TOPIC 5 Business Plan MIND MAP What is a business plan? The importance of business plans What needs business plans? Essential elements of good business plans Guidelines in preparing good business plans Pitfalls to avoid in planning

MIND MAP

What is a business plan?

The importance of business plans

What needs business plans?

Essential elements of good business plans

Guidelines in preparing good business plans

Pitfalls to avoid in planning

5.1 What is a business plan A written document which describes in detail the overall plans of a business in which an entrepreneur aims to get involved Purposes:- Forces to arrange their thought in a logical and structural order Create a business framework by defining activities, responsibilities and objectives to be achieved Encourage in stimulating reality and anticipate pitfalls before they occur. Develop strategies to meet those objectives As a working action plan or guidelines Enabling in identifying constraints

A written document which describes in detail the overall plans of a business in which an entrepreneur aims to get involved

Purposes:-

Forces to arrange their thought in a logical and structural order

Create a business framework by defining activities, responsibilities and objectives to be achieved

Encourage in stimulating reality and anticipate pitfalls before they occur.

Develop strategies to meet those objectives

As a working action plan or guidelines

Enabling in identifying constraints

5.2 Importance of business planning Increase opportunity for success Develop mission business Determine the main competitor/s Determine the right way of managing the business Increase the stakeholders confidence Determine barrier in business As a performance tool

Increase opportunity for success

Develop mission business

Determine the main competitor/s

Determine the right way of managing the business

Increase the stakeholders confidence

Determine barrier in business

As a performance tool

5.3 Who needs business planning? The management team The shareholders Bankers or creditors Customers Suppliers The employees

The management team

The shareholders

Bankers or creditors

Customers

Suppliers

The employees

5.4 Essential elements of a good business plan Executive summary Market analysis Marketing and sales strategies Services or product line Organization and management Funding request Financials The appendix

Executive summary

Market analysis

Marketing and sales strategies

Services or product line

Organization and management

Funding request

Financials

The appendix

5.5 Guidelines in preparing business plans Keep business plan short Be focused Reveal people involved and their roles Avoid the use of Jargons Information should be based on study Be realistic and objective

Keep business plan short

Be focused

Reveal people involved and their roles

Avoid the use of Jargons

Information should be based on study

Be realistic and objective

5.6 Pitfalls to avoid in planning No realistic goals Failure to anticipate obstacles No commitment or dedication Lack of business or technical experience No market niche

No realistic goals

Failure to anticipate obstacles

No commitment or dedication

Lack of business or technical experience

No market niche

THE END