2. Business Plan
A Business Plan is a
document, in which present
business idea, goals and
objectives, and how they
will be achieved.
3. Business Plan
Business plan is important for;
For Management of the Business
For obtaining financial support
For securing business contracts
A communication tool to
professional service providers
4. Contents of a Business Plan
There is no standard layout or format for a
business plan.
You can design it according your specific
objectives
However, you do need to adhere to logic in the
arrangement of the elements of the plan
the length of your business plan may be few to
thirty pages depending for your intention
In general, ten (10) pages to twenty-five (25)
pages are considered sufficient for most
purposes
5. Outline of a Business Plan
1. EXECUTIVE SUMMARY
This is a very important part of your business plan since it is the
first part people are going to read.
Executive Summary is prepared only after you have completed
all the sections of the main body
A good Executive Summary is short (no more than 2 pages in
length), brings out all the important aspects of your business
plan, and holds the attention of the reader
6. Executive Summary
The executive summary will cover the following contents;
Business Description
Ownership and Management
Key Initiatives and Objectives
Market Opportunities
Competitive Advantages
Marketing Strategy
Summary of Financial Projections
7. 2. BUSINESS OVERVIEW
This section introduces the reader to your business.
The contents of the business description will be;
Business History
Vision and Mission Statement
Objectives
Ownership
Location and Facilities
8. 3. PRODUCTS
Here, you tell the reader about the products (goods and/or
services) you will be selling
You will briefly describe and explain
Products And Key Features
Production Process
Comparative Advantages in Production
Future Products
9. 4. INDUSTRY OVERVIEW
In this section, you will describe the industry in which your
business will operate
This will demonstrates to the reader that you understand
your industry and hence inspire their confidence in your
business plan.
Discuss the overall size of the industry, the key product and
market segments, customer behaviour (buying criteria and
processes), types of business in the industry, trends in the
industry
10. This will contain the following;
Market Research
Size Of The Industry
Key Product Segments
Key Market Segments
Purchase Process And Buying Criteria
Description Of Industry Participants
Key Industry Trends
Industry Outlook
11. 5. MARKETING STRATEGY
In this section, you will describe your marketing strategy.
this shows the reader how your business will fit into the industry
you have described above.
You will mention this the following;
Target Markets
Key Competitors
Competitive Position
Pricing Strategy
Promotion Strategy
Distribution Strategy
12. 6. MANAGEMENT AND STAFFING
Ultimately the success or failure of your business is
determined by the quality of personnel.
You will therefore tell the reader about your management
team and staff and their relevant expertise and experience
Mention the following;
Organizational Structure
Management Team
Staffing
13. 7. REGULATORY ISSUES
All businesses are subject to regulation of one kind or other.
the regulatory issues you have to take into account may be
few or many according to your business and industry
Besides trading licenses,
Do you need a permit from a specific Government
Ministry or Institution
Does the Revenue Authority require you to meet
certain conditions before you commence operations
Are there any other regulations specific to your
products?
14. 8. RISKS
In this section, you identify the risks faced by your
business and how you would minimize their negative
impacts
These risks include;
Market Risks
Other Risks
15. 9. IMPLEMENTATION PLAN
Your business plan includes various things that will
need to be done.
In this section you summarize these activities, state who
is going to do them and when.
Mention the;
Activities and Dates
16. 10. FINANCIAL PLAN
This section considered by many to be the most important as it
shows your financing needs as well as the profit potential of
your business.
A good financial plan gives confidence to the reader that you
have a good understanding of your business.
The financial plan basically comprises projections or forecasts
of four financial statements.
17. The financial plan can be included;
Projected Annual Profit And Loss Statements –
e.g. One Year
Projected Monthly Cash Flow Statements – e.g.
Six Months
Projected Annual Cash Flow Statements – e.g.
One Year
Projected Annual Balance Sheets - e.g. One Year.
18. Factors to Consider In
Preparing a Business Plan
The business plan needs to be based on the realities of the
environment in which the business will operate
Collect the required data and information and record them in
your notebook.
Compile the information collected into the business plan as per
given format
19. Steps Involved In Writing a
Business Plan
Have at hand the Business Plan notebook and the
following documents:
Your environmental analysis/scan report.
Your market research/survey report.
Your business idea/concept.
Formulate your business goals
Formulate your business goals.
Prepare a description of your industry.
20. Prepare a description of your business venture.
Prepare your marketing strategy/plan.
Prepare your production strategy/plan (for manufacturing
or service).
Prepare your management/corporate structure.
Prepare your risk assessment.
Prepare your action plan.
Prepare your financial forecasts
Prepare your financing and capital requirements.
Prepare your appendices (if any)
21. Write the main body of the business plan (25 pages inclusive of
appendices is sufficient length for most purposes)
Write the Executive Summary
Prepare the table of contents (if the plan will be given to external
users).
Prepare the cover sheet.
Finally, arrange the pages in the following order and bind in an
attractive manner:
Cover sheet
Table of contents
Executive summary
Main body
References
Appendices
