”A dream isn’t something you see in your sleep; it’s something that doesn’t let you sleep.” Do you dream of starting or growing a great business, but need help fleshing out the details and coming up with a business plan? If you find yourself falling into this category, you should undoubtedly seek the help of a business professional who will provide you with the expertise necessary to getting your business started on the path to success! Get your business plan questions answered in this presentation by Kleos Africa consultant, Devon Neudorf. Devon is a Canadian National with a great deal of experience spanning multiple industries. He has spent time working for Fortune 500 Companies in both New York City and Toronto. Some of his specialties include Business Strategy, Business Transformation and the creation of Business Plans for new Startups or subsidiaries.

1. Developing a
Business Plan
Devon Neudorf – Kleos Africa Consultant

2. 1. ABOUT ME
2. WHAT IS A BUSINESS PLAN
3. IMPORTANCE OF A BUSINESS PLAN
4. ELEMENTS OF A BUSINESS PLAN
5. YOUR QUESTIONS, ANSWERED
6. QUESTIONS?
2
TODAY’S AGENDA

3. ABOUT ME

4. • Born and Raised in Niagara Falls, Canada
• Graduated Summa Cum Laude with a BBA,
Finance Specialization in New York
• Worked for Fortune 500 companies in both
New York City and Toronto
4
ABOUT ME

5. • Currently a Master in International
Business Degree Candidate at Ivey
Business School
• Ivey has been ranked the #1 International
MBA by Bloomberg Businessweek
• Ivey has been ranked the #1 Biz School in
the World for Leadership by CEOWorld
Magazine 5
ABOUT ME

6. WHAT IS A BUSINESS
PLAN?

7. • Definition: A written document describing the
nature of the business, the sales and marketing
strategy, and the financial background, and
containing a projected profit and loss statement
• In short, a Business Plan is essentially a road
map for your business
• It should be standardized to a certain degree as
to what it contains 7
WHAT IS A BUSINESS PLAN

8. IMPORTANCE OF A
BUSINESS PLAN?

9. If you don't know where you're
going, you might not get there.
- Yogi Berra
9

10. • To identify weaknesses and avoid the big mistakes
• To answer tough questions and help make critical decisions
• To prove the viability of the (proposed) business
• To reduce risk and understand the business landscape
• To secure financing
10
WHY IS IT IMPORTANT?

11. ELEMENTS OF A
BUSINESS PLAN?

12. ELEMENTS OF A BUSINESS PLAN
12
Executive
Summary
Business
Description
Product
Description
Market Analysis
Operational &
Managerial Plan
Financial
Projections
Supporting
Documents
1 2 3 4
6 7 8
Competitive
Analysis
5

13. • Also called a Statement of Purpose, should be no longer than one page
• Should succinctly tell the reader exactly what you are looking for, and why
• Should include key talking points such as:
• Business Description & Product/Service Description
• Competitive Advantage
• Financial Highlights to date
• Financial Requirements
• The Current Business Position
13
1. EXECUTIVE SUMMARY

14. • Begins with a short description/explanation of the industry
• Discuss what is going on as well as the industry’s outlook
• Ensure that all industry information is based on reliable data and facts
• Must include key talking points such as:
• Business Sector
• New or Established Business?
• Type of Ownership Group
• All Business Principals and their Involvements
• Customer Base & Market Size
• Distribution Network 14
2. BUSINESS DESCRIPTION

15. • Ensure the reader has a clear understanding of your product/service
• Explain how people use your product/service
• Clearly show how your product/service differentiates itself from
competitors
• Explain how your business will be profitable and gain a competitive edge
• Include information about any suppliers or experts involved
15
3. PRODUCT/SERVICE DESCRIPTION

16. • Arguably the most important section of any business plan
• This will help establish pricing, distribution and promotional strategies
• Begin with a market definition in terms of size, demographics, structure,
growth prospects, trends and sales potential
• Determine how often your product will be purchased and a projected
market share
• A Positioning Strategy must then be created to establish your product in
the eyes of the consumer 16
4. MARKET ANALYSIS

17. • Most importantly, you must come up with a pricing strategy for your
product/service which must be adaptable over time
• Some examples of pricing strategies include:
• Cost-Plus Pricing
• Demand Pricing
• Competitive Pricing
• Markup Pricing
• Finally, you must establish both a distribution network and a promotional
strategy
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4. MARKET ANALYSIS CONT.

18. • This section will include a number of different matrices such as:
• SWOT Analysis
• ANSOFF Matrix
• Competitive Landscape
• Porter’s Five Forces Models
• This will identify strengths and weaknesses of your competitors as well as
strategies for your business to differentiate itself
• This section should make it very clear to the reader as to who your target
market is, what your market niche is and exactly how you will stand out
against the competition 18
5. COMPETITIVE ANALYSIS

19. • This will describe how the business functions day-to-day on a continuing
basis
• The responsibilities of management and hierarchical structure must be
clearly defined
• Organizational logistics and the supply chain should be clearly defined
within this section
• All capital and expense requirements related to operations should be
clearly stated here
19
6. OPERATIONAL & MANAGERIAL PLAN

20. • Without sound financial documentation and projections, you will never be
able to gauge the success of your business and will have difficulty finding
investors
• There are three financial documents which form the backbone of your
business plan:
a) Income Statement
b) Statement of Cash Flows
c) Balance Sheet
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7. FINANCIAL PROJECTIONS

21. • Report stating the firm’s cash-generating
ability
• This reflects when sales are made and the
expenses incurred to create them
• This should be completed on an annual
basis
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7. a) Income Statement

22. • This shows how much cash you’ll need,
when you’ll need it and how you’re going
to get it
• This should be completed monthly in year
1, quarterly in Year 2, Annually afterward
• This ultimately shows the profit or loss
seen each month or year
• Running a loss here is a major red flag
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7. b) Statement of Cash Flows

23. • This breaks down all preceding financial
information into three categories: Assets,
Liabilities and Equity
• This will be projected for a new business, the
previous period for an existing business
• This projects the equity you will accumulate
from the business
• If a new business, you will also include a
personal balance sheet or financial statement 23
7. c) Balance Sheet

24. • Comparable to an Appendix for your Business Plan, include any other
documents that may be of interest to your reader such as:
• Contracts with Suppliers or Customers
• Copy of your lease
• If Applicable, Tax Returns for your last three years
• Your Resume
• Letters of Reference
• Letters of Intent
• Anything else you think is relevant to your business plan
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8. SUPPORTING DOCUMENTS

25. YOUR QUESTIONS,
ANSWERED

26. • Writing business proposals is not a skill learned overnight
• Seeking a business professional with experience can ensure that it is
thoroughly executed
• This is learned via a combination of classroom learning and real-world
experience
• The availability of Online MOOCs can help if you want to learn for free
• I recommend: edX: Professional Certificate in Business Model Innovation
by TUDelft
26
I want to learn how to write a business
proposal.

27. • To be a successful entrepreneur, you must have the passion and drive
to be successful
• An entrepreneur can certainly be MADE
• Although many think that risk is inherently shown by entrepreneurs
that is not the case
• The key trait of entrepreneurs is Opportunity Recognition
• Anyone can learn and develop the toolkit needed to become a
successful entrepreneur 27
Is an entrepreneur born or made?

28. • This ties in directly to the question as to whether an entrepreneur is born or
made
• You should not become an entrepreneur without first recognizing an
opportunity
• Without recognizing a gap in the market or an opportunity, you are
ultimately setting yourself up for failure
28
How do you get started or even know
which business to start?

29. • Being an entrepreneur is a 24-7 job
• You must be willing to make sacrifices to both your “family time” and “me
time” to get your business off the ground
• There is no time in life that is the right or wrong time to become an
entrepreneur
• It comes down to the opportunity you have recognized and the
commitment you are willing to put into creating a successful business 29
What is the best time to become an
entrepreneur?

30. • The answer to this question differs greatly depending on a number of
different factors
• Do you have the capital available to completely fund the business yourself?
• Are you looking to take a loan from the bank or are you willing to sell a
stake in your business to an investor?
• There are many different options and they can all lead to a successful
business venture 30
Does it make sense to finance the entire
business yourself, or should you take a loan?

31. • The best place to start here is with a comprehensive business plan as we’ve
spoken about today
• No reputable, institutional investor will loan you the funds to scale up
without a business plan
• With a business plan in place which shows your path to profitability, funding
becomes much more readily available
31
How can I raise funds as a home baker
looking to move to a bakery?

32. • We are extremely fortunate to be living in the digital age today
• Social Media is extremely influential on the purchasing habits of
consumers today
• By implementing an effective and consistent social media marketing plan,
you will have an opportunity to reach more potential customers at a
fraction of the cost for traditional marketing platforms
32
How can I scale up and be more effective
in my marketing on a low budget?

33. • Break-Even occurs when the total revenue of a business equals that of it’s
total costs
• This differs greatly and is extremely difficult to expect to breakeven at a
specific point
• However, a general rule of thumb is that you should prepare to run your
business for three years prior to reaching this point
• You must consider this when financing the business via loans or investors
33
What is the ideal break-even period for
a Startup?

34. ANY QUESTIONS?

35. Place your screenshot here
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You can find me on
the KLEOS Africa
Website if you are
interested in my
services.
Contact Info
https://www.kleosafrica.com/profile?id=29