– Description of the business concept;.– Description of the new business activities– Description of ownership– Review of any licenses, contracts, franchises or patents with description of key conditions and terms
How to write a business plan Part 4The Market/ Industry section: this is meant to illustrate your knowledge about the particular industry your business is in. Sources for this information will essentially be primary market information (DIY or contracted), secondary information, Interviews with clients, competitors or customers/suppliers and to a lesser extent personal experience. Below are what should be contained in this section:-This should cover the following : – Market size and growth projections – Product life cycle – Market seasonality or variation patterns – Current market trends – The competitors’ profile – Industry value chain – Market segmentation with buying behaviors of value expectations – Geographic, demographic, income class, behavior patterns, target customers and customer needs – Strategy for entry into the market: is it cost differentiation , or price or quality differentiation
How to write a business plan Part 5The Management structure; this section addresses the organizational structure, it will also seek to convey the character of the management team and why they will make a success of the business. The qualification of your board of directorsThis will include information such as: – Names of key managers and their profiles, highlighting relevant experience – Key terms of management services agreements if any – Technical partners if any and their profiles including years of experience in similar ventures – Key terms of technical services agreements – Advisory board for their inputs to the overall success of the business.
How to write a business plan Part 6Financial analysis; this segment of the business plan reviews the economics or viability of the projectThis will include information such as: – How much is required – Use of proceeds – Projected income statements – Projected Balance sheets – Projected Cash flow statements – Projections should cover a minimum three years This information will generally draw upon the following information sources – Discussions with the Promoter – Environmental factors e.g. exchange rate, inflation etc. – Basic understanding of accounting or the help of an accountant – Reasonable assumptions
How to write a business plan Part 7Risk analysis ; this is very while planning itis meant to anticipate any unlikelyunforeseen circumstance and possibleplan of action. This is crucial when thereso many uncertainties
How to write a business plan Part 8Implementation Plans: a summary of the time lines for business implementation
FYI1. Sources of help for information can be found on campuses, research libraries, online, trade associations2. Be conservative with projections3. Write it in an interesting manner so that other readers including yourself can wish to read it
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