The Business Plan

BU113: Foundations of Business Administration

Business PlanningMandatory Competency Level 1

Presents

Mandatory Competencies

Business Planning

Demonstrate knowledge and understanding of how business planning activities contribute to the achievement of your

corporate objectives

Principles of law Parliament, legislation, tort, common law etc

Short / long term strategies Market analysis Five year plans Business support services administration,

secretarial, HR, IT etc. Staffing levels recruitment / turnover Employment law Employment policy

Level - 1

Business Planning

WHERE YOU WANT

TO BE

WHERE YOU ARE

Business Planning

Why ?

What ?

How ?

Business Planning

Future

What

HowNOW

Why

NEW NOW

Why ?

Business Planning

Purpose Explain the concept of the proposed

business Analyse the market Present strategy Outline the projected development of the

business Define capital needs and procurement Project financial performance Present managements credentials

What ?

Business Planning

A document in which the entrepreneur summarises business strategy for the proposed new venture and how that strategy will be implemented.

A detailed description of the proposed business, including types of customers, competitors, and facilities needed for production

Includes 3 functions of business:

Management, Marketing, and Finance

Business Plan - definition

How ?

Business Planning

Business Planning Analysis Tools

SWOT Analysis

PEST Analysis

STRENGTH WEAKNESSOPPORTUNITYTHREATS

POLITICAL ECONOMICALSOCIALTECHNOLOGICAL

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Common factors for success1. Hard work, drive / motivation,

and dedication2. Market demand for product /

service3. Managerial competence4. Luck

Common factors for failure1. Managerial incompetence or

inexperience2. Negligence3. Weak control systems4. Insufficient capital

How do we get there ?

Strategic Planning:Strategic Planning is the managerial process of developing and maintaining a strategic fit between the organisation's objectives and resources and its changing market opportunities.

Know your enemy, know yourself, and your victory will not be threatened.

Know the terrain, know the weather, and your victory will be complete.

Where will we be in the future ?

Who might use the Business Plan?

Investors Owners of the company / Management Banks or other lenders (creditors) Potential suppliers

The Cover Sheet

Company name Address of the head office The Management Team Phone numbers Note:

Mark it Confidential

Business Plan - Format & Components

State your Companys mission statement

Set out the How and What of Where you want to be and by When through plans for different areas of businessMarketingDeliveryFinancialManagement

Provide supporting documents

Mission Statement A mission statement is a brief description

of a companys fundamental purpose. A mission statement answers the questions,

Why do we exist? What do we hope to achieve in the future? The mission statement articulates the companys moral /

ethical position, public image, the target market, products / services, the geographic domain and expectations of growth and profitability.

Mission - Examples It is the mission of X College to contribute through higher

education to the enhancement of the human person and to the advancement of human culture in the light of the faith.

The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. Eight core values include the following:

Excellent customer service Taking care of our people Giving back Doing the "right" thing Creating shareholder value Respect for all people Entrepreneurial spirit Building strong relationships

Business Plan - Management Type of organisation /

form of business ownership

Organisation chart Management team

Experience Skills Roles in the business Supporting documents:

Resumes

XYZ Company

Business Plan - Marketing Product / Service

Key characteristics, uniqueness Picture, design / model Supplier Amount of inventory to be ordered

Target market Users - demographics Benefits Economic / social / cultural characteristics Projected sales (revenue): calculated

Business Plan - Marketing Competition Who? Strengths Weaknesses

Business Plan - Marketing Price

Pricing strategy Pricing strategy vs. competition

Promotion Promotional strategy: developing demand for product

Place / distributionGetting the product from production to the

consumer

Business Plan - Finance Concerns of investors

Demand for productManagement characteristics and experience

Innovation Track record

Rate of return Amount of risk Financial projections Outlook for competitiveness of business Growth curve of business

Future plans

THANK YOU

Supporting documents List of Shareholders: Attach a table with the

information about your shareholders investment. name contact information number of shares invested percent ownership in the company based on

the number of shares owned Resumes of each manager Company logo PowerPoint slides in handout form