States the various elements of a business plan

1. ELEMENTS
OF A
BUSINESS PLAN

2. Introduction
A business plan is a document
outlining the goals of a business and
the strategies to achieve these goals.
It is mainly prepared by new
businesses or by ones making major
changes.

3. The BUSINESS PLAN
This is a document that outlines
 what the entrepreneur hopes to
achieve from being in the
business
 the way the business will achieve
its aims and objectives
 how various resources will be
organized to meet these goals.

4. BENEFITS of preparing a PLAN
1. It ensures that careful research
is conducted into the feasibility
of the business
2. It anticipates needs and
problems which can be planned
for in advance
3. It provides a written document
that can be used when
requesting financing

5. Contents of a Business Plan
Executive summary
Operational/Production Plan
The Business Opportunity
Marketing Plan
Financial Forecast

6. 1. EXECUTIVE SUMMARY
 The Executive Summary is a synopsis of
the full business plan. It presents the
salient points of the plan.
 It should identify; the business, its main
objectives, the owners a brief description
of the product and the nature of the
business.
 It should also state any legal form of
ownership and government regulations
that affect the business.

7. 2. The Operational Plan
Some details in the operational plan includes;
 Description of the goods/services
 Suitability of location for production/operations
 Describe type and level of production
 Labour skills required
 Quality control
 Technology required
 Raw materials and other input required, as well
as sources
 Ethical issues related to production

8. The Business Opportunity
Some details in the business opportunity
includes;
 The potential size of the market
 The characteristics of the target
customer base
 The degree of market competition
 Security issues
 Access to transportation

9. The Marketing Plan
Some details in the marketing plan includes;
 Organisation of the marketing department
 Market research
 Product strategies (design, branding, packaging)
 Pricing strategy
 Distribution strategy
 Promotion strategy
 Consumerism issues
 Ethical issues relating to the marketing
strategies

10. The Financial Plan
Some details in the financial plan includes;
 Purposes for which finance is needed
 Production costs
 Other costs (capital goods)
 Projected performance
 Capital instruments
 Collateral
 Financing required
 Ethical issues related to financing