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OBJECTIVES
By the end of the presentation participants will be able to:
Point out importance of planning in enterprise development
List benefits associated with business planning
Mention areas that entrepreneurs can focus when preparing business plans
List format and content of business plan for enterprises
BASIC STEPS IN BUSINESS PLANNING
“Give a man a fish and you will feed him for a day. Teach a man to fish and you will feed him for a lifetime. Teach a person to start a fish farm and you will feed a community for a lifetime”. Nickles, McHugh, McHugh (2002)
PLANNING
Planning is one of the most important functions of an entrepreneur and involves the following: Anticipating and preparing in the
present to face conditions that may arise in the future such as change, uncertainty and risk
PLANNING
Making decisions about vision and mission statements, policies, procedures and setting objectives to achieve the strategic goals of the business;
Deciding in advance what to do, who is to do it, how to do it, where to do it, and when to do it.
BUSINESS PLANNING
Business planning therefore involves: Identifying and forecasting the
company’s future business and market opportunities, and;
Organizing, through appropriate strategies and actions programmes, to reach the market and exploit the opportunities.
BUSINESS PLAN
The outcome of every planning function is a PLAN, which is a written document that specifies future courses of action that an organization undertakes to achieve its competitive edge in the market.
BUSINESS PLAN
A BUSINESS PLAN is a detailed written statement (document) that describes The nature of the businessThe target marketThe advantages the business will
have in relation to competitionThe resources neededThe qualification of the owner(s)
WHY IS PLANNING IMPORTANT IN ENTERPRISE DEVELOPMENT?
What business (product/service) must be engaged in?
How to see the business outlook (state and features) in one, two, five or ten years from the present time?
What will be done (strategies) to get the business there?
WHY IS PLANNING IMPORTANT IN ENTERPRISE DEVELOPMENT?
Who (staff, customers, suppliers, government agencies and officials, etc) will help in getting the business there in the future?
When will activities and tasks be performed (every day, weekly, monthly, yearly, etc)?
WHY IS PLANNING IMPORTANT IN ENTERPRISE DEVELOPMENT?
Where will the activities and tasks be performed (Accra, Kumasi, Tamale, London, Lagos,);
How much will it cost to start up the enterprise, its profit levels over the years, etc?
What is expected returns and risks associated with the Business?, etc
CONTENT OF BUSINESS PLAN
The length and sequence of contents in a business plan vary with the complexity of the proposed venture.
However, certain key elements are always needed to describe WHY, HOW and WHEN economic success will be achieved.
OUTLINE OF A BUSINESS PLAN
EXECUTIVE SUMMARYShort description of the business,
major goals and objectives, economic benefits, amount of money required
Vision Mission statement
COMPANY BACKGROUND INFORMATION
Registration, promoters, contact information, etc
Brief description of business activities since commencement
PRODUCTS AND SERVICES
Core competencies Products or services Product attributes and how they
benefit the customer Technology Strategic objectives Routes to success
MARKET ANALYSIS
Market sizeMarket growthMarket segmentsTargeting and positioningCustomer dynamicsCustomer buying decisions
MARKET ANALYSIS
Political dispensationEconomic trendsLegal issuesEnvironmental factorsSupply and distribution
channels
MARKETING PLAN
Target market and how to reach it
Competitor analysisProvide list of potential customers
OPERATIONAL PLAN
Product development processkey logisticsDescription of the equipment
requiredDescription of the production
processQuality control, etc
FINANCIAL PLAN
Important AssumptionsInvestment planSales forecastForecast Income and Expenditure
StatementProjected Balance SheetProjected Balance SheetForecast Cash Flow statementKey Financial IndicatorsKey Financial IndicatorsBreak Even Analysis Break Even Analysis Managerial DecisionsManagerial Decisions
THE MANAGEMENT TEAM
Management and Organization Board of Directors Management structure Key personnel Organogram/ organizational
structure
IMPORTANCE/BENEFITS OF A BUSINESS PLAN
Raising capital or seeking Raising capital or seeking partnership with an investor (s)partnership with an investor (s)
Guiding the growth of the business to achieve higher levels of profitability, market share and competitiveness
Assess the performance of the organization periodically
IMPORTANCE/BENEFITS OF A BUSINESS PLAN
Make judicious use of company’s resources such as time, money, staff and their skills, customers, suppliers, equipment, etc.
Concrete statement of purpose, which is used to communicate with staff in a step-by-step agenda for achieving the vision and mission of the business.
CONCLUSION‘Government can't create
wealth, but it can create the conditions for private enterprise to flourish’. Bill Owens
END OF PRESENTATION
THANK YOU FOR LISTENING.
COMMENTS, QUESTIONS AND SUGGESTIONS
