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What is a Business plan?

A Business Plan is a document in which a business opportunity, or a business already under


way, is identified, described and analyzed, examining its technical, economic and
financial feasibility.
The Plan develops all of the procedures and strategies necessary in order to convert the
business opportunity into an actual business project.

Why need a Business Plan?


1. To prove that you’re serious about your business.
2. To establish business milestones.
3. To better understand your competition.
4. To better understand your customer.
5. To enunciate previously unstated assumptions.
6. To assess the feasibility of your venture.
7. To document your revenue model.
8. To determine your financial needs.
9. To attract investors.
10. To reduce the risk of pursuing the wrong opportunity.
11. To force you to research and really know your market.
12. To attract employees and a management team.
13. To plot your course and focus your efforts.
14. To attract partners.
15. To position your brand.
16. To judge the success of your business.
17. To reposition your business to deal with changing conditions.
18. To document your marketing plan.
19. To understand and forecast your company’s staffing needs.
20. To uncover new opportunities.
 Why Use a Business Plan?
 Provide a road map
 Feasibility
 Focusing device
 Foresight
 Raising capital
 Manage your business effectively
Features of a Good Business Plan
. Executive Summary
2. Business Description
3. Market Strategies
4. Competitive Analysis
5. Design and Development Plan
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6. Operations and Management Plan


7. Financial Factors

What is the purpose of a Business Plan?


The purpose of a Business Plan is to identify, describe and analyze a business opportunity
and/or a business already under way, examining its technical, economic and financial
feasibility.
Moreover, it should serve as a business card for introducing the business to others: banks,
investors, institutions, public bodies or any other agent involved, when it comes time to seek
cooperation or financial support of any kind.

A Business Plan has a dual function:


Management Tool:
 Provides economic/financial projections.
 Enhances the monitoring and control of the business by following up the results
obtained and analyzing management indicators.
 Introduces an analysis of the supply and demand.
 Reflects the commercial strategy and the marketing policy.
 Identifies the guidelines for the management of human resources.
 Analyzes the key factors of success and the risks of a business.

Planning Tool: The company assumes and takes responsibility for the definition of its
objectives:
 With results-oriented actions.
 Strict fulfillment of its economic commitments.
 Orients decision-making processes:
 Provides qualitative and quantitative information.
 Planning conforms to a homogeneous pattern.
 Why prepare a Business Plan?
Because it provides a global analysis of the business;
 Because if forces us to analyze whether the business project is feasible or not;
 Because if forces us to make a strategic reflection on the business;
 Because it will help to manage the business; and
 Because it serves as business care introducing the company.
Types of Plans
The Miniplan
A miniplan may consist of one to 10 pages and should include at least cursory attention to such
key matters as business concept, financing needs, marketing plan and financial statements,
especially cash flow, income projection and balance sheet. It's a great way to quickly test a
business concept or measure the interest of a potential partner or minor investor. It can also
serve as a valuable prelude to a full-length plan later on.
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The Working Plan


A working plan is a tool to be used to operate your business. It has to be long on detail but may
be short on presentation. As with a miniplan, you can probably afford a somewhat higher
degree of candor and informality when preparing a working plan.

The Presentation Plan


If you take a working plan, with its low stress on cosmetics and impression, and twist the knob
to boost the amount of attention paid to its looks, you'll wind up with a presentation plan. This
plan is suitable for showing to bankers, investors and others outside the company.

The Electronic Plan


The majority of business plans are composed on a computer of some kind, then printed out
and presented in hard copy. But more and more business information that once was
transferred between parties only on paper is now sent electronically. So, you may find it
appropriate to have an electronic version of your plan available. . The Electronic Plan.
The majority of business plans are composed on a computer of some kind, then printed out
and presented in hard copy. But more and more business information that once was
transferred between parties only on paper is now sent electronically. So, you may find it
appropriate to have an electronic version of your plan available.

What Makes a Good Business Plan?
 Significance
 Identification
 Features
 Function
 Considerations

What can a business plan do for you?
It can:
 Help highlight aspects of the business that need special consideration
 Help identify your core competencies (what you can do best) and weaknesses
 Help identify weaknesses and threats to the business
 Open your eyes to new opportunities
 Help you understand your competitors
 Help you plan your operational setup better
 Help you use your financial resources more efficiently and ultimately more
profitably
 Assist your management capabilities in relation to specific tasks and functions
as well as bring awareness to human resources and capacity needs

Why do you need a business plan?
 If you are starting a new project or venture
 If you are looking for a business partner
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 If you require finance, government or EU grants and incentives


 To manage your business better
 To measure actual performance compared to what was planned
Competitive Analysis Templates
1. Determine who your competitors are.
2. Determine what products your competitors offer.
3. Research your competitors’ sales tactics and results.
4. Take a look at your competitors' pricing, as well as any perks they offer.
5. Ensure you're meeting competitive shipping costs.
6. Analyze how your competitors market their products.
7. Take note of your competition's content strategy.
8. Learn what technology stack your competitors' use.
9. Analyze the level of engagement on your competitor's content.
10. Observe how they promote their marketing content.
11. Look at their social media presence, strategies, and go-to platforms
12. Perform a SWOT Analysis to learn their strengths, weaknesses, opportunities,
and threats

Types of marketing strategies
1. Building Marketing Strategies:
 Market segmentation.
 Positioning of goods and services.
 Product line.
 Price.
 Physical distribution and outlets.
 Sales force.
 Service and advertising.
 Sales promotion.
 Research and development, and
 Market research.

Types of marketing strategies
2. Strategies of Customer and Producer Mix under Competition:
 Scanning of the environment.
 Identifying relevant economic inevitable and rigid factors.
 Identifying the key trends of major competing brands.
 Political, economic, socio-cultural and technological factors affecting the
product market.
 Conduct an activity cost analysis for the upstream and downstream
linkages with the company.
 Identify the core competence of the company.
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 Look into the data bank of the company’s operational and human
resource variables.
 Mission and key strategies.
 Culture and leadership style.
 Competitive position.
 Adjustment and acquaintance with the Government policies.
 Determine levels of cost in the production and operations Price levels
and consumer segments.
 Strength of demand for the product.
 Opportunities for expansion of product-line and market.
 Prepare contingency plans of marketing.

Types of marketing strategies
3. Branding Strategies:
The company may have four basic options in brand strategy
a. line extension
b. brand extension
c. multi-brands
d. new brands
4. Relative Market Strategies:
 Market penetration strategy.
 New user strategy.
 Geographical expansion strategy.
5. Market Challenger Strategies:
 Attacks by the challenger company:
 Frontal or Head on attack.
 Flanking attack.
 Encirclement attack.
 Bypass attack.
Why is it that so many businesses fail while so few succeed?
 Lack of planning
 Leadership failure
 No differentiation
 Ignoring customer needs
 Inability to learn from failure
 Poor management
 Lack of capital
 Premature scaling
 Poor location
 Lack of profit
 Inadequate inventory management
 Poor financial management
 Lack of focus
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 Overexpansion
 Macroeconomic factors
 No succession plan
 Wrong partner

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