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BUSINESS PLAN BDS F13

TABLE OF CONTENTS

1. Back Ground (Overview)

2. Organisational and Management Structure

3. Operational Plan

4. Marketing Plan

5. Financing Structure

6. Internal Analysis

7. External Analysis

8. Risk Analysis.

9. Financial projections (P&L, Cash flow & Balance sheet)

10. Implementaion plan

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1. Background Information
· Business name
· Nature of business
· Date of incorporation
· Business contacts (tel, fax, and email.
· Brief Profiles of Share holders.
· Project Concept(objectives
-Project objectives- local production, export
-Clearly articulate the value proposition to the customers.
-Summarized history of major events since inception- e.g. started as sole
proprietorship, incorporation, merger/acquisition, change in ownership to
Current status, etc.
-Mission, vision and objectives of the business, philosophy.

2. Organisational and Management Structure

A) Organogram

B) Management structure

Name Qualifications Age Nationality shareholding% Position Experience

Comments

· Support functions-accounting and controls,

· audit, IT,
· Corporate Governance,
· Training and employee welfare,
· Quality Assurance

3. Operational Plan

a) Description of the operation of the business

§ Location: owned/rented/leased.
§ Source, cost, quality and availability of raw material supply and relations with support
industries/linkages
§ Source/suppliers of equipment, other technical support
§ Description of production/manufacturing process
§ Plant size/layout in comparison with other known plants.
§ Reason for choice of technology: labour intensive/capital intensive.
§ Project location in relation to suppliers, markets, infrastructure and manpower

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 § Infrastructure/utilities availability (roads, power, telephone, water, security, etc)
§ Comments on special technical complexities and need for know how and special
skills
§ Production plan
§ Processes
§ Production Capacity(How much are you currently producing, what is the
§ Production capacity)

capacity Production per day Annual production

Installed capacity
Current production capacity
Optimum production
capacity

4. Marketing Plan

A) Market
· Description of the market for the product or service,
· Benefits that the products/services meet.
· Market segment targeted by the product/services.
· Key customers and demand levels.
· Market statistics on existing and potential demand.
· Projected volumes, unit prices, sales objectives and estimated market share of
the business.
· Marketing strategies, potential users and distribution channels.
· Present sources of supply for product.
· Competitive advantage of project, market competition including the
possibility of substitutes.
· Competitive Strategies
o Product Strategy-
o Promotion Strategy
o Pricing Strategy
o Distribution/Place Strategy
o Critical success factors for the business

5. Financing Structure

A) Financial Projections and Funding Request

· Proposed Financial structure indicating expected source and terms of equity
and debt financing
· Type of financing required, amount and terms
· Proposed security
· Key operating and financial assumptions.

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b) Security to be Provided
· Description/nature, location of assets
· Current valuation of the security and any existing charge?
· Detail the nature of security offered such as property, other assets and guarantees.
Remember assets offered as security should not be encumbered by other financiers

Description Age Original Open Estimated Forced

cost Market/Book Sales
Value

Immovable property-plot
number/Ward
Machinery& Equipment
Motor vehicles
Livestock
Bank guarantee
Any other guarantee
Life Insurance
Policy/Surrender value
Other

6. Internal Analysis (Strength and weaknesses)

1.What is the business going to do better than its competitors
2.What is the business’s strong points
3.What is the businesses weak points
4.How can the business increase its sales
5.What can make the business fail or go down

7. External Analysis (Analysis using Political, Economic, Social, Technological, Legal &
Environmental factors, opportunities and threats)
8. Risk & Sensitivity analysis.
What could stop me from succeeding
Is my machinery insured
Am I insured
Can somebody in my family take over if am ill
Can I get spares for my machinery
What will stop me from selling the amount I said I will sell
Does the price of my stock go up quickly
Can I get enough people into my business to do the work

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 9. Financial projections (P&L, Cash flow & Balance sheet)

· Key assumptions: Projected demand levels and market share,

· Estimated total project cost- land, construction, installed equipment and working
capital
· Projected 5 year Profit and Loss accounts: (First year month-by month projections)
· year projected financial performance with underlying assumptions (Profit & Loss
Account, Balance sheet, Cash flows, return on investment)
· Critical factors determining profitability. 

Projected Profit & Loss Account 

Year 1  Year 2  Year 3  Year 4  Year 5 

Trading 
Total Sales 
Stock in hand at 
beginning of the 
period 
Total Purchases 

Total stock at hand of 
the period 
Gross Profit 
Total expenses 
Depreciation 
Loan Repayment 
Income tax paid 
Net Profit 
ASSUMPTIONS 
Sales Units 
Sales price 
Variable costs 
Overhead expenses 
Depreciation rates 
used 
Tax rates used 
Other assumption

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 Projected Balance Sheet

Year 1  Year 2  Year 3  Year 4  Year 5 

Fixed Assets 
Less accumulated 
Depreciation 

Net fixed assets 

Investments 

Current assets 

Stock 
Debtors 
Cash and bank 
Total current assets 
Current liabilities 

Creditors 
Taxation 
Loans­current portion 
Bank overdraft 
Total Current liabilities 

Net current assets 

Total net assets 
Capital employed 
Equity 
Share capital 
Retained earnings 
Capital reserve 
Shareholders loans 
Shareholders interest 
Grants 
Long­term liabilities 
Loans 
Deferred tax 
Total capital employed

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 CASH FLOW PLAN 

YEAR  200  Feb  Mar  Apr  May  Jun  Jul  Aug  Sep  Oct  Nov  Dec 
Jan 
Cash Inflow 
Sales 
Other  income 
(e.g int. earned, sale 
of asset or property) 
Total  cash 
inflow(A) 
Cash Outflow 
Land 
Plant & machinery 
Equipment 
Vehicles 
Other assets 
Operating / non­ 
operating costs 
Salaries & wages 
Electricity 
Utilities 
Water 
Telephone 
Electricity 
Tax 
Sales tax 
Income tax 
VAT 
Financing costs 
Loan repayments 
Interest on overdrafts 
Other costs 
Fuel 
Insurance 
Rent 
Raw materials 
Marketing 
Total  cash 
Outflow(B) 
Net cash flow(A­B)

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10. Implementaion plan

N.B: Promoters are required to give an implementation schedule of the project.

Approval of the loan may elapse after a specified time by the financier.

When will the project start

What is the first thing that must happen
When must it happen
List the activities which must happen after that
with reasonable dates and names of responsible
people.

Provide a Gantt chart.

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