Business Plan Template - MTSP[1]

8/8/2019 Business Plan Template - MTSP[1]

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SMEDA - Business Plan Template for MTSP

1

BUSINESS PLAN

_____________________________________

(COMPANY NAME)

for

TRANSITIONAL SUPPORT TO SMALL COMPANIES

Business name ____________________________________________

Contact Person ____________________________________________

Address ____________________________________________

____________________________________________

____________________________________________

Telephone ____________________________________________

Cellular phone ____________________________________________

Fax ____________________________________________

E-mail address ____________________________________________


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1. Executive Summary

Write this section last! Include everything that you would cover in a five-minute interview.

Explain the fundamentals of the business:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

What is your products, who are your customers, who are the owners, and what do you think the

future holds for your business and your industry?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

State clearly how much you money your company need under the Transitional Support Scheme,

precisely how you are going to use it, and how the money will make your business more

profitable, thereby ensuring repayment.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________


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2. General Company Description

Mission statement:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

What business are you in? What do you do?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

What is your target market? (Explain briefly here, because you will do a more thorough

explanation in the Marketing Plan section.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Describe your industry. Is it a growth industry? What changes do you foresee in your industry, and

how is your company poised to take advantage of them?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Form of ownership: Sole proprietor, partnership, corporation, or limited liability corporation?

________________________________________________________________________________

Company history: Years in business, previous owners, successes, failures, lessons learned,

reputation in community, sales and profit history, number of employees, and events that affected

success. Discuss significant past problems and how you solved and survived them.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Most important strengths and core competencies: What factors will make the company succeed?What are your major competitive strengths? What strengths do you personally bring to the

business?

________________________________________________________________________________

________________________________________________________________________________

_______________________________________________________________________________


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Significant challenges the company faces now and in the near future: Go on to explain how the

financial assistance under the Transitional Support Scheme will help you meet these challenges.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Long term: What are your plans for the future of the business? Growth? If so, at what rate and

how will you achieve it?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

3. Products and Services

Describe in depth your products and services. (Technical specifications, drawings, photos, salesbrochures, and other bulky items belong in theAppendices.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

What factors give you competitive advantages or disadvantages? For example, the level of quality,

or unique or proprietary features.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

What is the pricing, fee, or leasing structure of your products and services?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

4. Marketing Plan

Market research: Why?

Every small business can benefit from doing market research to make sure it is on track. Use this

business planning process as your opportunity to uncover data and to question your marketing

efforts. It will be time well spent.

________________________________________________________________________________

________________________________________________________________________________


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________________________________________________________________________________

________________________________________________________________________________

Market research: How?

Primary market research means gathering your own data. For example, you could use the yellow

pages to identify competitors, and do surveys or focus group interviews to learn about consumer

preferences.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

The Marketing Plan:

Economics

Facts about your industry

________________________________________________________________________________

________________________________________________________________________________

Total size of your market

________________________________________________________________________________

________________________________________________________________________________

Percentage share of the market you have. (This is important only if you are a major factor in the

market.)

________________________________________________________________________________

________________________________________________________________________________

Current demand in target market________________________________________________________________________________

________________________________________________________________________________

Trends in target market growth trends, trends in consumer preferences, and trends in product

development

________________________________________________________________________________

________________________________________________________________________________


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Growth potential and opportunity for a business of your size

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

What barriers to entry keep potential new competitors from flooding into your market?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Products

In the Products and Services section, you described your products and services as yousee them.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Now describe them from your customers point of view.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Features and Benefits

List all your major products or services.

For each product or service, describe the most important features. That is, what does the product

do? What is special about it?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Now, for each product or service, describe its benefits. That is, what does the product do for the

customer?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________


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Customers

Identify your customers, their characteristics, and their geographic locations; that is,

demographics (Age,Gender,Location,Income level,Social class/occupation,Education)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Competition

What products and companies compete with you? List your major competitors, including their

names and addresses.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Do they compete with you across the board, just for certain products, certain customers, or in

certain locations?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Niche

Now that you have systematically analyzed your industry, your product, your customers, and the

competition, you should have a clear picture of where your company fits into the world.

In one short paragraph, define your niche, your unique corner of the market.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Marketing Strategy

Outline a marketing strategy that is consistent with your niche.

________________________________________________________________________________

________________________________________________________________________________


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________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Promotion: How do you get the word out to customers?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Advertising: What media do you use, why, and how often? Has your advertising been effective?

How can you tell?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Promotional Budget

How much will you spend on the items listed above? Should you consider spending less on some

promotional activities and more on others?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Pricing

What is your pricing strategy? Compare your prices with those of your competition. Are they

higher, lower, the same? Why? How important is price as a competitive factor?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Location

Is it convenient? Parking? Interior spaces? Not out of the way?Is it consistent with your image?

Is it what customers want and expect?

________________________________________________________________________________

________________________________________________________________________________


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________________________________________________________________________________

________________________________________________________________________________

Distribution Channels

How do you sell your products or services?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Sales Forecast

Now that you have described your products, services, customers, markets, and marketing plans in

detail, it is time to attach some numbers to your plan. Use the forecast spreadsheet to below to

prepare a month-by-month projection.

Month - Products Product 1 (Rs.) Product 2 (Rs.) Product 3 (Rs.) Total

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Total


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5. Operational Plan

Explain the daily operation of the business, its location, equipment, people, processes, and

surrounding environment.

Production

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Location

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Legal Environment

Describe the following: Company licensing and Permits and clearances with Local Authority,

Health, workplace, environment regulations, Trademark, copyrights, or patents etc.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Personnel

Number of employees, Type of labor (skilled, unskilled, professional), Quality of existing staff

Training methods and requirements, Who does which tasks?, Do you have written job

descriptions for employees?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________


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Inventory

What kind of inventory do you keep: raw materials, supplies, finished goods?, Average value in

stock; that is, what is your inventory investment?, Seasonal buildups?, Lead time for ordering?

________________________________________________________________________________

________________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Suppliers

Note the following information about your suppliers, their names and addresses, Type and

amount of inventory furnished, Credit and delivery policies, Should you be searching out new

sources of supply, or are you satisfied with present suppliers?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Credit Policies

Do you sell on credit? If so, do you really need to? Is it customary in your industry and expected

by your clientele? You need to carefully manage both the credit you extend and the credit you

receive.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

6. Management and Organization

The company employs_____ persons.

The Director is ________________________________________________________.

He has ______years experience in ______________________________________________


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Description of roles & Responsibilities of key personnel:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Organizational Chart

Professional and Advisory Support

1. Bank

________________________________________________________________________________

2. Accountant

________________________________________________________________________________

3. Consultants (If any)

_______________________________________________________________________________

4. Mentors and Key Advisors (If any)

________________________________________________________________________________


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7. Restructuring Plan

Indicate clearly how, the company, after taking advantage of the Scheme, will become viable

again on the basis of market evidence and forecast. (The Restructuring Plan should include

appropriate cost-cutting measures, including suspension of dividends and reduction/abolition of

non-generating assets.)

Amount of loan requested and for which purposes

________________________________________________________________________________

________________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

How you will use the funds?________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

What will this accomplish (how will it make the business stronger)?

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Requested repayment terms (number of years to repay). The interest will be fixed at repo rate

(presently 5.75%), but you may be able to negotiate a longer repayment term, which will help

cash flow.

________________________________________________________________________________

________________________________________________________________________________

Pledge/assignment of income proceeds

________________________________________________________________________________

________________________________________________________________________________


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Debt Schedule

DebtTo whom

payable

Original

amount

Original

date

Present

balance

Int.

Rate

Maturity

date

Monthly

paymentSecurity

Current

Past due

1

2

3

New Debt Schedule

Bank Usage Of

Fund

Amount

(Rs.)

Int.

Rate

No of

Repayment

Years

Maturity

Year

Monthly

Repayment

Security

DBM

Ltd.

1. Equipment

2. Working

Capital

3. Debt

Restructuring

(If

applicable)

Benefits of Restructuring (If applicable)

Initial

Bank

Amount to be

Restructured

(Rs.)

New

Int.

Rate

No of

Years

Change in

Maturity

Years From-

To

New Monthly

Repayment

(Rs.)

Monthly

Savings

(Rs.)

Security

(include

additional)


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8. Finance

Financial History and Analysis

Accounts for past three years (As per appendix___________)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Financial Plan

12-Month Profit and Loss Projection

Explain the major assumptions used to estimate company income and expenses. Pay special

attention to areas where historical performance varies markedly from your projections.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Three-Year Profit and Loss Projection

Keep notes of your key assumptions, especially about things you expect to change dramatically

over the years.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Projected Cash Flow (12-Months)

Explain your major assumptions; especially those that make the cash flow differ from a profit and

loss statement. Your cash flow will show you whether your working capital is adequate.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________


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Three-Year Cash Flow projection

Keep notes of your key assumptions, especially about things you expect to change dramatically

over the years.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Projected Balance Sheet - Three years

This is an estimate of what the balance sheet will look like for the next three years covered in your

projections.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________ ________________________________________________________________________________

________________________________________________________________________________

Breakeven Analysis

You can calculate this breakeven analysis in the 12 months Profit and loss forecast worksheet and

include the explanation here.

Break even sales for the first year is __________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

8. Appendices

1. ___________________________________________________________

2. ___________________________________________________________

3. ___________________________________________________________

4. ___________________________________________________________

5. ___________________________________________________________

6. ___________________________________________________________

7. ___________________________________________________________

8. ___________________________________________________________

9. ___________________________________________________________

10.___________________________________________________________


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Existing Proposed Total

(Rs.) (Rs.) (Rs.)

Plant and Machinery

Equipment

Furniture and Fittings

Other accessories

Sub Total

Working capital

TOTAL

Existing Proposed Total

(Rs.) (Rs.) (Rs.)

Ordinary Share

Preference Share

Other

DBM Ltd.

Other Banks

Other Sources

Other Means

TOTAL

Cost of Project

Means of Financing

Share Capital

Loans


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Rs.

Income From Sales

What your customers will pay for your product or service SALES (Invoiced)

Direct or Variable Costs

Paid labour (variable)

Materials

Other

Total Direct Costs

Gross Profit

Overheads or Fixed costs

Rent

Electricity/Water/Telephone

Wages & NPF Contribution

Repairs & maintenance

Transport & Travelling

Corporate Fee,Licences &Tax

Insurances

Postage & stationery

Marketing & Promotion

Bank interests & charges

Loan repayments

Depreciation

Other

Total Fixed Costs

Net profit (Before tax and drawings)

Gross Margin %

Breakeven (yearly)

Profit & Loss Forecast (12 Months)


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Year 1 Year 2 Year 3

(Rs.) (Rs.) (Rs.)

Turnover

Operating Costs

Gross profit

Other Operating expenses

Net profit before interest and

depreciation

Interest

Depreciation

Net Profit after interest and

depreciation

Estimated Profitability


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(Rs.) (Rs.) (Rs.)

Land and Building

Plant and Machinery

Furniture and fittings

Other Fixed Assets

Total Fixed Assets

Stocks

Raw Materials

Work in progress

Finished goodsCash and bank balances

Other Assets

Total current assets

Creditors

Bank overdraft

Short Term Loan

Other Loans

Total Current Liabilities

Net Current assets/liabilities

Net Assets

Share capital

Share Premium

Revaluation Reserves

Other Reserves

Retail earnings

Long term Loans

Total

Fixed Asset

Current Assets

Current Liabilities

Forecast Balance Sheet (3 years)

Capital employed


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Month 1 2 3 4 5 6 7 8 9

Receipts

Sales

Income from sales

Own Capital+Loans

Total

Payments

Raw materials

Rent

Electricity & Water

Telephone

Wages

Transport

Loan repayment

Loan Interest

Drawing

Other

Total

Balance

Opening Balance

Closing Balance

Cash Flow Forecast(12 Months)


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(Rs.) (Rs.) (Rs.)

Profit before tax

Depreciation

Other non-cash items

Total funds from operations

Issue of shares

Loan received

Total Sources

Loan repayment

Capital expenditure

Increase/decrease in working capital

Total

Opening cash and bank balances

Increase/decrease in net liquid funds

Closing cash balance

Sources of funds

Other Sources

Application of funds

Cash Flow Forecast (3 years)

Date post:	10-Apr-2018
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Business Plan Template - MTSP[1]

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