Progressing to become a leader - PBF

1 Progressing to become a leader Progressing to become a leader WHAT IS A BUSINESS PLAN? 1 Table of Contents 1. WHAT IS A BUSINESS PLAN? .. 4 Who is the Audience? .. 4 Content .. 4 Presentation .. 5 2. 4 BIG FAT BUSINESS PLAN LIES .. 6 Strategic Planning Process .. 7 3. STATEMENT OF CONFIDENTIALY AND NON-DISCLOSURE .. 8 4. EXECUTIVE SUMMARY .. 9 Business Description .. 9 What type of business is it ( manufacturing, consulting, reselling, services)? .. 9 Products and Services .. 9 The Market .. 10 Competition .. 10 Main Competitors.

2 11 Operations .. 11 Management Team .. 11 Risk/Opportunity .. 12 Financial Summary .. 12 Financial Summary .. 13 Executive Summary checklist: .. 14 5. BUSINESS DESCRIPTION .. 15 Industry Overview .. 15 Company Description .. 15 Mission Statement .. 16 History and Current Status .. 16 Goals and Objectives .. 16 Critical Success Factors .. 17 Company Ownership .. 17 Exit 17 Products / Services .. 18 Product/Service 18 Unique Features or Proprietary Aspects of Product/Service .. 19 Production .. 20 New and Follow-on Products/Services.

3 21 PIPELINE STRATEGY .. 21 6. THE MARKET .. 24 SWOT Analysis .. 24 Industry Analysis .. 26 General Information .. 27 Size, Growth Rate, Trends, Drivers of the Industry .. 27 Sensitivity to Economic Cycles & Seasonality .. 27 WHAT IS A BUSINESS PLAN? 2 Legal, Political and Economical Factors .. 27 Sociocultural 27 Technological Factors .. 28 Finance Norms & Patterns .. 28 Market Analysis .. 28 Competitor Analysis .. 30 23 Creative Ways to Research your Industry Competitors .. 34 7. MARKETING AND SALES STRATEGY .. 37 Introduction.

4 37 Market Segmentation Strategy .. 37 Targeting Strategy .. 38 Positioning Strategy .. 38 Corporate Message and Image .. 38 Product/Service Strategy .. 38 Pricing Strategy .. 39 Distribution 39 Promotion and Advertising Strategy .. 40 Marketing Vehicles .. 40 Promotional Budget .. 41 Sales Strategy .. 41 Sales Forecasts .. 42 8. DEVELOPMENT .. 43 Development Strategy .. 43 Development Timeline .. 43 Development Expenses .. 43 9. MANAGEMENT .. 44 Company Organisation .. 44 Management Team .. 45 Management Structure and Style.

5 45 10. OPERATIONS .. 48 Operations Strategy .. 48 Scope of Operations .. 48 Ongoing 49 Location .. 49 Facilities and Equipment .. 49 Personnel .. 49 Production .. 50 Operations Expenses .. 51 Legal Environment .. 52 Inventory .. 52 Suppliers .. 52 Credit Policies .. 53 11. FINANCIALS .. 54 WHAT IS A BUSINESS PLAN? 3 Start-up Funds .. 55 Financial History and Analysis (current businesses only) .. 56 Current Financial Position (current, takeover or franchise businesses only) .. 56 Operating Forecast .. 56 Break-Even Analysis.

6 57 Balance Sheet .. 57 Income Statement .. 57 Cash Flow .. 58 12. OFFERING OR FUNDING REQUEST .. 59 Offer .. 59 Capital Requirements .. 59 Risk/Opportunity .. 59 Valuation of Business .. 60 Exit 60 13. REFINING THE PLAN .. 61 For Raising Capital .. 61 14. APPENDIX .. 64 Copyright 2016 Makarios Training and Development (Pty) Ltd All rights reserved. No part of the material within this document may be reproduced, stored in a retrieval system, translated or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Makarios Training and Development (Pty) Ltd.

7 Contact Details: Lesley Coetzee Managing Director 082 454 8408 WHAT IS A BUSINESS PLAN? 4 1. 1 WHAT IS A BUSINESS PLAN? A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organisation or team attempting to reach those goals. Business plans may target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5-year business plan is required, since investors will look for their investment return in that timeframe WHO IS THE AUDIENCE?

8 Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organisation or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers. External stake-holders of non-profits include donors and the clients of the non-profit's services. For government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the International Monetary Fund, the World Bank, various economic agencies of the United Nations, and development banks.

9 Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organisation. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans.

10 Operational plans describe the goals of an internal organisation, working group or department. Project plans, sometimes known as project frameworks, describe the goals of a particular project. They may also address the project's place within the organisation's larger strategic goals. CONTENT Business plans are decision-making tools. The content and format of the business plan is determined by the goals and audience. 1 Wikipedia WHAT IS A BUSINESS PLAN? 5 For example, a business plan for a non-profit might discuss the fit between the business plan and the organisation s mission.