This is brief presentation on how to write business plan. Business plan, what are the contents and how it should be presented. What is business plan. No Jargon. It is like telling story. Simple and should be easy to understand. You should cover all areas of future. Action is better.Write a summery.
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BUSINESS PLAN
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Business Plan is a tool, designed to transmit information to a wide range of
people.
Financiers, staff, head office, etc.
The plan is a selling document.
Never forget to tell the reader what response is wanted and ask for it because,
just as with any selling process closing the deal is crucial.
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YOU ARE TELLING A STORY
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Avoid using
jargon,
mnemonics or
abbreviations
that the reader
will not
understand
Proposals are
often passed
on by the
original
recipient –
who may
understand
technical
terms to a
general
manager or a
finance
manager, who
may not and
could find the
jargon
confusing and
off-putting
Before
beginning to
write you must
have clear idea
of the story
you are telling
The story
should have
beginning, a
middle and an
end.
A story grabs
the attention
of the reader
and stimulates
interest and
imagination . It
flows …….. So
should a
business plan
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5
Think of your plan as an action story,
not literary criticism
Use as much as possible to say what
you will do and when, rather than
describing scenery
You must stimulate the reader’s
enthusiasm for your project so that he
or she will ‘buy in’ to it
The story of you, your business and
what you propose to do with it is a
fascinating story, tell it that way
USE ACTION WORDS
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You probably have a few
minutes to make a good
impression with your plan. By
the time the reader has finished
the summery and maybe the
introduction you have won or
lost.
The summary should never be
more than a page long. It
should not include all the
evidence for your case just an
outline of the most important
points. It says what the
situation is and what is
proposed.
SUMMARY
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THE BACKGROUND
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As the story, it is important to set the
scene. Let the reader know the history of
the organization or business. For new
enterprise give some history of the market
or service, how it has developed and
where you think it is going.
What does organization do?
Where does it do it?
How does it do it?
Does it sell product or service and, if so, how?
Does it have key suppliers, customers or staff?
How many outlets or factories does it have?
How big it is? ( turnover? profits? Staff ?)
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For start-ups with no trading history there should be some background to the
market, competitors and management team. If the background suggests
operational problems explain how they arose, what has been learned and how they
will be or have been resolved.
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Say something about
yourself and rest of the
people who run the
organization
The most important
factor for investors in
evaluating a proposal is
the management team
This is the place to
review the organization
structure and the skills of
the organization as a
whole and key people
within it
Show your organizational
structure
For fund raising
document it will
probably be appropriate
to put a more detailed
CV for each key manager
in an appendix
THE PEOPLE
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THE OUTLINE OF THE BUSINESS/
ORGANIZATION
What product or
service you
provide
The market
place you
operate in
The mechanics
of you provide
the product or
service
There are three sections to this explanation.
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WHY ARE YOU DIFFERENT
13
2
If your product or services are unique make that clear
Superiority is something you should shout about- so do. Make sure the reader
doesn’t have to search for reason to back you
1
Talk about your competitors. Show that you know who they are, how they are organized3
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THE MECHANICS
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Supply
Do you have unique source of
supply
Processes
Distribution
What are your key processes
Premises
Do you have factories, offices,
showrooms, shops?
How do you deliver your product
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WHAT CAN GO WRONG?
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THE MARKET
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Are you trading in a particular niche within a larger market. If so, explain the
segmentation.
Is the market growing, static, shrinking? The reader want to know what
might happen, how ever speculative.
SEGMENTATION, STRUCTURE, SIZE, AND TRENDS
Issues that determine competitive success include distribution, pricing, brand
strength, packaging and promotion as well as financial strength. Set out these
issues briefly.
Explain who are your relevant competitors are.
Are there alternative products? These are also competitors.
COMPETITORS
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THE MARKET
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Explain whether the market is price-sensitive, dependent upon location of outlets, driven by quality of
product or service, etc.
Describe important factors about the key competitors. The reader needs enough information to assess
whether you can compete effectively.
How do you compete?
Customers
Who are your customers?
Is your customer store or supermarket buyer.
Do you have any dominant customer who represent very high
proportion of your sell?
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THE PROPOSAL
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State your proposal clearly. Don’t forget to tell them why you are here
Reiterate your requirement in the summary at the beginning of your
business plan. Make sure the reader has not turned the first page
before knowing what you want
How much are you investing. There are many ways but non as
persuasive as money
Show salaries and fees clearly; justify them if necessary
State if funds have already been raised towards total requirement
PROPOSAL
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RISKS
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Help the reader by telling them what might go
wrong but also what you will do about it
Each risk is evaluated
The response to things going wrong is given
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