BUSINESS PLAN

“Plan your work and work your plan.

If you fail to plan, you plan to fail ”

 What is a
It is a document drawn up by an
business plan ? entrepreneur to indicate what the
nature of the business is and what
steps need to be followed in order
to make it a successful business.

It is like a manual or roadmap

against which the entrepreneur
can constantly test himself /
herself to determine if he / she is
still on the right track.

This Photo by Unknown Author is licensed under CC BY

 Reasons for drawing up a business plan

Enables
Mimics the reality of
entrepreneur to Give a preview of Helps to identify
the business
logically write down the business. possible obstacles.
environment.
thoughts.

Continuously offers
Guides the management the
It measures the
entrepreneur in the It is a tool to obtain opportunity to
viability of a
decision-making financial assistance. adapt planning to
business venture.
process. changing
circumstances.
 Requirements of a
good business plan
The document must tidy display , clean and be
attractive .

Contains all necessary information, without being

clumsy and cumbersome.

It should be clear and legible.

The information must be logically organized and

legible.

Information must be supported by facts and

evidence.
Which information should A business plan should answer the following questions
provided :

there in a business plan Who would be interested in buying the product / service?
summarized to be?
Why would they want to buy it?

How will the product / service be promoted?

How much is the marketing going to cost?

Who will deliver / manufacture the product / service and

how much will it cost?

How will the business be organized and managed?

Where will the money come from to start the business?

Is the business going to be profitable?

 IMPORTANT!!!!
It 's not a fast and easy task of drawing up a
business plan - it takes a lot of time , research and
planning . With a good business plan you have a
better chance to get a loan and make a success of
your enterprise.
THE COMPONENTS OF A
BUSINESS PLAN

A business plan must

include the following:
• Front page
• Index
• Contents
• Attachments
 The cover
A business plan must be attractive and professional.
This is important that your entire business plan ,
including the front page reflects how serious you
are.

The front page must contain the following

information:
• The name of the business .
• The entrepreneur's name.
• Address of the business and relevant contact numbers .
• Business logo.
• The date on which the business plan was prepared.
 The table of contents

Click on the following page to view a business

plan table of contents. It is so that people can
know what's in you business plan and which page
number they can find the information on.
Make sure that the table of contents show what's
in your business plan and that the page numbers
are correct .
 Contents
INDEX
Krummels and Curls Coffee shop :
1.1 Products and services 1
1.2 Coffee shop 2
1..3 Wi-fi to browse the web te sniffel 3

Business Objectives 4

Business Ownership 5

The production plan 6

4.1 The Coffee Shop 7

4.2 Wi-fi to browse the web te snuffel 7

The marketing plan 8

5.1 Marketing objectives 8
5.2 Market research and target mark 8
5.3 Competitors 9
5.4 Advertising and trademark extension 9

The management plan 10

6.1 Key Employees and their role 10

SWOT analysis and summary 11

The financial plan 12

8.1 Start-up costs 12

8.2 Fixed and variable cost 12
8.3 Break-even points 13
8.4 Margin on sales 13
8.5 Profit Percentage 14
 Description of the products / services that
the company offer
This Summary must short and powerful . It must be focused on the most important aspects of
you business plan . a good Summary will grab attention of your readers and they will be
intriguied to read further.

• You need to explain the following briefly:

 Explain the nature of the business .
 Specify which products and services the business offers .
 Say what the demand for your products and services are or will be.
 Include a description of the location of the business .
 Describe briefly what makes your business products unique .
 Say if you your goods and services are classified as luxury or at a cheap price to give an
idea of where they fit into the market.
 Objectives of the
business
In this part of the business plan :

 Give your business ' vision statement , ie . a

statement of what the business intends to reach
over the medium or long term.

 Describe your business’ short -term - and long term

objectives and explain how you plan to reach them.
Ownership In this section supply the following
information :
• The name of the business: If you registered the
business, give the name you registered. If you have
not registered the business, enter the name you are
going to use or plan to register.
• The form of ownership of the business. Is the
business a sole trader, partnership or company?
• Where the business does most of its business or
where the business is based when there are many
tasks. The date the business was established if it
was already established.
• The names of all the business owners, if there is
more than one owner.
• A brief description of the business experience the
business owners have.
 Production plan
The production plan must specify which type production
system the business use . It must also the following
specify :

 Where the business will retrieve its raw material from.

 Which equipment and machinery it needs to
manufacture products.
 Which equipment and machinery the business already
has and what it must get to make manufacturing
possible.

This Photo by Unknown Author is licensed under CC BY-SA

Marketing plan
The What marketing aims to achieve the business.
marketing
plan should
include the
following An explanation of how your products and services
information will benefit customers.
:

Details of the market research you have done to

determine if there is a market for your business.

Details of your target audience that you have

identified for your business.

Information about your competitors and a plan of

how you plan to stay ahead of them.

Details of how you plan to advertise and brand

your business and what your advertising budget
will be.

Information on the monthly and annual sales

target targets you have set for the business.

Information on how you plan to price your

products and what means of payment your
business will accept.

This Photo by Unknown Author is licensed under CC BY

Management A management plan
contains the following
plan information:
• The names of the managers of
the business.
• Details of their work experience
in management positions.
• Information about other
businesses they run.
• Who will run the business - will
the owner run it or will he hire a
general manager or CEO to do
it?
• CVs of all management staff in
the business.
SWOT analysis and
summary A SWOT analysis is a method to
help your business analyze
according to its strenghts ,
weanesses, opportunities and
threats ; anything that determines
the success of the business.
A business plan must alsoinclude a summary
of the SWOT analysis. In your summary you
must show that there are more opportunities
and strengths than threats and weaknesses
in your business idea. You must also show
with strategies, how you will overcome the
day you face threats and weaknesses of
your business and not negatively influence
your business success.
Financial plan One of the most important
This is the business
owner's opportunity to
parts of a business plan. show that the business's
No business will work if it is finances are well planned
not financially feasible. and that the business is
financially viable.

The financial plan begins

That's the final part of your by setting the business's
business plan ; it is financial goals. For
therefore the part of the example, it may say that
business plan that the the business strives to
investors will remember achieve specific profit or
most ! sales goals within a
specific period.

The financial plan then

provides information on It also provides the capital
how much financing the resources that the owners
business needs to start or have investigated.
expand.

This Photo by Unknown Author is licensed under CC BY-SA

 Financial plan

The financial plan must include the

following information:

 Fixed and variable cost

 Break-even points
 Margins on sales
 The profit percentage

This Photo by Unknown Author is licensed under CC BY-SA