Empowering

African Entrepreneurs

THE TEF BUSINESS MANAGEMENT

ADVANCED COURSE: MODULE 5

DISCUSSION GROUP AND PRACTICE SESSION

1 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

TABLE OF CONTENTS

01 Business Plan Lecturers and Discussions

02 Tips on Writing Business Plans

03 Financial Statements

2 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

OVERVIEW OBJECTIVES

To succeed in your chosen business, writing a good business plan is At the end of the training, participants will be able to;
important. It is said that if you fail to plan you plan to fail. A lot of people ➢ Define Business Plan
consider business plan as only a necessity for financing as required by ➢ Understand the purpose of a Business Plan
banks. More will be derived if it is also used as a working document for
➢ Discuss Features of a winning business plan
business implementation, for start up and to fast track sustainable
➢ Understand components of a Balance sheet
growth for existing business.
➢ Discuss Components of Income Statement
This module is designed for business owners and entrepreneurs who are
➢ Explain Statement of cash flows
ready to create a business plan. All the essential steps are covered,
including; identifying the audience; gathering information; researching;
describing product plans and marketing, as well as sales and
accounting terms.

3 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

1.0 BUSINESS PLAN DEFINITION

CHOOSING A COMPANY OR ENTERPRISE NAME

It is a process, which forces the entrepreneur to consider objectively all

elements that contribute to a successful enterprise.

A good business plan is:

➢ a planning tool that spells out goals, strategies, and objectives in

a systematic, realistic, and honest manner.

➢ A guide for operations and performance measurement that will

serve management in the implementation of the project.

➢ A financing document that will obtain for the enterprise the

necessary funding provided it is well researched and documented

and the financial projections and assumption are supported.

4 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

Start-up
Tax Planning

Succession Planning Competence

Planning
Exit Strategy Cycle Governance
Business
Studies

Crisis Management Performance improvement

Initial Public offering Expansion or Cross border

Planning Cycle Business Studies

A WINNING BUSINESS PLAN

Below is a sample of a winning summarised format

EXECUTIVE SUMMARY

This may be all that top management may read for decision
making. Therefore, ensure that it includes:

➢ Project description

➢ Market

➢ Production capacity

➢ Total projection cost

➢ Financing plan

➢ Financial projection

➢ Financial/Economic performance indicators

➢ Conclusion.
 Empowering
African Entrepreneurs

2.0 FINANCIAL STATEMENTS

Financial statements refer to a specific set of reports produced in an entity's accounting system. The objective of

these reports is to provide information about the entity.

A complete set of financial statements includes 5 components:

➢ Statement of Comprehensive Income

➢ Statement of Changes in Capital

➢ Statement of Financial Position

➢ Statement of Cash Flows

➢ Notes to Financial Statements

7 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

COMPONENTS OF A BALANCE SHEET

➢ Non-Current Assets in Business

➢ Current Assets

➢ Net assets

➢ Intangible Assets e g. goodwill?

➢ Long-term Liability in business

➢ Current Liability

➢ Distinction between Debtor and Creditor

➢ Retained earnings

8 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

INCOME STATEMENTS

Also known as the profit or loss statement or the statement of revenue and expense, the income statement primarily focuses

on the company’s revenues and expenses during a particular period.

The income statement focuses on the four key items -revenue, expenses, gains, and losses. It does not

cover receipts (money received by the business) or the cash payments/disbursements (money paid by the business).

9 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

CASH FLOW STATEMENT

This is a financial statement that show how cash and cash equivalents flows in and out of
a business within a particular period. In other words, it helps ascertain if a business
engaged in any cash transaction during a given time interval from which it settles its debt
and take care of other financial, investment, and operating activities.

KEY TAKEAWAYS

➢ A cash flow statement is a financial statement that summarizes the amount of cash
and cash equivalents entering and leaving a company.

➢ The cash flow statement measures how well a company manages its cash position,
meaning how well the company generates cash to pay its debt obligations and fund
its operating expenses.

➢ The cash flow statement complements the balance sheet and income
statement and is a mandatory part of a company's financial reports.

10 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

CONCLUSION

Every business needs to have a written business plan. Whether it’s to provide direction or attract investors, a business plan is

vital for the success for your organization.

Financial statements are used for many different purposes by many different parties inside and outside the business. Clearly

all successful businesspeople should have a good basic understanding of financial statements .

Financial statements contain critical business information and are used for many different purposes by many different parties

inside and outside the business. Clearly all successful businesspeople should have a good basic understanding of financial

statements and the main financial ratios.

11 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

RESOURCES

STAGE MODULE TOPIC

BEGINNER'S MODULE 5 DISCUSSION GROUP AND PRACTICE SESSION

Exercise 2 List three purpose of a Business Plan

Exercise 3 Draw up a forecasted income statement for your present business. State the income and expenses of your
operation in USD after receiving a grant of $50,000
Further Reading Link http://www.wisegeek.com/how-do-i-analyze-a-companys-financial-earnings.htm#didyouknowout
https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
https://freedownloads.net/balance-sheets/

To read the extended lesson content! Please click the link below
https://drive.google.com/file/d/1_GZh-GF3q8NQqwmys57lVcMrrinEexap/view?usp=sharing
https://drive.google.com/file/d/1ngByhQYQJLy0ICxveM_wNFOMBKcwUTl_/view?usp=sharing
12 www.tonyelumelufoundation.org
 Empowering
African Entrepreneurs

THANK YOU!

13 www.tonyelumelufoundation.org