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This is an explanation of the final business plan,
A business should have a unique name, logo, and motto.
For formatting, use Times New Roman, font 12 and 1 line spacing for text.
A final business plan will vary from 25 to 50 pages depending on the businessactivity and creativity of the person.
You should do some research work to get some statistics that will show thatyour business plan is a realistic one.
Moreover, a good business plan is also a well-presented business plan.Differentiate title with subtitles
Tiles are like, executive summary, the business and the management teamwhich are in red
Subtitles are management risks, marketing risks, operating risks, which are bold
and underline.
It would be wiser to start every title on a fresh page.
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Cover Page
Display Index No., Programme of Studies, and Tutors Name
Put your business name, logo, and motto
Table of Contents
It would good that you have an introduction of Mauritius as a country doing
business, this will show that you have a knowledge of how business are set up
in Mauritius and what procedures to adopt, moreover, include some statistics
showing SME business in Mauritius,( revenue, size of market, number of
SMEs)
I. Executive Summary
A. The Opportunity Can be a problem to be solved or a need to be filled.
B. Brief Description of the Business
How the business proposes to solve the problem or fill the need
C. Source(s) of Competitive Advantage
Brief Description of the business model
D. The Target Market (One or more segments)
E. The Management TeamF. Brief Summary of the Financial Projections
The amount of capital needed and what the capital will be used for, (if the plan is
going to a potential investor/financer)
G. Description of Business Needs
H. Any exit Strategy for Investors (if the plan is going to investors)
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II. The Business
A. The Opportunity
Detailed description of the problem to be solved or need to be filled. From idea to
Business Opportunity.
Describe the opportunities that are available in Mauritius, that is, opportunities
for setting up an SME, we can also talk on how competitors product are different
from our product, and you can add 1 or 2 statistics to show that the market is
really an opportunity to do business. Also, explain why your idea is a business
opportunity, for someone who want to open a Lifestyle Physical Therapy and
Balance Centre, it will be an opportunity as there is no such clinic or centre in
Mauritius that facilitate rapid recovery of neurological dizziness and balance
disorders, as well as musculoskeletal disorders.
B. The Description of the Business
Description of how the proposed business plans to solve the problem or fill the need
- Explain also the business will consist of how many persons, how you will do
your business, how to market your business, what are the potential market outlets,
mention also how your production will satisfy the need in the market,
Company history or background
- Since it will be a new business, there will no background, but if you are
planning to take-over an old business, then you should describe the business details
Company Vision, Mission and objectives
- Do state your objective, that is, what you want to achieve through the production of
your good, for vision, mission and objectives, try to look at big companies, they have
a nice vision and mission statement, and a motto with a logo. Objectives can come in
the form of values that the company nurture.For example, a goal might be to have a
healthy, successful company that is a leader in customer service and that has a loyal
customer following. Objectives might be annual sales targets and some specific
measures of customer satisfaction.
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Business Philosophy: What is important to you in business?
C. Competitive Advantage
Description of the business model
- explain which type of business you will have, company, partnership or sole-
trader, you can also mention what will be your major source of income, you can also
state your distribution channel.
How the business will create a sustainable competitive advantage
- your competitive advantage can be in terms of experience, your labour, your
machinery or the innovative item that you are coming with, and how this will capture
the market. Moreover, you can mention that the business is more quality oriented
and customer oriented.
D. Current Status and Requirements
Description of where the business stands today
- This is what you have done till now, e.g. you have a building, you have apermit, you have some stocks, you have already done some surveys, its means what
you already possess and what you have acquired to start your business
Description of what the business needs to move forward
you have stated what you have done till now and but in this section
you need to state what need to be done, despite having a minimum
requirements to start up a business , you may have something that ispending e.g. loans approval, market surveys, results of surveys, purchase
of equipment or utilities( electricity, water and waste water)
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III. Management Team
A. Management Team
Management qualifications/experience
- state the qualifications and experience of the manager or owner(it is not for
employees) in the business, mention who will form part of the management team,
you can also mention on what basis you have recruited your employees, whether
they will be permanent workers or will be on a XX months or years of probation
Management ability/competences
- in this section you should mention about the qualities that you possess,
some have very good communication skills, some are the leader type, some are
good at coordinating the production process, some have marketing skills,
Technical expertise
- mention whether you want to recruit or you have already recruited
an expert, for e.g., a laboratory expert that will do some testing for your
product, vetinerary, graphic designer
B. Board of Directors
Number of directors
Composition of the board and responsibilities
normally a board of directors is formed when it is the case of a company,For the board, you can mention, that it will take decisions about how the
funds will be managed, how the assets will be managed, what strategic
decisions will be taken,
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C. Board of Advisers (if any)
Number of advisers
Composition of the advisory board
it is an optional factor, you can say that you will appoint someone, or its a relative
or a friend, you can have , financial advisor, marketing advisor, sales advisor, supply
and logistics management advisor, legal advisor, production advisor. But for those
doing a partnership business or sole-trader, it will be most suitable to have a board
of advisors, this will compensate for the board of companies, here just mention who
will form part and what will be the duties of the board, what type of decisions will be
taken, decisions can be in form of introducing new packages, seeking new loans,
where you need some advice as you dont have the necessary expertise in the field
D. Key Professional Service Providers
Law & Accountancy firms
Bankers
explain what your accountancy firms will do ,how you will deal with your
bankers, what services you will require from both the accountancy firm and
bankers,
For the law firms, it is most appropriate to have it for a company, as it is a
more complex structure than the sole trader is, but you can say, you have a
friend, a brother or a relative who is a lawyer, that will take be the law
advisor
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IV. Organisation Structure, Ownership and Intellectual Property
A. Organisational Structure
Organisational chart
- You need to draw an organisational chart it may take the form below (it is
just an example)
Now you should state what are relationships between employees, for e.g. if there is a
defect in production, the foreman will report to the production supervisor and the
production supervisor will report to the production manager. Then the production
manager will inform the foreman through the production supervisor what should be
done. If the production manager is not able to take a decision, he may consult his
managing director. This is a democratic style adopted in the company, where there is
two-way communication. You can also mention it. You can also mention what type of
leadership style you will adopt. You can also attach a job description for each
employee in your appendix
* A job description is a fully detailed report for a specific post in a business
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V. Industry Analysis
A. Industry description
Industry trends, size, attractiveness
- you should do a SWOT Analysis, Porters five forces model and include the
PEST factors, you should also include statistics on the market size, customer taste
and preferences, surveys results on customers reaction towards new innovativeproducts, market saturation, industry statistics about average revenue, average
profit, average capital to start a business in that industry. You can include statistics
for doing business in Mauritius and business facilitation in Mauritius and laws and
regulations that help to promote business activity. The status of the industry can be
for example, a monopoly, an oligopoly or an open market approach. Other industry
issues include the industry trends (e.g. influence of technology), industry
attractiveness (e.g. industry life cycle). Is it a growth industry? What changes do you
foresee in the industry, short term and long term? How will your company be poised
to take advantage of them?
Profit potential
- If you can include a profit potential, it will be good. To give a more precise
profit potential, you can use your market analysis results and some statistics as wellas your cash flow forecast and budgeted profit and loss account. In case of a loss,
this will help you to identify factors that help you to remedy to the situation.
B. Target Market
Description of target market (market segments)
- You should mention the specificities of your target market e.g. buyingbehaviour, disposable income, individuals or institutions. You should include
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statistics. You should also mention how your competitor acts in the market segments
you are targeting. Moreover, in a market segment, you may adopt a positioning and
targeting strategy to grasp the most out of the segment. A market can be segmented
in terms of age, gender, income, region, habits, taste and fashion.
C. Competitive position within target market
Competitor analysis
- It is mostly a survey that you need to do between your business and
competitors (max 3 best competitors), the results will show if you are the leader,
concurrent or the starter. Also, include your competitors market shares, average
revenues, average profit, average workers and average production. The use of the
competitor analysis is to assess the products/services, market share, pricing
strategies and other business policies. Your competitor analysis may include the
following questions that you need to get information:
What market segments do competitors position themselves?
Are competitors importing, manufacturing or just reselling?
What are competitors annual turnover?
Do competitors focus on price, on product or on customers?
Do competitors sell branded or generic products?
What are competitor sources of competitive advantage?
What are competitor strengths and weaknesses?
You should then compare the answers of your competitors with your business to
know if your business is better that competitors and in which aspect it is better.
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VI. Marketing Plan
A. Product Feasibility and Strategy
Concept testing
- You can include a feasibility study about your products, e.g. product
feasibility, market feasibility. You can even compare your business with other
business or compare it with industry benchmarks. You may also analyse
competitors strengths and weaknesses.
Product strategy
- You can give your plans concerning packaging, sizes, volumes,
presentation. New products inform people, make them aware, and inform them of
benefits of new products/services, as people may not be aware of their needs. You
can talk on your packaging, what details will be on the packaging, how the product
will be in the packaging.
Features and Benefits
List all of your major products or services.
For each product or service:
Describe the most important features. What is special about it?
Describe the benefits. That is, what will the product do for the customer?
B. Pricing Strategy
- You need to mention about pricing strategies, it is not the same with saying
that a pen will cost Rs 10, pricing strategies are marginal cost pricing, cost based
pricing, penetration pricing, price-skimming, psychological pricing, competitor based
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pricing or standard pricing. Does your pricing strategy fit with what was revealed in
your competitive analysis?
Compare your prices with those of the competition. Are they higher, lower, the
same? Why?
How important is price as a competitive factor? Do your intended customers really
make their purchase decisions mostly on price?
What will be your customer service and credit policies?
An example of psychological price is Rs 9.99, 16.99,
C. Channels of Distribution
- you should state your channel of distribution, you should include how may
intermediaries you have and why you have chosen those intermediaries, and you
can also mention about competitors channel of distribution and show that your
channel of distribution is better than your competitor. An example is shown below:
D. Marketing Communications Strategy
- Your plans for advertising, any press advert, brochures, direct marketing strategy,
TV, radio, explain how your advertising will be done to attract more customers. How
will you get the word out to customers?
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Advertising: What media, why, and how often? Why this mix and not some other?
Have you identified low-cost methods to get the most out of your promotional
budget?
Will you use methods other than paid advertising, such as trade shows, catalogues,
dealer incentives, word of mouth (how will you stimulate it?), and network of friends
or professionals?
What image do you want to project? How do you want customers to see you?
E. Customer Support (depend on type of business)
Customer support strategies
- How do you plan to develop a relationship with customers in view of
retaining them?
Customer support obligations
- Any contractual agreements with customers e.g. hire purchase. Deposit
agreements
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VII. Operations Plan
A. Method of Production or Service Delivery
- For a product, you should mention whether it will be a manual production or
mechanical production, Industrial manufacturing, semi manual, automatic, semi-
automatic and how many machines would be used.
- For a service, you should mention how you would render your service, how
you would make it available to customers
Explain your methods of:
Production techniques and costs
Quality control
Customer service
Inventory control
Product development
B. Availability of Qualified Labour Pool (may require separate HR Plan)
- For this part, if you plan to employ more than 10 people, then you prepare a
separate HR plan, otherwise, you should include how many employees you will
have, what are their qualifications, skills, competences? How the recruitment and
selection process will be done.
Location Plan, Layout Plan
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Layout plan, it is a detailed overview of the business place, it shows administration
office, toilets, rest room, production room, it can be done on paint or AutoCAD. An
example is shown below:
Location plan includes a satellite overview of the business as it will include roads,other buildings, and land of other persons. An example is shown below:
C. Quality Control
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- It will depend on the type of the business, but some might require qualitycontrol systems to be put in place, procedures, systems (e.g. TQM), ISO standards(Certification and Accreditation issues).
VIII. Financial Plan
A. Capital Requirements for the Next 3 to 5 Years
Sources and uses of funds, where you will get the money and what will be
amount of the money.
B. Overview of Financial Projections ( Give a brief overview of your P&L, balance
sheet and cash flow)
C. Profit & Loss(This is just an example, you may modify it or change the format)
Profit and Loss Projection (3 Years)Enter your Company Name here
2006 2007 2008
Sales $ - $ -$-
Cost/ Goods Sold (COGS) - - -
Gross Profit $ - $ -$-
Operating Expenses
Salary (Office & Overhead) $ - $ -$-
Payroll (taxes etc.) - - -
Outside Services - - -
Supplies (off and operation) - - -
Repairs/ Maintenance - - -
Advertising - - -
Car, Delivery and Travel - - -
Accounting and Legal - - -
Rent - - -
Telephone - - -
Utilities - - -Insurance - - -
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Taxes (real estate etc.) - - -
Interest - - -
Depreciation - - -
Other expense (specify) - - -
Other expense (specify) - - -
Total Expenses $ - $ -$-
Net Profit Before Tax - - -
Income Taxes - - -
Net Profit After Tax - - -
Owner Draw/ Dividends - - -
Adj. to Retained Earnings $ - $ -$-
D. Cash Flow Projections (This is just an example, you may modify it or change the
format)
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Name
Cashflow Statement (Direct Method)
For the year ended .
Notes $ $
Cashflow from Operating ActivitiesCash received fromcustomers XXX
Cash paid to suppliers (XXX)
Other operating expenses (XXX)
Cash generated fromoperations XXX/(XXX)
LessTaxation paid (XXX)
Less Interest paid (XXX)
Net cashflow from operating activities XXX/(XXX)
Cashflow from Investing Activities
LessPurchase of non current assets (XXX)
AddSales of non current assets (XXX)
Add Interest received XXX
AddDividends received XXX
Net Cashflow from Investing Activities XXX/(XXX)
Cashflow from Financing Activities
Proceeds fromissues of shares XXX
Proceeds fromlong termborrowings XXX
Payment of finance lease liabilities (XXX)
Redemption of shares (XXX)
Repayment of loans (XXX)
Dividend paid (XXX)
Net Cashflow fromFinancing Activities XXX/(XXX)
Net Cashflow XXX/(XXX)
Cash and Cash Equivalent at the beginning XXX/(XXX)
Cash and Cash Equivalent at the end XXX/(XXX)
E. Balance Sheets (This is just an example, you may modify it or change the format)
Balance Sheet (Projected)Enter your Company Name here
Beginning Projected
as of mm/dd/yyyyas of
mm/dd/yyyy
Assets
Current Assets
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Cash in bank $ - $ -
Accounts receivable - -
Inventory - -
Prepaid expenses - -
Other current assets - -
Total Current Assets $ - $ -
Fixed Assets
Machinery & equipment $ - $ -
Furniture & fixtures - -
Leasehold improvements - -
Land & buildings - -
Other fixed assets - -(LESS accumulateddepreciation on all fixedassets) - -Total Fixed Assets (netof depreciation) $ - $ -
Other Assets
Intangibles $ - $ -
Deposits - -
Goodwill - -
Other - -
Total Other Assets $ - $ -
TOTAL Assets $ - $ -
Liabilities and Equity
Current Liabilities
Accounts payable $ - $ -
Interest payable - -
Taxes payable - -Notes, short-term (duewithin 12 months) - -Current part, long-termdebt - -
Other current liabilities - -
Total Current Liabilities $ - $ -
Long-term Debt
Bank loans payable $ - $ -Notes payable tostockholders - -
LESS: Short-term portion - -
Other long term debt - -
Total Long-term Debt $ - $ -
Total Liabilities $ - $ -
Owners' EquityInvested capital $ - $ -
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Retained earnings -beginning - -Retained earnings -current - -
Total Owners' Equity $ - $ -
Total Liabilities & Equity $ - $ -
F. Payback and Exit Strategy (if the business plan is sent to potential investors)
IX. Critical Risk Factors
A. Management Risks
- It is linked to the performance of managers, management team, board of
advisors, Leaks from staff acting unethically
B. Marketing Risks
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- The effects of marketing strategies on the business and also the actions of
competitors through their marketing strategies.
C. Operating Risks
- It will arise based on the production strategies adopted, the existence of
defective goods/services, health and safety incidents. Faulty equipment and
environmental risks
D. Financial Risks
- It is based on the financial projections of the business, a loss will surely lead
to some risk, as well as a big amount of loan, and there might be embezzlement.
E. Intellectual Property Infringement
- Violation of rules, trademark regulations, copyrights, or trying to copy part of
a copyrighted product
X. Appendix
A. Supporting Documents
C.Vs of founders and key employees
Diagrams of product prototypes
Other documents as appropriate
Design of plant and equipment
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Copies of contractual agreements with partners, employees, suppliers,
customers etc.
Brochures and advertising materials
Industry studies
Blueprints and plans
Maps and photos of location
Magazine or other articles
Detailed lists of equipment owned or to be purchased
Copies of leases and contracts
Letters of support from future customers
Any other materials needed to support the assumptions in this plan
Market research studies
List of assets available as collateral for a loan