AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
Business Planning for Social Enterprise Cambodia April 2015
1. Business Planning for Social
Enterprise
A Presentation for Social Enterprise Cambodia Conference
4 April 2015
William P. Kittredge, PhD
President, Cervelet Consulting
2. Why Have a Business Plan?
Value lies in the process of researching and thinking
about your business in a systematic way
The act and learning process of making a business plan
may make you a better entrepreneur
Allows you to avoid big mistakes by developing a game
plan1
1
http://www.inc.com/articles/201107/5-reasons-why-you-need-a-business-plan.html
3. Why Have a Business Plan?
One survey study shows
that startup companies
who completed business
plans were almost twice as
likely to effectively expand
their businesses or acquire
capital compared to those
who didn’t.2
2
http://smallbiztrends.com/2010/06/business-plan-success-twice-as-likely.html
7. Products and Services
What factors will give your product or
services competitive advantage or
disadvantage?
What are the pricing, fee, or leasing
structures of your products or services?
10. Marketing Plan
Market Research
Why? Make sure your business is on track
How? Public information & gathering your own data
Economics:
What is the total size of your market?
What are its growth potential and opportunities?
What barriers to entry do face?
Product
For each product or service
What are the most important features and why?
What will the product do for the customer?
11. Marketing Plan
Customers:
Who are your target customers (businesses or consumers)?
What are their characteristics (demographics)?
Competition
What products and companies will compete with you?
How will your Competitive Analysis look?
13. Marketing Plan
Niche
How does your company fit into the world?
Strategy
Promotion: How will you get the word out to
customers?
Promotional Budget: How much will it cost to get the
items needed for promotion?
Location: Is your location important to costumers? Is
it convenient?
Distribution Channels: How will you sell your
products/services?
14. Marketing Plan: Sales Forecast
Spreadsheet
Attaches numbers to
your plan
Based on historical sales,
marketing strategies,
market research, industry
data
Two forecasts: “best
guess” and “worst case”
18. Management and Organization
Who will manage the business on a day to day basis?
What experience does that person bring to the business?
What special and distinctive competencies?
What is the plan if this person is lost in incapacitated?
19. Management and Organization
Identify and list professional and advisory support
– Board of directors
– Management advisory board
– Attorney
– Accountant
– Insurance agent
– Banker
– Consultant(s)
– Mentors and key advisors
23. Startup Expenses and Capitalization
• Estimate expenses. Where you need sufficient capital?
• Your startup business may cost more than you anticipate
• Add “padding” to the budget
• Add separate “contingencies” to account for the unexpected
• Explain your research, sources, amounts, and terms of
proposed loans.
• Explain how much each investor contributes and what percent
of ownership each will have.
26. Financial Plan
• 12-month profit and loss projection What it
will take to make a profit and be successful?
• 3- year profit and loss projection Optional
projection if company wants to forecast
longer term
• Projected cash flow Plan how much you
need before startup for preliminary expenses,
operating expenses, and reserves
28. Financial Plan
• Opening day balance sheet what
assets the company holds, what its
liabilities are
• Break-even analysis predicts sales
volume at a given price required to
recover total costs
32. Appendices
• Include details, studies, graphs and charts in
your business plan, for example:
• Brochures and advertising materials
• Industry and market research studies
• Blueprints and plans
• Maps and photos of location
• List of equipment owned and to be purchased
• Copies of leases and contracts
• Letters of support
• List of assets available for a loan
34. Refining the Plan
For Raising Capital
Bankers: Amount of loan, how the funds will be used,
what will it accomplish, requested payment terms
Investors: Funds needed for short term and long term,
how the funds will be used, estimated return on
investment, exit strategy for investors, financial reporting
39. Cervelet Management &
Strategy Consultants, LLC
Www.cerveletconsulting.com
We have developed some expertise assisting social
enterprises in Cambodia and Thailand. If you have further
questions or would like to inquire about our business
planning or social investor recruiting services, please contact
us via our webpage or through Facebook.
Editor's Notes
Opening day balance sheet what assets the company holds, what its liabilities are
Assets – Liabilities= owner’s equity
Startup expenses and capitalization spreadsheet
Break-even analysis predicts sales volume at a given price required to recover total costs
Planned production levels
•Anticipated levels of direct production costs and indirect (overhead) costs—how do these compare to industry averages (if available)?
•Prices per product line
•Gross profit margin, overall and for each product line
•Production/capacity limits of planned physical plant
•Production/capacity limits of equipment
•Purchasing and inventory management procedures
•New products under development or anticipated to come online after startup