Business Plan Competition Template

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BusinessusinessPlanningPlanning

for thefor the

SocialSocialEnterpriseEnterprise

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Copyright 2000 Sutia Kim Alter. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License (http://creativecommons.org/licenses/by-sa/3.0/)


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A Business Planning Reference Guide for Social Enterprises 15

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Failing to plan is planning to fail.

Effie Jones, Educator

What Is a Social Enterprise?

ocial enterprise is a generic term for a nonprofit enterprise, social-purposebusiness or revenue-generating venture founded to support or create economicopportunities for poor and disadvantaged populations while simultaneously operat-ing with reference to the financial bottom line.1A social enterprise may use revenue

it generates to reduce the need for external donor dollars to cover program costs, oras a means to cross-subsidize other social programs. A social enterprise can also bereferred to as an affirmative business, business development service provider,employment creation enterprise, or microfinance institution depending on thetype of business it is in, the language of the nonprofit sector, the business modelused, and the target population it serves. Try not to get stonewalled by vocabularyused in one particular industry or another (see Use of Language in About thisManual for definitions used in this book). Specifically, social enterprise literature issegmented by international and domestic program sectors. Despite specific com-plexities related to operating in overseas markets versus US markets, where the busi-ness framework is less ambiguous, Save the Children (SC) is of the opinion that prac-titioners in both disciplines face similar programming challenges. International and

domestic social entrepreneurs venture to gain practical lessons, applicable tools andknowledge from each other provided they remain open-minded and avoid gettinghung up on terminology.

Social enterprises are highly differentiated depending on the needs of their tar-get populations, and their program and financial objectives. Thus, social enterprisescan be take several forms: a direct employer of disadvantaged, at-risk or poor popu-lations; or a provider of services to disadvantaged business owners (exhibit 1A:Social Enterprise Approaches). Enterprise models are configured to simultaneouslyserve their clients and survive in themarket. Some sell products or services directlyto their target population: In this case the market and the client are the same(exhibit 1B, model 1). This is the model typically used for a financial service ormicrofinance program whereby enterprise viability is achieved through the sale ofsufficient volume of services, and social impact via providing poor entrepreneurswith access to affordable credit to fuel their businesses. Other social enterprises actas intermediaries, buying goods produced by poor or disadvantaged entrepreneursand then selling these products in external markets (exhibit 1B, model 2). Marketingenterprises or economic development programs use this approach, realizing incomethrough a markup on products to final customers and achieving social impactbyhelping the disadvantaged self-employed access markets for their products. A third

1Emerson, Jed, and Fay Twersky. 1996.New Social Entrepreneurs: The Success, Challenge andLessons of Non-profit Enterprise Creation. San Francisco: Roberts Foundation.

Chapter 1

Marketall the peo-ple who have a spe-cific, unsatisfied needor want and are will-ing and able to pur-chase a service orproduct to satisfy thatneed.

Business develop-ment services(BDS)developmentservice interventions

that aim to reducebarriers faced by

microentrepreneurssuch as marketaccess, restrictiveregulations, and poorinfrastructure, all ofwhich impedemicroentrepreneurs'productivity, profits,and income. BDS pro-grams may also seek

to leverage opportuni-ties for the purpose ofprofit maximization.Through addressing

barriers, businessdevelopment servicesnot only increase theprofitability of enter-prises but transform

them as well as theenvironment in which

they operate. Businessdevelopment servicesfall into a number ofcategories: linkages tomarkets, technology,referral services, busi-ness skills develop-

ment, common serv-ice facilities, organiz-ing, and advocacy.(Nelson, 1996).



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Managing the Double Bottom Line:16

possibility is a social enterprise that employs its target population and sells productsor services on the open market (exhibit 1B, model 3). This type of social enterpriseis viable in much the same way as a private business; social impact is accomplishedby employing a target population that may otherwise be barred from work opportu-nities.

EXHIBIT 1A: SOCIAL ENTERPRISEAPPROACHES

#1: Employment-Based Approach #2: Entrepreneur-Based Approach

Social Enterprise (1) Social Enterprise (2)

DIRECT EMPLOYEROF DISADVANTAGED

WORKERS

PROVIDES SERVICES

TO DISADVANTAGEDSELF-EMPLOYED

POPULATION

EXHIBIT 1B: SOCIAL ENTERPRISE MODELS

CUSTOMERTARGET

POPULATIONSE

SE MARKET

SOCIAL IMPACTVIABILITY

MODEL 1: ENTREPRENEURMODEL

Social enterprise sells needed business products and services directly to its target

population, self-employed poor or disadvantaged populations, to improve their busi-ness income. This is a classical model of Business Development and MicrofinancePrograms.

Social impacta positive effect onthe target population as a result of anintervention. Social impact can bemeasured numerous ways; Save theChildren primarily uses increased eco-nomic security and its reverberationsfor children.

Microfinance programType ofeconomic development programmingthat assists low income and poor self-employed people through the provi-sion of financial services (credit, sav-ings, insurance, etc.). Traditionally,microfinance programs provide reli-able access to collateral-free smallworking capital loans (hence thename micro) to a poor or disadvan-

taged target population deemeduncreditworthy by the formal sector.

Target populationthe poormicroentrepreneurs whose income oreconomic opportunity BDS programsseek to improve.



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SE MARKET

CUSTOMERTARGET

POPULATION SE

CUSTOMERSE TARGET

POPULATION

SOCIAL IMPACT

SOCIAL IMPACT & VIABILITY

VIABILITY

PRODUCER SE MARKET

MODEL2: MARKETINTERMEDIARYMODEL

MODEL3: EMPLOYMENTMODEL

Social enterprise acts as an intermediary between the target population and themarket; it achieves viability through the sale of client-made products to the final cus-tomer and helps clients reach markets otherwise inaccessible to them.

This social enterprise is a direct employer of its target population, (disadvantaged, at-

risk individuals); it attains viability through the sales of its products and services to anexternal market.

PARENT ORGANIZATION ROLEThe role of the parent organizationan international private voluntary organiza-tion (PVO) or nonprofit organizationthat initiated the business program or enter-prise also varies. Parent organizations provide oversight to the social enterprise andmay do so by working through another nonprofit partner, or directly with a socialventure. The parent organization (PO) is also responsible for the provision of techni-cal assistance to build capacity enterprise aimed at developing a sustainable socialventure. Some parent organizations elect to outsource technical assistance full timeor on occasion by contracting a separate entity or independent consultant (exhibit

1B: Relationship with Parent Organization.) The decision to outsource technicalassistance depends on in-house capabilities and mission compatibility of the parentorganization.

The commonality among all types of social enterprises is that they are nonprofitprograms that seek to achieve social impact objectives and financial viabilitythrough the creation of an enterprise that serves disadvantaged populations. Socialenterprise revenues must cover normal business operations as well as subsidizesocial program costs incurred by working with its target population. Save theChildren has piloted all models and approaches of social enterprise programs shownin the diagrams; it is distinct only in that it uses modified private-sector businesstools and puts viability at the forefront as the means to achieve social impact.

Financial via-bilitya socialenterprise is con-sidered financiallyviable when it nolonger requires sub-sidies. It may stillrequire loans orother investments tosupport its busi-ness operations asmany profitable pri-vate sector enter-prises do. A finan-cially viable socialenterprise would beone that is able tosecure the neces-sary funds throughregular, unsubsi-dized financialchannels. (See alsoviability).

Target popula-tionthe poormicroentrepreneurswhose income oreconomic opportu-nity BDS programsseek to improve.



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Business Planning for the Social Enterprise

Social enterprise programs are inherently highly differentiated, making it difficult tofit them into a neat framework. Mass customization at this point can take place onlyin the tools we are able to provide, one of which is business planning. The type of

business intervention you choose and how it is structured will be largely dependenton the conditions specific to your market, industry, operating environment, and tar-get population and, therefore, will be unique to your program. No matter what typeyou choose, a business plan is a standard tool that can be applied to most socialenterprise models. The focus here, however, is on Save the Childrens version of asocial enterprise; it is up to you to make necessary adaptations to fit the needs ofyour program.

WHY ABUSINESS PLAN?Nonprofit programming is changing. Social enterprise programs are increasingly partof the nonprofit program agenda. The inevitable consequence is that business isbeing integrated into nonprofit culture. Phrases like operational sustainability,

financial viability and cost recovery have become a standard part of the nomen-clature. There is now considerable agreement among agencies of the importance ofoperating in a businesslike way.2 Indeed, more and more organizations and donorsare viewing interventions through a business lenswith respect to performance-based objectives, results-oriented outputs, and viabilitythus leading the way for

2Gibb, A.A., and G. Manu. 1990. Design of extension and related support services for small scaleenterprise development.International Small Business Journal 8, no.3.

PARENT ORGANIZATIONOR IMPLEMENTING

PARTNERPARENT ORGANIZATION

SOCIAL

ENTERPRISE IMPLEMENTING

PARTNER

SOCIAL

ENTERPRISE

EXHIBIT 1A: RELATIONSHIP WITH PARENT ORGANIZATION

#1: Direct Implementor #2: Works throughImplementing Partner

CONTRACTED

TECHNICAL

ASSISTANCE

CONTRACTED

TECHNICAL

ASSISTANCE



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mainstream change. Tools and methods borrowed from the private sector are beingadapted and applied to development programs as a means to better serve under-privileged and disenfranchised populations.

Save the Children is one organization taking this approach. At the same time,we recognize that standard business tools are not necessarily distributed throughnormal nonprofit channels; nor are they translated for use in the nonprofit context.

Business terminology, corporate case studies, and the single bottom-line focus oftenact as a smoke screen, barring nonprofit professionals from utilizing the importantresources available in the private sector. Nonetheless, as we have witnessed in themicrofinance discipline, tools borrowed and adapted from the banking sector canhelp practitioners do better at doing good. To this end, SC/US is attempting tobridge the culture gap between the business and nonprofit sectors with a modifiedbusiness planning tool that addresses the double bottom line (social and businessgoals) of social enterprises.

BUSINESS PLANNING FORYOUR SOCIAL ENTERPRISE PROGRAMDeveloping a business plan does not mean that you have to compromise or forsakeyour organizations social objectives in favor of running a profitable enterprise. On

the contrary, a business plan is a tool intended to help increase the overall perform-ance and impact of your social enterprise program. A good business plan should bepersonalized for your program, embodying its goals, culture, and values. At the sametime, it furnishes you with a proven instrument to operationalize your goals into aprogram that both provides business services to the poor or disadvantaged and canwithstand the pressures of the marketplace. In sum, a business plan is a prescribedmethod for clarifying the objectives of your social enterprise program and develop-ing a comprehensive plan to realize those objectives.

WHAT IS ABUSINESS PLAN?A business plan is the road map of your social enterprise program; it directs yourstakeholders and staff on how they will execute the intervention, manage the pro-

gram, and ultimately realize the programs goals and objectives.

A business plan:

articulates the mission of your program;

defines astrategybased on needs of the target population and customers, mar-ket conditions, industry forces, operating environment, and institutional profiles;

outlines specific actions to achieve program goals and objectives;

establishes targets for planning, measuring, and improving performance;

motivates employees;

communicates your ideas and plans to your stakeholders (board of directors,donors, partners, clients);

projects necessary resources, costs, and revenues of your program;

provides a basis for sound decision making.

WHYIS ABUSINESS PLAN IMPORTANT?The success of your social enterprise depends largely upon the decisions you make.A business plan is fundamentally a planning tool; it allocates resources and measuresthe results of your actions, and it helps you set realistic goals and make decisions. Alack of planning leaves you poorly equipped to anticipate future decisions andactions you must take to run your social enterprise. Inherent within a business planare several tools that facilitate planning and, hence, decision-making.

Stakeholderaperson entrustedwith a stake or an

interest; somethingstaked for gain orloss. (Merriam-Webster) A stake-holder is someonevested inor willing

to invest ina socialenterprise, someonewilling to take a riskregarding its successor failure. Stakehold-ers can be donors,international PVOs,nonprofits, local

NGOs, parent organi-zations, enterprisestaff, board mem-bers, clients, etc.

Strategya carefulplan or method forachieving ends. In abusiness plan, theseends are the objec-

tives.



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4A Design Tool

The rigors of developing a business plan help you think through the design ofyour intervention and conceive a program that is realistic and doable within thegiven context. Precursors to creating a business plansuch as analyzing the mar-ket, the operating environment, implementing partners capabilities, and financialneedsprovide an opportunity to examine your social enterprise program in itsentirety from an objective, critical perspective to determine whether what you areplanning is feasible, and how it can best be implemented.

4A Strategic Planning Tool

The combined tasks of inward and outward examination in a business plan, frominstitutional self-assessment to competitive analysis, help you plot a strategy foryour social enterprise program. Strategic thinking is necessary if your social enter-prise is to survive in a competitive marketplace. Business plans pit your productsor services against those of competitors, examine your market position, and keepyou abreast of the twists and turns in a dynamic operating environment to helpyou make strategic decisions based on these fluid variables.

4A Performance ToolA business plan is an operating plan that guides the management of your socialenterprise program and helps you work effectively toward its success. It allowsyou to set realistic targets and thus also provides a basis for measuring and moni-toring your programs performance against these targets. Using the business planas an ongoing performance tool helps practitioners modify future targets based onactual performance of the social enterprise.

4A Communications Tool

The business plan communicates your programs mission, management approach,objectives, and proposed methods of achieving the objectives to staff, leadership,clients, and donors. A business plan also helps you gain credibility with potential

partners and donors by demonstrating that your social enterprise program has aclear direction and thoroughly conceived strategy to achieve its ends.

4A Financial Tool

This section of the business plan serves several financial management functions.The budget establishes how resources will be allocated in your program. Financialstatements help you understand your financial position and the cash needs ofyour business. Calculating your enterprisesbreak-even pointtells you how muchincome is required to cover expenses and gives you a basis for pricing services orproducts. Finally, the financial section provides estimates of how much money isneeded for financing start-up expenses, the day-to-day costs of running opera-tions, and your income.

4A Management Tool

As previously stated, a business plan tells stakeholders where you are going andhow you plan to get there. It is important for the social enterprise program man-agement team to continually refer to the business plan to ensure that the enter-prise is not going off course and that the business plan accurately reflects changesin the strategic environment or market conditions. This process of creating andthen frequently revisiting and refining the business plan hones critical thinking andanalytical and decision-making skills, enabling the management team to trou-bleshoot problems related to competitors or changing economic factors and takeadvantage of new promotional or product opportunities.

Break-even pointthe point atwhich revenues from sales equalcosts.



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4A Human Resource Tool

A well-articulated program mission, clear goals and objectives, and a comprehen-sive plan are the keys to rallying motivation and teamwork in your social enter-prise program. Low motivation stems, in part, from poor planning and ambiguityin the workplace. If staff, management, and leadership do not know preciselywhat they are trying to achieve, it is hard to create a coherent, collaborative, andproductive work environment. Business plan targets and outputs are used to cre-ate human resource plans and can also be used as performance measures forindividual and collective performance.

4A Marketing Tool

The target market segment of the business plan gives you important informationfrom which to derive your marketing plan.Market research techniques help youidentify who your customers are and where they are located, in addition to distin-guishing their preferences, needs, and desires. The marketing plan that results is astrategic guide to reaching your customers through promotional efforts, productenhancements, and changes in price and distribution channels.

4A Donor and Investors GuideIn the private sector, a business plan is used to attract investor financing. The planis a prospectus of sorts for financiers to verify that the person seeking funds has (1)a solid business idea built on a market that is sizable enough to support continuedviability; (2) a concrete plan to reach that market and manage operations; and (3)realistic financial forecasts of the business future profitability. In short, investorswant a return on their investment, and a sound business plan is the best means tocommunicate that potential to investors.

In the world of business development services, donors are the investors. As thereturn on their investment, they want recipient institutions to meet their targetsfor social impact, cost-effectiveness, revenue, cost recovery, and scale. It is Save

the Childrens belief that, as in the private sector, business plans are the mostcomprehensive guides to our social enterprise programs that we can give ourinvestors. Although business plans are not currently a standard requirement forrequests for applications (RFAs) or grant proposals, donors are demonstrating aheightened interest in them.

Business Plan Brass Tacks

NEWVERSUS EXISTING SOCIAL ENTERPRISESThe business planning process is somewhat different for new social enterprises thanit is for existing ones. Established social enterprises have a track record and historic

information to draw from regarding their operations, costs, marketing experience,and staff that contribute to the development of a solid business plan. Every enter-prise, however, has to start at the beginning and develop a first plan. If you havebeen involved in an existing social enterprise, you should be able to make fairlyaccurate projections and devise strategies steeped in experience. But if yours is anew business, we recommend that you develop your plan for the first year of itsoperations only. Start-up enterprises may not have all the information required tocomplete some of the exercises in this manual.

Market researchsystematic, objectivegathering of informa-

tion to support a busi-ness' marketingefforts. Marketresearch uses specific

methods and toolssuch as surveys,interviews, focusgroups, product tests,etc., to understand thesize and scope of cer-

tain markets and con-sumer behavior as

they relate to the prod-uct or service thecompany sells.



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COMPONENTS OF ABUSINESS PLANThe structure of a business plan is a series of plans built around your vision and mis-sion statements that are intended to execute your objectives and business concept.

BUSINESS PLAN OUTLINE

Executive Summary

Vision and Mission Statements Objectives

Description of the Social Enterprise

Target Market

Business Assessment

Operating Environment

Competitive Analysis

Marketing Plan Operations Plan/Production Plan

Human Resource Plan

Financial Plan

Appendices

TARTINA

product sales at

Annual ProcessedFoods Trade Show

in Port-au-Prince



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VISION

MISSION

OBJECTIVES

OPERATIONS

PLAN

HUMAN

RESOURCES

PLAN

FINANCIALPLAN

MARKETING

PLAN

MARKETRESEARCH:

TARGETMARKET

COMPETITORS BUSINESSASSESSMENT

EXHIBIT 1D: BUSINESS PLAN INFORMATION FLOWS

BUSINESS PLAN ESSENTIALSA good business plan conveys your ideas, goals, and plans for the social enterpriseprogram. To accomplish this, a business plan should:

4 Indicate focus. What is the core thrust of your social enterprise?

4Demonstrate an understanding of the target market. Who are your cus-tomers; where are they; and what are their needs and wants?

4 Evidence an appreciation of stakeholders interests and needs. What are the

essential interests of your donors, leadership, staff, clients, management, andpartners; and how are their needs embodied in your social enterprise program?

4 Confirm that your business concept is solid and market driven. How does

your business concept respond to the market, and what strategy will you use toadapt this concept in the face of changing market conditions?



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4 Prove there is a sufficient market to support the products or services you

are selling. Is there a large enough pool of potential customers with a need ordesire, sufficient income and the willingness to pay for your products or servicesto support your business? Is this market reachable?

4 Post financial projections that are healthy and realistic. Do your financial

projections clearly show that you will be able to meet your financial objectives(i.e., you will cover a specified percentage of your expenses with income thatyour business will generate)? Or are you over- or underestimating expenses orrevenues?

4 Demonstrate that key staff and management personnel are competent and

experienced. What skills and experience do your management and staff have tooperate your business successfully?

OUREXAMPLE: TARTINA ENTERPRISEThroughout this manual we use a fictional case, TARTINA Enterprise, which isloosely based on Save the Childrens social enterprise program in Haiti, to depict

business planning processes.3 In our example TARTINA is a food-processing socialenterprise located in a rural Haitian village called Colline, about 21/2 hours outsidePort-au-Prince. Its business is to transform agricultural productspeanuts and fruitinto peanut butter, jams, and jellies. TARTINA began as a Save the Children/Haitiprogram designed to link rural food processors to commercial markets and wasfunded by a donor called ASSIST. The program was initiated through SCs local part-ner, a nonprofit called the Association pour le Dveloppement Economique (ADE),then gradually evolved into a social enterprise, assuming its marketing brand name,TARTINA. TARTINA comes from the French verb tartiner, to spread, and the nountartine, a sandwich. Although the enterprise is still warehoused in ADE, a multisectororganization that specializes in education and community development, little pro-grammatic crossover remains. In our example, TARTINA operates as a business withits own mission and objectives and has hired many new enterprise staff. It has justcompleted its first one-year business plan, which is used as a running example inthis manual.

Please keep in mind that depending on the industry, the type of social enterprise,and the products or services it provides, your program may or may not bear a closelikeness to our example. Our fictional social enterprise manufactures products,whereas many social enterprises render services. An enterprise that sells servicesdirectly to its target population or clients will be configured differently from ourexample, which is operated by the target population but sells its products in a com-mercial market. The same is true for a social enterprise that is composed of severalpartner organizations or a network, since TARTINA works with only one local partner.

The TARTINA case is intended to be a user-friendly aid and not an example of aflawless social enterprise program that practitioners should emulate. Therefore, theexample herein should be regarded simply as an illustration of the various forms asocial enterprise business plan can take. While the sections of a business planremain more or less constant for every social enterprise, the particular emphasisgiven to each section will vary according to the type of business and its stage ofdevelopment.

3 See About This Manual in the introduction for a complete explanation of our case studyapproach and philosophy. Also see Chapter 9: Lessons Learned for a summarized overview ofSave the Childrens experience in Haiti with TOPLA, from which this example is drawn.



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The Business Plan Process

PREPARATION TIME CAN BE BROKEN DOWN INTO TWO SEGMENTSMARKET RESEARCH AND CREATING THE ACTUAL BUSINESS PLAN.

L Market research should be extensive and can take weeks or months depending

on depth of study, techniques chosen (surveys, questionnaires, or focus groups),and availability of information. To some extent, time needed for market researchwill be driven by the number of products or services you are offering, the loca-tion of your target market, the complexity of the industry, and the competitiveand operating environments. We strongly recommend not taking shortcuts whenit comes to doing market research; the overriding reason identified for SCs pastsocial enterprise program failures was inadequate market research prior to launchingthe program.

Market researchsystem-atic, objective gathering ofinformation to support a busi-ness marketing efforts.Market research uses specificmethods and tools such assurveys, interviews, focusgroups, product tests, etc., tounderstand the size and scopeof certain markets and con-sumer behavior as it relates to

the product or service thecompany sells.This manual neither provides comprehensive information on market

research methodologies, nor gives advice on which approaches to use when

conducting market research. Providing guidance on which market research

techniques to employ in preparation for your social enterprise program isbeyond the scope of this manual. Conducting solid market research before

you start is imperative (see Lessons Learned, chapter 9). If you do not have a

competent and experienced market researcher on staff, we strongly encour-

age contracting a market research professional to assist with this step.

L Business plan preparation is to some degree dependent on coordinating theavailable time of key participants and stakeholders in your social enterprise.Segments that require the participation of executives, senior staff, or those withdual responsibilities are harder to schedule than those that involve staff membersdedicated 100 percent to the social enterprise. If you are planning to hold a

series of workshops, meetings, discussion groups, or mini-retreats with partici-pants, allow a minimum ofsix to eight weeks to complete the business plan.Consensus building sometimes takes time. Whats more, we have been surprisedby how this process has illuminated the need to go back and do additionalresearch. In short, give yourself ample time, including contingency time of a fewweeks, for completing unforeseen necessary research and smoothing any ruffledfeathers.

FINANCIAL CONSIDERATIONSPre-program research and business plan development take considerable time, whichimplies a financial cost. Prior to embarking on social enterprise planning and devel-opment, allocate a budget for preprogram expenses to be incurred during the mar-

ket research and business plan development phases. Although the upfront costs maybe considerable, careful planning will pay off in the long run.

LENGTHA good business plan must be thorough, which will be a factor in its length. It shouldbe long enough that your information is complete but not so long that it is verboseor redundant. There is no hard and fast rule, so you must use your own judgment.

TIME PERIODBusiness plans need to cover a specific period of time. Although there is no pre-scribed duration, most are developed for one to five years of operation. As is the



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case with private companies, a business plan may be linked to financing needs for acertain stage of enterprise development, such as start-up or expansion. If you arewriting a business plan as part of a grant application requirement, it may coincidewith the funding cycle but should nonetheless reflect business reality and not bedriven solely by the time frame or price tag of the donor-investor.

CHANGESA business plan is a fluid document, a blueprint for your enterprise that must berevisited and modified periodically. Modifications usually result from changes thatoccur in the operating environment, industry forces, client needs or customer prefer-ences. For example, a new law regulating health and safety standards, an increase indirect competition, or an upturn in economic conditions could positively or nega-tively impact your business. When this happens, it is essential to make changes toyour business plan to reflect the current reality as well as projected future trends.

EXHIBIT 1E: BUSINESS PLANS RESPOND TO THE MARKET AND THEENVIRONMENT

Managem

en

t

Finance

Mar

ketin

g

Operations

OperatingEnvironment

IndustryForces

CustomerNeed & Wants

TargetPopulation

BUSINESS

PLAN



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Methodological Framework for Business Planning

Clearly, writing a business plan is a process which involves a significant amount oftime, effort, resources and advanced planning. The methodological framework is apreparation guide to address these issues. Practically, it is a projected timeline, a listof participants and key stakeholders of the various business segments, and a descrip-

tion of the methods that will be used for deriving information. More importantly, theframework facilitates a thorough and efficient business planning process, helping topromote consensus throughout the business planning process and create a sense ofownership upon its conclusion.

CONSENSUS AND OWNERSHIPConsensus throughout the business planning process and ownership of its conclu-sions by key stakeholders are essential at each stage.A business plan unilaterallydeveloped, or one prepared despite discord, is bound to fail during imple-mentation. Stakeholders of the social enterprise must be 100 percent on boardbefore the venture is launched. In addition, to imbue ownership, the social enter-prise stakeholders should be the ones who actually write the business plan, regard-

less of whether you hire a consultant to help facilitate the process.METHODSave the Children recommends using a participatory process throughout businessplanning. Most development and nonprofit organizations are well versed in partici-patory processes. Use your discretion, style, and experience to approach businessplanning with your partners and clients in a participatory way. Common methodsinclude workshops, discussion groups, meetings, retreats, and collaborative fact find-ing or research.

PARTICIPANTSIt is very important to include the appropriate participants when preparing yourbusiness plan. As previously explained, a business plan is the compilation of a subset

of plans for the different segments of your business. It contains plans for marketing,production, finance, operations, and human resources.Include key decision makers,staff, and external resource people implicated in each function to help develop the

related plan. For example, to develop your marketing plan, include the business andmarketing manager, the sales staff, and an independent market researcher or special-ist as you see fit. Whether or not you choose to use an external specialist dependson the level of in-house expertise. Also, include input from your target populationwhere opportune. If your social enterprise is rendering services directly to the targetpopulation, they will contribute greatly to your market research and product strate-gy. In the case of TARTINA Enterprise, microentrepreneurs manufactured the prod-ucts, so their input was invaluable when developing the production plan.

BUILDING YOURMETHODOLOGICAL FRAMEWORKA sample of the Methodological Framework for TARTINA Enterprises is provided inexhibit 1F. This example demonstrates how the framework steers the business plandevelopment by addressing key questions in each section of the plan. The frame-work also helps direct participation at each level of planning and delineates a time-line for completing the sections.



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Preparing a Business Plan Framework

Locate the blank Business Planning Framework in The Workbookor create yourown. An example for TARTINA Enterprise is provided in exhibit 1F.

As you work your way through each chapter of this manual and learn more, listwhich participants will be included in the planning exercises, the methodology

you will use, and the anticipated time period to complete each segment. It is not necessary to use every section or answer every question laid out in the

framework, as the particulars of your program may not warrant it. This frame-work is intended as a guide; make adjustments where necessary to fit your busi-ness planning needs.


TARTINA clients prepare

containers prior to packaging

Mamba peanut butter



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EXHIBIT1F:BUSINESSPLAN

FRAMEWORKFORTARTINAENTERPRISE

KeyQuestions

Method

PrincipalParticipants1

TimeRequired

Chapter

I.

Mission&

Objectives

1.

Whatisthevisionandmission?

2.

Whatsocialimpactandbusi-

nessob

jectiveswillbeaccom-

plished

?

3.

Whatisthedescriptionofthis

business?

1.

W

orkshop

2.

W

orkshop

3.

W

orkshop

1.

Boardmembers(TE2),Business

Advisor(SC),SeniorProject

Staff(ADE),

Executive

Management(ADE),

delegate

clients(TE).

2.-

3Same,

lessboardmembers.

1.

Oneday

2.-

3.Twodays

II.Unde

rstanding

TargetMarkets

forE

achProduct

1.

Whoiso

urtargetmarket(s)?

Actualcu

stomerandfinalcon-

sumeran

ddecision-makersfor

eachproduct?

2.

Howisthemarketsegmented?

1.A.D

iscussion/workshoponpre-

ferredtargetmarket:consumer,

p

urchaser,andactualcustomer

le

vels.

1.B.D

emographicreports,survey

customers,

focusgroups.(mar-

ketresearch).

2.A.D

iscussion/workshoponmar-

ketsegmentation.

2.B.R

eports,interviews,surveys

w

ithcoustomers.

(market

research)

1.

MarketingManager(TE),

BusinessManager(TE),sales

staff(TE),BusinessAdvisor

(SC),ProgramManager(ADE)

2.

Sameas1

1.A.

Oneday

1.B.

Twoweeksfor

study

2.A.

Halfday

2.B.

Oneweekfor

marketresearch

2 31ThereiscrossoverbetweenparticipantsidentifiedfromADEand

thosefromTARTINAEnterprise.

Som

estafffrom

SCorADEare

allocatedonatimepercentagetothe

enterpriseprogramand

maywearmorethanonehat.

Atthe

timeofdevelopingthis

businessplan,

TARTINAwasstilla"program"ofADEwithitsstaff

ontheADEpayroll.(SeeChapter7,H

umanResources,formore



17/30

EXHIBIT1F:BUSINESSPLANF

RAMEWORKFORTARTINAENTERPRISE

Key

Questions

Method

PrincipalParticipants

TimeRequired

Chapter

3.A.Debriefsalesstaff,marketing

m

anageronwhattheyknow

ab

outcustomers'buyinghabits

an

dmotives.

3.B.O

bservationmethod:Atpoint

ofpurchase,observebuying

patternsandhabits.(market

re

search)

3.C.Su

rveycurrentandpotential

re

tailerswithquestionnaire.

3.D.Conductfocusgroupswith

co

nsumers.

(marketresearch)

3

.A.

Salesstaff(TE),

Marketing

Manager(TE),Business

Manager(TE)

3

.B.

Salesstaff(TE),

Marketing


Manager(TE)

3

.C.

Salesstaff(TE),

Marketing


Manager(TE)

3

.D.

Salesstaff(TE),

Marketing


Manager(TE)

3

.E.

Sameas1&2+Business

Advisor(SC)

4

.

Sameas3.

E.

1

.

ProgramManager(ADE),

ProductionManager(TE),

BusinessManager(TE),produc

-

tionstaff,(TE)marketingstaff

(TE),

BusinessAdvisor(SC),

clients(TE)

3.A.

Halfday

3B.

Halfday:orient

salesstaff;one

weekstudy

3.C.

Oneweekto

conductsurvey:

combinewith

markettestsur-

vey

3.D.

Twoweeksto

organizeand

conductfocus

groups

3.E.

Oneday

4.

Halfaday

1.

Halfday

3.

Whatare

theprimarybuying

motives/h

abitsofthetargetmar-

ketforea

chproduct?

4.

Whatare

thefuturetrendsand

sizeofthetargetmarket?

III.Institutional,

Envir

onmental

andI

ndustry

Assessments

1.

Whatare

TEsstrengthsand

weaknesses?

3.E.Sy

nthesizeinformation/discus-

siononstrategicimplications.

4.

W

orkshop.

1.

BusinessAssessmentworkshop

3 Copyright 2000 Sutia Kim Alter. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License (http://creativecommons.org/licenses/by-sa/3.0/)


18/30



Key

Questions

Method


TimeRequired

Chapter

2.

En

vironmentalAssessment

workshop

3.

SW

OTAnalysisworkshop

4.A.In

dustryAnalysisworkshop

4.B.Statisticalinformationonindus-

try,surveys,questionnaires.

(m

arketresearch)

2

-4.

Sameas1

2.

Halfday

3.

Halfday

4.A.

Oneday

workshop

4.B.

Twoweeks

Research

2.

Whatare

theopportunitiesand

threatsin

theexternalenviron-

mentthatTEfaces?

3.

Whatare

thestrategicimplica-

tionsforT

EsStrengthsand

Opportun

ities?AndThreatsand

Weaknesses?HowcanS/Obe

leveraged

andW/Tmitigated?

4.

Istheindustryhospitableorhos-

tileforTE

sbusiness?What

aspectsoftheindustrywill

impactbu

sinessandprofit

potential?

IV.IndustryAnalysis

1.

Howsusc

eptibleisTARTINA's

businesstoseasonalfluctua-

tions?For

production?Forsales?

2.

Howsensitivetoeconomic

cyclesisT

ARTINA?

1.A.D

iscussionswithsalesstaff,

re

tailers,

farmers,andexternal

re

sourcepeople.

1.B.Pr

intedinformationandagri-

cu

lturalreports,surveys/inter-

viewswithretailers,

farmers

(m

arketresearch)

2.

Discussionswitheconomist,

ba

nkers,

industryspecialists.

Pr

intedeconomicinformation

&

reports.(marketresearch)

1

.A.

BusinessAdvisor(SC),sales

staff(TE),MarketingManager

(TE),BusinessManager(TE),

externalmarketresourcepeo-

pleandproducers.

1

.B.

Sameas1A.

2

.




FinancialDirector(SC),

Accountant(TE),externalmar-

ketresourcepeople.

1.A.

Oneweekto

holddiscus-

sionswithvari-

ousplayers

1.B.

Twoweeksto

collectinforma-

tion;domarket

research

2.-

5Threeweeksto

collectinforma-

tion;domarket

research

4Copyright 2000 Sutia Kim Alter. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License (http://creativecommons.org/licenses/by-sa/3.0/)


19/30

EXHIBIT1FBUSINESSPLANFRAMEWORKFORTARTINAENTERPRISE

Key

Questions

Method


TimeRequired

Chapter

3.

Howwillthelegalandregulato-

ryenviron

mentaffectTARTINA's

operations?

4.

HowsensitiveisTARTINA

Enterprise

tochangingtechnolo-

gy?

5.

Whatare

thefinancialcharacter-

isticsofth

efoodprocessing

industry?

6.

WhatisTARTINA"sStrategywith

respectto

theseindustryfactors?

3.

Discussionsandinterviews

withgovernmentagencies,

lawyers,

businesspeople,

industryregulators.

Printed

ec

onomicinformation&

reports.(marketresearch)

4.

Discussionswithproduction

staff,MIS,managementand

ad

ministration,

logistics,sales,

retailers,

industryanalysts.

5.

Discussionswithsales&mar-

ke

tingstaff,retailers,

industry

an

alysts.

6.

W

orkshoptosynthesizefind-

ings.

Plotstrategy.

3

.

BusinessAdvisor(SC,

TE),

BusinessManager(TE),exter-

nalmarketresourcepeople

(lawyer,industryconsultant).

4

.




FinancialDirector(SC),MIS

Manager,ProductionManager

(TE),externalmarketresource

(industryconsultant).

5

.






Accountant(TE),externalmar-

ketresource(industryconsult-

ant).

6

.

Allaboveexceptexternal

resourcepeople.

6.

OneDay

V.Competition

Analy

sis

1.

Howarethemaincompetitors

andtheiroverallstrengthsand

weaknesses?Andperproduct?

1.A.D


retailers,marketresourcepeo-

ple.

1.B.Pr

intedinformation/reports.

Interviewswithcompetitors,

su

ppliers,andcustomers.

(mar-

ke

tresearch)

1

.


staff(TE),

MarketingManager

(TE),

BusinessManager(TE),

externalmarketresourcepeo-

ple.

(marketresearch)

1.A.

Oneweekto

holddiscus-

sionswithvari-

ousplayers;do

research.

1.B.

Twoweeks

Market



20/30

2-3.

Twoweeksto

collectand

analyzecom-

petitiveinfor-

mation.

4.

Oneday

1.A.

Halfday

preparation

1.B.Oneday

1.C.

Onedayto

develop/

translatesurvey.

Halfdayenu-

meratortrain-

ingonmarket

survey

Tendays-

Markettest/

collectionof

Marketdata

Oneday-

Analysisof

k

EXHIBIT1F:BUSINESSPLANFRAMEWORKFORTARTINAENTERPRISE

Key

Questions

Method


TimeRequired

Chapter

2.

Howmuchmarketsharedoes

thecomp

etitionhaverelativeto

TEs?

3.

Whatwillthecompetitionlook

likeinthefuture?

4.

WhatisT

Esstrategywith

respecttothecompetitors?

V.

Prod

uctTest

1.

What4-5

products(maximum)

willoffer

thegreatestfeasibility

ofachievingtheenterprisepro-

ject'sobjectives?

2.-

3.D


retailers,marketresourcepeo-

ple.

Printedinformation/re-

portsifavailable.

(market

research)

4.

W

orkshoptosynthesizefind-

in

gs.

Plotstrategy.

1.A.Systematicevaluationofprod-

uctsusingmarket-drivencrite-

riaandsalesperformancefig-

uresusingaworkshopforum.

1.B.Feasibilitytest:Deskreviewof

financialfeasibilityinworkshop

fo

rum.

1.C.M

arkettest:Sampleofcurrent

andpotentialtargetmarketsfor

reducedproductlinelistusing

surveymethod.

2-3.BusinessAdvisor(SC),sales


(TE),


externalmarketresource

people.

4.

Sameas2.

1.A.

BusinessAdvisor(SC),Project

Advisor(SC),BusinessManage

r

(TE),salesstaff(TE),external

resourcepersonwithrelevant

marketoverview

1.B.


Bus-

inessManager(TE),

Accountan

t

(TE),


BusinessAdvisor(SC)

1.C.



BusinessManager(TE),sales

andproductionagents(TE),

ProgramManager(ADE)

PLEASENOTE:

Information

onproduct

testinghasnot

beenincluded

inthismanual.



21/30

1.D

Halfday

discussion

Twoweeksto

locateresource

person

1.E.

Halfday

workshop

1.

Oneday

2-3.

Halfday

4.A.

Oneday


Key

Questions

Method


TimeRequired

Chapter

VI.

MarketingPlan

1.

Whatare

ourmarketingobjec-

tivesfortheTEproductline?

Salestargets?

Part1.P

roductStrategy

2.

Whatarethefeaturesandbene-

fitsofTAR

TINAsproducts?

3.

Whatstageoftheproductlife

cycleiseachproductin?

4.

Whatisthedesiredpositionof

eachprod

uctrelativetothe

competitionforthemostimpor-

tantpurchasecriteria?

1.D.D

iscussionontechnicalfeasi-

bilityofproductswithfood-

processingresourceperson.

1.E.Forthoseproductspassingthe

firstthreestepsoffeasibility

te

st,evaluateonsocialfeasibili-

ty

termsmanagementteam

discussion.

1.

Disc

ussion/workshop

2.

Disc

ussion/workshop

3.

Disc

ussion/workshop

4.A.D

iscussionbasedonprimary

in

formationcollectedtodate.

1.D.

ProgramManger(ADE),


BusinessManager(TE),produc-

tionstaff(TE)resourceperson,

BusinessAdvisor(SC),repre-

sentativeclients

1.E

SeniorProjectManagement

(SC/ADE/TE),BusinessAdvisor

(SC)

1.



Mar-

ketingManager(TE),

Business

Advisor(SC),salesstaff(TE)

2&3.

Salesstaff(TE),

Marketing

Manager(TE),

Business

Manager(TE),

BusinessAdviso

r

(SC)

4.A.&

B.ProjectAdvisor(SC),sales

staff(TE),

Marketing

Manager(TE),

Business

Advisor(SC),Production

Manager(TE),

Production

Agents(TE)



22/30

4.B.

Twomonths

(ongoing)

Implementing

changesand

testingimpact

ofchangeson

marketing

objectives

Dependson

magnitudeof



Key

Questions

Method


TimeRequired

Chapter

5.

Whatisth

eplanfortheproduct

intermsofphysicalcharacteris-

ticsandse

rvicingtohelpachieve

marketing

objectives?

6.

Whatarethecostimplications

forproduc

tchanges?

7.

Whatisth

estrategyforeachTE

product?

8.

Whatisth

estrategyfortheentire

productline?

4.B.Productchangesshouldfirstbe

te

stedonsampletargetgroup

priortofull-scalecommercial-

ization.

Testingcanbedone

th

roughlimitedregularsales

ap

proach(limitedquantities)

an

dfocusgroupmarket

re

search.

5.-6.

Discussion/workshop

7.

Wo

rkshop

8.

Discussion/workshop

5

.-6.

Sameas4.A.

&B.

7

.

Salesstaff(TE),

Marketing

Manager(TE),BusinessManager

(TE),



ProductionAgents(TE)

8

.

Sameas7,

lessproduction

agents

changes

5.-

6.Oneday

7.

Twodays

8.

Oneday

Part2.

DistributionStrategy

9.

Whereshouldwesell?Whatare

theprioritymarkets?

10.W

hatarethebestmethodsand

distributionchannelstoreach

prioritytargetmarkets?

11.W

hatisth

edistributionplan?

Howwillthishelpachievemar-

k e t i n g o b j e c t i v e s ?

9.-

11.

Workshopanddeskreview

ofhistoricalsalesperform-

ancetohelpevaluatemost

lucrativesalesopportuni-

ties;marketstudyontarget

markets,costadvantagesof

distributionmarketsand

methods.

9

.-11.



ProgramManagement(SC,

ADE),salesstaff(TE),


logisticmanager/opera-

tions.

9.-

11.Twodays



23/30

12-14.Twodays

15.

Halfday

16.A.

Oneday

16B.One-monthtest

fornewpromo-

tionalstrategy

17.

Oneday


Key

Questions

Method


TimeRequired

Chapter

Part3.P

ricingStrategy

12.W

hatisth

ebreak-evenpointfor

unitsand

revenue?

13.Fortheplanningperiod,atwhat

levelshou

ldthebasicpricebe

setforeachproduct?

14.Fortheplanningperiod,what

willthestrategybeforelements

beyondth

ebasicprice?

Part4.

PromotionStrategy

15.W

hatare

logoand

promotionalmessage?

16.W

hattypesofpromotionalvehi-

clesandlow-costoptionsshould

beusedtomeetthemarketing

objectives

?

17.Howdow

ewanttopackageTE

products?

12.-14

.Workshop

15.W

orkshop/designerpresents

prototypes

16.A.

Workshop

16.B.

Markettestpromotion

17.W

orkshop

12.-

14.

Salesstaff(TE),Marketing

Manager(TE),

Business

Manager(TE),

Business

Advisor(SC),Program

Manager(SC),Accountant

(ADE),ProductionManager

(TE)

15.A.

MarketingManager(TE),Sales

Staff(TE),BusinessManager

(TE),graphicartist(external),

BusinessAdvisor(SC),Program

Manager(ADS)

16.A.

&B.

Salesstaff(ADE),

Marketing

Manager(TE),

Business

Manager(TE),

BusinessAdviso

r

(SC),Accountant(ADE)

17.

Sameas15+Purchasing



24/30

18.

Oneday

19.

Twodays

orientationon

promotionand

development

ofpromotional

strategy.

20.

Threeweeksto

prepare

promotional

materials.

21.

Twodays


KeyQuestions

Method


TimeRequired

Chapter

18.How

manystaffandwhatkind

willw

eneedtomarketTEprod-

ucts?

19.W

hatisthepromotionalstrate-

gyto

achievemarketingobjec-

tives?

20.

Whatistheimplementation

plan

forpromotionalstrategyin

Year

1?

21.W

hatisthesalesstructure?What

arethecostsassociatedwithsell-

ing?Salesstrategiesandplanfor

Year

1?

18.

Workshop/discussion

19.Workshop/discussion

20.

Implementation(i.e.,

develop-

mentofpromotionalmaterials)

willbedoneoutsideofwork-

shop.

21.

Workshop/discussion

18.


BusinessManager(TE);

BusinessAdvisor(SC)

19.

BusinessAdvisor(SC),salesstaff

(TE),MarketingManager(TE),

Promotionalresourcepeo

ple

(external)

20.

ManagedbyMarketMan

ager

(TE);AllMarketing&Sale

s

Staff,BusinessAdvisor(SC

)

21.

Sameas19+Accountant

(ADE),

ProductionManager(TE)

(tohelpsetsalestargetso

nly)

VII.P

roductionPlan

Part1

:Diagnostic

1.

Whatistheproductionprocess?

Who

isresponsibleforopera-

tions

stagesandproduction

steps

?

2.

WhatisTARTINA'slevelofpro-

ductivity?

3.

Whatareourconstraintstopro-

duction?

4.

Atwhatlevelofcapacityarewe

operating?

1-4.

Workshopatproductionsite

1-4.


ProductionManager(TE),pro-

ductionstaff(TE),

Invento

ry

Manager(TE),clients,

Business

Advisor(SC),ProductionAgents

(TE)

5.


5 6

1.-

4.Twodays



25/30

5.

Oneday

6.

Twodays;facil-

itatedbyexter-

naltechnical

assistance

7.

Onedayon

Quality

Control,one

monthtraining

ofproduction

staffandMEs

followingB-

Plan



Key

Questions

Method


TimeRequired

Chapter

Part2:

Operation

s/Production

Plan

5.

WhatareTARTINA'sproduction

objectives?Forqualitycontrol,

productim

provements?What

aretheproductiontargets?

6.

Howcanweimproveproduc-

tionproce

ss?Improvecapacity

utilization

andproductivity?

7.

Howcanefficiencyandquality

controlof

productionprocessbe

improved?

5.

W

orkshop

6.

Planningsessionswithproduc-

tio

nstaffandmicroentrepre-

ne

urs

7.

W

orkshop/planningsession

facilitatedbyexternaltechnical

assistance.

Productionmanager(TE),

MarketingManager,production

staff(TE),

BusinessAdvisor

(SC),ProgramManager(ADE),

FinanceDirector(SC)

6

.


Productionmanager(TE),pro-

ductionstaff(TE),

Inventory

Manager(TE),BusinessAdvisor

(SC),clients:TA(external)

7

.



ProductionTA(external),

InventoryManager(TE),pro-

ductionstaff(TE),clients.

8.

Howcanwerespondbetterto

customerwantswithourprod-

ucts?Will

thishelpustomeet

businesso

bjectives?Whatare

thecostsa

ssociatedwithR&D?

8.

W


8

.




productionstaff(TE),

Business

Advisor(SC),R&D(TE)

8.

Twodays



26/30

EXHIBIT1F:BUSINESSPLANFRAMEWORKFORTARTINAEN

TERPRISE

Key

Questions

Method


TimeRequired

Chapter

9.

Howca

ninformationsharing

beimpr

ovedbetweenproduc-

tionstepsandthroughoutthe

business?Howcanwetrack

thisinfo

rmation?DevelopMIS?

9.

W


610.

Whataretheshortcomingsof

theexistingsystem?What

changes

shouldbemade?What

typeofmanagementinformation

system(MIS)shouldbeused?

11.

Whatin

ternalcontrolsare

alreadyinplacewithintheenter-

prise?W

herearethegaps?What

changes

needtobemadeinorder

tostrengtheninternalcontrols?

12.

Whatis

thecustomerfeed

back/pe

rceptionregarding

TARTINA'scustomerservice?

Whatis

thecurrentorderfulfill-

mentpr

ocess?Howcancus-

tomerservicebeimprovedto

betterm

eetcustomersneeds

andexp

ectations?

13.

Whatw

illtheproduction

schedulebe?Whatistheplan

tomana

gepurchaseofraw

materialsupplies?

10.A.S

ystemsauditwithexternal

M

ISprofessional.

10.B.W

orkshop/Discussrecommen-

d

ations

11.A.S

ystemsauditwithexternal

M

ISprofessional

11.B.W

orkshop

12.A.

Marketstudy

12.B.

Workshop

13.W

orkshopandtrainingofpro-

d

uctionstaffandclients

9

.



ProductionTA(external),

InventoryManager(TE),pro-

ductionstaff(TE),

MISSpecialist

(external)

1

0.A.

&

1

0.B.BusinessAdvisor(SC),allgener-

alandlinemanagers(TE),

MIS

specialist(TE),financialstaff

(TE),contractedMIS

professional

1

1.

BusinessAdvisor(SC),Business

Manager,OperationsManager

(TE),

MISspecialist(TE),finan-

cialstaff(TE),contractedMIS

professional

1

2.A.

&

1

2.B.BusinessAdvisor(SC),Business

Managerandrelevantman-

agers(marketing,customer

service,

inventory,operations,

finance,etc.)

(TE),

MISspecial-

ist(TE),salesstaff(TE),externa

l

marketresearchperson

1

3.

ProductionManager(TE),pro-

ductionstaff(TE),clients,


Business

Advisor(SC)

9.

Three-day

workshop,

facil-

itatedbyexter-

naltechnical

assistance

10.A.T

hreedays

audit/recom-

mendations;

10.B.Onedaytodis-

cussanddecide

onoptions.

11.A.Internalcon-

trolsaudit

(includedin

above)

11.B.Onedayto

incorporate

newcontrols

12.A.Oneweekfor

marketresearch

12.B.One-daywork-

shoptodevel-

opcustomer

serviceplan

13.

Twodaysto

developpro-

ductionsched-

ulewithpro-

ductionstaff



27/30



Key

Questions

Method


Chapter

14.Howcan

theinventorybebet-

termana

ged?Whattypeof

controls

canweputinplaceto

reduces

poilage,

loss,ortheft?

15.Whatarethecostsofthepro-

ductionplanandthecashflow

requirem

ents?Whatarethe

unitcost

sforeachproduct?

16.

Productiontargetsandtheir

impacto

nthebottom-line?

17.

Whatsocialimpactindicators

willTARTINAtrack?Direct

impact?Indirectimpact?What

systemswillbeusedtomonitor

andasse

ssimpactfortheenter-

prise?

IX.Huma

nResources

Plan

1.

Whatare

therolesofenterprise

actors?Whatistherelationship

betweenthem?Whoisserving

whom?

2.

Whatkind

sofhumanresources

arerequiredtosupportthemar-

keting,production,enterprise

management?Onwhatsalary

scale?

3.

Whatisth

estaffrecruitment

planandtimelinetohirenew

l

?

14.

W

orkshopandtrainingofpro-

ductionstaffandclients

15.

Financialplanningworkshop

16.

Financialproductionplanning

workshop

17.A.Sy

stemsauditwithexternalMIS

professional

17.B.W

orkshopwithstatistician

im

pactspecialist.Discussrec-

om

mendations;buildintoplan

1-5.W

orkshop,staffinventory

1

4.

ProductionManager(TE),In-

ventoryManager(TE),produc-

tionstaff(TE),clients,

Business

Advisor,MarketingManager

1

5.



FinancialStaff(SC,

ADE,TE),


BusinessAdvisor(SC)

1

6.

Sameasabove

1

7.A.

&

1

7.B.BusinessAdvisor(SC),Business

Manager(TE),

Program

Manager(ADE),production

agents(TE)MISspecialist(TE),

contractedimpactspecialist

1

-5.

SeniorProgramManagement

(SC,

ADE,TE)

TimeRequired

14.

Three-day

training

One-day

planning

15.

Twodayson

financeplanto

supportpro-

ductionplan

16.

Onedaysetting

targets

17.A.T

hreedays

audit(sameas

forMIS);

17.B.Two-daywork-

shopforplan-

ning.

MIS

development

ongoing

1-5.

Oneday

6 Copyright 2000 Sutia Kim Alter. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License (http://creativecommons.org/licenses/by-sa/3.0/)


28/30



Key

Questions

Method


Chapter

TimeRequired

74.

Whatorganizationalstructureis

mostappropriate?

5.

Whatare

theoutputs,objectives

andrespo

nsibilitiesofeachposi-

tion?Job

descriptions?

6.

Whatistheboardscurrent

developm

entstage?Whoison

theboard

?Whataretheirskills,

professions,andareasofexpert-

ise?Who

istheboardchair?

7.

Whatkindofincentiveplancan

weemplo

ytomotivateand

retainstaff?

8.

Whattypeofdevelopmentplans

dowene

edforstaffandclients

tobuildc

apacity?Whatarethe

specifictr

ainingandTAneedsfor

theenterprisestaff?Theclients?

Whowill

providetraining;what

aretheassociatedcosts?Will

externalr

esourcepeoplebecon-

tractedorwillTA/trainingbe

donein-h

ouse?

9.

Whenandwherewillplanbe

implemen

ted;bywhomand

withwhatmoney(HRbudget)?

6.

Workshop/discussion

7.

Discussion/financialprojections

8.

Needsassessment,internal

skillsinventory,planningses-

sio

ntoscheduletrainingand

technicalassistance

9.

Planningsession,

budget

projections

6

.

Boardmembers,

Business

Advisor(SC)andCountry

Representative(SC),Executive

DirectorandSenior

Management

(AD,

TE).

7

.


Busi-

nessManager(TE)withassis-

tancefromprojectfinancialstaff

8

A.




BusinessAdvisor(SC),Financia

l

Director(SC),Program

Manager(ADE)

8

B.

Includeproductionagentsin

discussiononclientdevelop-

mentneeds

9

.


ProgramManager(ADE)with

assistancefromfinancialstaff

6.

Halfday

7.

Halfdaytopre-

pareimplemen-

tationplan

8A.

Fivedaysfor

needsassess-

ment

8B.

One-twodays

todevelop

technicalassis-

tanceandtrain-

ingplans.

9.

Onedayto

prepareimple-

mentationplan



29/30

X.Financ

ialPlan

1.

Whatarethefinancialobjectives

andtargets?

2.

Whatsocialcostswillbecovered

bytheenterprise?Howarethey

quantified?Usingwhatmethod-

ology?

3.

Whatarethefinancialrequire-

mentstosupportaboveplans

(budgetplanning)

4.

HowisTARTINAperforming

financially

atpresent?

Developmentandanalysisof

financialstatement(balance

sheet,profitandloss,cashflow

statementandcashflowprojec-

tion).Wha

tisthedoublebottom

line?Whatarethestrategic

implication

s?

1.

Wo

rkshop

2.

Wo

rkshop/discussion

3.

Wo

rkshop

4.

Pre

sentationoffinancialstate-

me

ntsbyFinancialDirector

(SC

)andBusinessManager(TE)

followedbydiscussion

1.

SeniorManagement,Financial

Director(SC),Business

Manager(TE),Program

Manager(ADE),

financialstaff

(ADE/TE),

BusinessAdvisor(SC

)

2.

Businessadvisor(SC),Financia

l

Director(SC),ProgramManager

(SC),SeniorManagement:pro

-

duction,

finance,program(TE)

andproductionagents.

3.

Sameas#1

4.

Threedays

1.

One-day

workshop

Anumberofcal-

culationsshould

havebeenmade

duringprepara-

tionofabove

plans

2.

Oneday

3.

One-daywork-

shop

4.

Oneday



Key

Questions

Method


Chapter

TimeRequired



30/30

T1F:BUSINESSPLANF


Key

Questions

Method


apter

TimeRequired

85.

WhatisTA

RTINA'scurrent

financingmix?Whatisthepro-

jectedfina

ncingmixoverthe

next2yea

rs?Fromwherewill

additional

fundsbesourced?

Whatisth

eresourceacquisition

plan?

5.A.Workshop/discussion

B.

Do

norresearch

C.

Planningworkshop

5.

A.

Businessadvisor(SC),Financial

Director(SC),BusinessMana-

ger(TE),

FinanceManager(TE

),

BusinessAdvisor(SC)and

accountants

B.

BusinessAdvisor(SC),Busines

s

Manager(TE),

Program

Manager(TE),

Executive

Director(ADE)

C.

SameasAplusExecutive

Director(ADE)

5.A.

Onedayto

derivefinancial

calculations

B.

Fourweeksto

dodonor

research

C.

Onedayto

developplan

Documents

Business Plan Competition Template