Preparation of Business Plan
You are required to write a business plan either for a business idea you have. This can be a real or an imaginary business or a plan for an existing small business. Whilst you do not have to follow any precise format, a specimen format is provided in the textbook. The interactive chapter exercises on the textbook website allow you to build your plan step-by-step and place it in this format.Guidance - Business Plan
Excutive summary - Briefly summarize the plan and highlight the key points and it may minimum be an outline of:
1. the business; 2 the team;3the proposal; 4why it will succeed;5 what the rewards will be; 6 any major risks and how you can minimize them
2.1 Business details - 1. Description of your products /service, 2. Your mission and vision statements, 3.You aims and objectives
3. Industry & market analysis.
3.1 SLEPT analysis
3.2 Porters five forces
This section provides background information on your industry sector and market segments within it . should include ;
Industry size ,growth ,structure( macro and micro/ local level )
Industry & market trends (macro & micro. Local level)
Market segments and reasons for target markets selection
Buyer behavior across segments
Competitor analysis ( strength and weaknesses)
Customers & Value proposition
This section outlines your target market segments and the value propositions for your product/service. Highlight your different advantages over competitors. set your sales targets
Marketing strategy -
The details about how you propose to achieve that sale target. it should include.
1.Price , Promotions,distribution etc. 2.Launch strategy 3.Sales tactics 4.Brand development 5.Competitive reaction 6.Product & market
development 7.Growth potential
Operation plan - This section outlines how your business will be run and how your product/service will be produced. It will include 1.Key operating activated ( manufacturing process ,business model ets),
2.Partnership , 3.Business control ,4.Scalability 5.Supply
Mangnient team & company Structure
1.Key people , their functions & background 2.Business organization or structure 3.Director, advisor and other key partner 4.Skills gaps and plans for filling them
Resources - This section describes the firms facilities equipment's & staff requirements. it should include; premises , facilities , machinery, equipment and staff
financing - This section highlights the finance you need to launch your business. This section should include; 1.founders contribution,
2.1oan and or equity finance requirements, 3.gearing/ leverage, 4.time scale and exit routes for equity investors.
Financial projection - This section should include the financial projections for three years with monthly cash flow forecast for first year. Provide one page financial summary should include; 1. Income projections 2. Cash flow projections 3. Balance sheet projections 4 key ratios.
Risks & strategic options - This section should identify the key risks you face. This section should include ; Lidentified risk 2.Risk monitoring and mitigation 3.Critical success factors 4.Strategic options
References - Harvard style
Specimen plans are readily available on the internet. However be warned, do not copy the contents of on-line plans.
Marks for this assessment will be awarded based on the criteria below.
- Clarity, consistency and originality of value proposition(s)
- Clear identification of target market segment(s)
- Comprehensiveness of market and competitor analysis
- Consistency/originality of core marketing & entry and/or growth strategies
- Comprehensiveness and accuracy of financial projections
- Comprehensive identification of resources required and financing
- Identification of material risks and their mitigation
- Realism and practicality of plan
- Overall presentation, including clarity of English
Marks will be awarded for the thoroughness of the plan - not for the profit-making potential of the business idea. A good plan that proves the idea to be unviable can receive full marks. A profit projection, breakeven calculation, monthly cash flow forecast and balance sheet are required for only the first year and should be included in the appe3ndix. You must also provide details of the assumptions on which these are based.
References: Academic citations (e.g. to academic models) are not expected in a business plan, but if you do use them ensure that they are properly referenced. However, if you cite sources for information used (e.g. market size) you must ensure that they are properly referenced (normally a web reference).