BUSINESS PLAN

LECTURER: MS MAMABOLO M.R

 SCOPE
• Introduction.
• Benefits of a business plan
• Updating your business plan.
• Preparing a business plan.
• Appendices.

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 INTRODUCTION
• A business plan is a worded document describing a potential
service or product that you wish to explore and turn into a
successful reality.
• An operational document to keep your business functional and
thriving.
• A clear, concise, and logical business plan assists different kinds
of businesses to thrive in a competitive contemporary world.
• Markets are constantly changing (volatile) due to
socioeconomic and political forces, therefore a business plan is
required to keep your business operational.

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 BENEFITS OF A BUSINESS
PLAN
• Develop a competent business strategy.
• Determine the feasibility and viability of the
venture.
• Provide a simulation of the real situation.
• Anticipate problems before they occur.

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 BENEFITS OF A BUSINESS
PLAN CONT…
• Aid in making informed decisions.
• Think through your value proposition
(benefits of a product) and USP.
• Convincing financial aid applications.
• Keep your business on track.

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 UPDATING YOUR BUSINESS PLAN
UPDATE YOUR BUSINESS PLAN THROUGH THE
FOLLOWING QUESTIONS:
• Are your targets and objectives achievable?
• Is the market changing?
• Do you require additional financing?
• Are you keeping up technologically?

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 PREPARING A BUSINESS PLAN

MAIN TIERS OF A BUSINESS PLAN

• The people (business needs).
• The market (business).
• The money (financial).
• The operational (technical, legal).
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 PREPARING A BUSINESS PLAN
CONT..
BUSINESS MODEL CANVAS
Help identify requirements to deliver the service.
• Target consumers.
• Key partners.
• Resources.
• Value proposition.
• Financial matters.
• Channels involved.
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 BUSINESS MODEL CANVAS

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 PREPARING A BUSINESS PLAN
CONT…
Traditionally you may jot down answers to the
four Ps.
• Product – what and how different.
• Place – where.
• Price – Cost.
• Promotion - method of promotion and
advertising.
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 PREPARING A BUSINESS PLAN
CONT…
You may expand to include the two Ps.
• Principal – what record, expertise, and
credibility do you bring to your venture?
• People – who do you have on board to
enhance competence and facilitate
success?

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 PREPARING A BUSINESS PLAN
CONT…
Business plans comprise and/or include:
• Primary research - interviews,
questionnaires, or focus groups to know
your target.
• Secondary research - internet,
government, or legal documents.

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 PRELIMINARIES AND INTRODUCTION

TITLE PAGE
• Clear title
• Names
• Submission date
• Keywords (optional)

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 PRELIMINARIES AND INTRODUCTION CONT…

EXECUTIVE SUMMARY
 Major factors of business idea (Intro, target,
channels, value proposition).
 Tables and illustrations.
 Print and bind separately if required.

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 PRELIMINARIES AND INTRODUCTION CONT…

INTRODUCTION
• Subject and purpose of the plan.
• Background to the business concept.
• Mission or vision statement.
• Compare your products to your competitors to establish a
niche or suitable position (e.g Maq washing powder).
• Give a timeframe for your approach.
• Include the scope (opportunity) and limitations of the
document.
• Indicate how your document is set out.
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 PROPOSED PRODUCTS OR SERVICES
 Describe the products or services that your
business idea will introduce.
 Motivate why you believe there is a need for
the product and why your company should be
selected and financed (e,g Charcoal, gas).
 Analyze the current local and global business
situation.
 Specify the future long-term possibilities.
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 MARKETS, MARKETING, SALES, AND RESEARCH STRATEGIES

• Identify the gap in the market (e.g filing stations in rural areas).
• Describe your marketing plan (advertising strategy) - focusing
on your target market, size, and extent of market share).
• Describe potential competitors in terms of their services and
products and compare the strengths and weaknesses against
your product or business.
• Forecast potential sales (expected sale revenue) and be
realistic about timeframes (quarterly, monthly, or yearly).
• Research into product lifecycles.

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 ORGANISATIONAL STRUCTURE AND
PERSONNEL
• Describe what kind of organisation you propose
(horizontal or vertical).
• How you propose to structure your company
(hierarchical structure) and determine the span of
control.
• Describe how you propose to run your company (virtual,
outsourcing, or insourcing).
• Describe your administrative and record-keeping systems
and procedures (stock-control system, post office).

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 ORGANISATIONAL STRUCTURE AND
PERSONNEL CONT…
• Describe how you will staff your company by:
Providing personal and professional details of
yourself and your staff and their expertise.
• Provide job descriptions for both permanent
and temporary staff.
• Compile a workplace skills plan and
recruitment and retention policies.

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 LEGAL REQUIREMENTS
• Describe any legal requirements for your
products (licenses or permits).
• Describe any contract that may be required
when collaborating with third parties.
• State any legal requirement you may have
(staff contract, staff, third party, and consumer
confidentiality agreement).

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 LOCATION OF COMPANY
• Indicate the location of the company.
• Include maps, photographs and
illustrations.

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 FINANCIAL PLAN
• Illustrate your budget.
• List your costs (Capital, Fixed and variable cost).
• Describe necessary financial statements (income,
balance sheet and cash flow).
• Forecast revenues (estimated/expected
revenues).
• State all advisory, consulting and legal costs.
• Describe how investors will be treated in terms of
potential profits and losses.
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 POTENTIAL IMPACT OR RISK ON
CURRENT BUSINESS
• Describe your current business situation and describe
how your proposed project may affect your current
business interest.
• Conflicts of interest that may occur.
• Internal and external risk and speculate the
consequences.
• Describe risk management contingencies or possibilities
(SWOT analysis or risk mitigation, pg 205).
• A reward section outlining intangible and tangible
rewards may be included.
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 EXIT STRATEGY

• Show that you are prepared for the future.

• Describe the failure (possible bankruptcy
or liquidation) and success scenario.

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 CONCLUSION
• Wrap up, and weigh the advantages and
benefits of your business for financial
attraction. Address the who, when, what
and as well how.

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 APPENDICES
• For instance, a corporate CV (pg. 206).

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