KICK START YOUR BUSINESS PLAN

Dear friend, the most important thing to do, if you decide to start, expand or improve your own business is your business plan. Here are a list of questions that need to be answered to kick start your business plan:




Cover / Front Page:
• What do you want to call this document?
• Business Name to use on cover
• Logo – do you have one?
• Physical and postal address
• Telephone
• Cell
• Fax
• E-mail numbers




This goes either on the cover or on the introduction page, i.e. before the Executive Summary.
• WHO ARE YOU
• WHAT DO YOU NEED
• PAYBACK PERIOD


Executive Summary:
• This is a brief overview of your Business Plan, short and as interesting as possible
and includes the following:


1. Your business concept.
2. Financial features.
3. Financial requirements.
4. Current state of your business, i.e. when it was formed, principal owners, key
personnel and major achievements.


Description of Business:

• Overview of the Industry in which you compete and operate.
• Discuss the present and future situation in the industry, the market segments, range
of products, new developments, global /national/economic trends and indicate how
you fit into the market place and how the above will impact on your business.


Discussion of your Business:

• Describe the purpose of your business
• Brief history
• Target market
• Type of business
• When it was started
• Legal structure, eg. Cc, private etc
• List of owners and experience
• How will you reach your market and refer to or explain any setbacks, losses,
abnormalities in historic information and major accomplishments.
• Description of your products/services
• Describe each of your products/services in layman's terms and their specific
features, i.e. uniqueness and how you will retain your competitive edge, customer
needs fulfilled and how you want people to view your products or services.
• Who are your main competitors
• How are you positioned relative to your competitors.
• Include any patent / trademarks / or copyrights.


Production Process:

• Describe the process of delivering a service or the production process for
manufacturing your products.
• Give a technical outline containing details and capabilities of your machinery and
equipment
• Provide a description of your location, features, floor layout, proximity to competitors,
leasing and purchasing conditions.


Your Pricing Strategy:
• Discuss what you will charge for your product.
• How did you derive the price of your product
• Where does this place you in your industry in terms of increasing market share and
profitability.


Management and Staffing Requirements:
• Give the strengths and weaknesses of the people involved in your business.
• If there are any weaknesses, explain how they will be overcome.
• Include brief CV details depicting the following:
1. Age
2. Education
3. Experience of all key personnel
4. Specify their share of ownership and what each is responsible and accountable
for.
5. Who will be making decisions.
6. Address how many people you will require and the skills they need to possess as
well as their cost.
7. Give details as to how you will recruit and train.
8. Include also a list of external support services in terms of accountants,
advertising agents, lawyers and others.


Risk and Reward (SWOT Analysis):

• Give a list of everything that can go wrong and go right and an outline of how the
entrepreneurial team can respond - price cuts, cancelled contracts etc.
• Give details of what the rewards the business will deliver and to whom, when and
how much
1. equity stake offered
2. dividend policy
3. return on investment
4. potential capital gains on exiting.


The Market:
Customers:
• Give a description and substantiate your specific target market and define the
characteristics of the people you want to sell to - cost, preferences, cash or credit,
quality, concerns, circumstances and their geographic location.
Size & Trends
• Define the total market size and your estimated share you intend capturing and the
factors affecting growth such as industry, socio-economic trends, government policy,
population shifts and the impacts thereof citing sources and credentials.
Competition
• Indicate where your product or service fits in the competitive environment stating:
1. Who your competitors are
2. Their estimated market share
3. Their strengths and weaknesses in terms of sales, quality, distribution, price,
production capabilities, image, service and reputation.
Projected Turnover
• Provide a projection of your sales for at least the next three years stating your
assumptions and sources justifying the credibility of your numbers.
• Provide an action plan for how you will get the customers to buy your product or
service
• How will you educate them
• What features will will emphasize
• What techniques will you employ and how will you focus your efforts.
• Describe your method of sales and the available distribution channels and whether
you will be selling direct to the public or using representatives, distributors or brokers.
Sales and Marketing
• Include a description of your strategy and list of all the selling and promotion tactics
and materials you plan to use.


Financials:

• Prepare detailed financial documents that include:
1. Historic information for at least three years in respect of income statement and
balance sheets
2. Project forward for income statement, balance sheet and cashflow in the first
year on a monthly basis followed by at least two years on an annual basis.
3. Include a summary of key ratios
4. Provide an analysis of all notable variances from previous performance, as well
as cash flow and profit break-even turnovers.
5. A sensitivity analysis for turnover drop, overheads increasing and lower than
budgeted gross margins being achieved.
6. Include effects of seasonality and business cycles, all assumptions with regard to
own contribution, amounts of loans required from whom, repayment periods and
interest rates and what will be purchased, purchasing and sales terms, what
facilities are available and what security is offered.


Supporting Documentation:
• Curriculum Vitae
• Letters of intent
• Quotes
• Floor layouts, plans or diagrams
• Organograms
• Lease documents
• Bond Documents
• Media cuttings
• Census/market research reports
• Diagrams/Charts/Tables/Maps
• Credit References
• Personal Balance Sheets of Owners
• Sales & Marketing Implementation Program



I sincerely hope this will help you to, at least, start with your business plan. Once you start something, to carry on gets easier.