FIRSTPLUS BUSINESS PLAN REQUIREMENT
Introduction
A business plan is a written document that describes your business, business goals, reasons they are attainable, details strategies for achieve the goals, potential problems that may confront the business and ways to solve them, the organizational structure of your business (including titles and responsibilities), and finally, the amount of capital required to finance the venture and keep it going until it breaks even.
A business plan provides an opportunity to identify any weaknesses and reveal any hidden problems ahead of time. It is an analysis of how well the business will work; and its purpose is to minimize the risk associated with the new business venture and maximize the chances of success through research, planning and thinking. It analyzes the customers, competition, the market, the business strategic situation (strength, weakness, opportunities and threats), financials (Assets, Capital, Liabilities, expenses, Income and cash flow), management and staffing needs, manufacturing process, etc. It focuses on clarifying the goals and objectives of the business venture. Planning, however, may not guarantee success in business and cannot make a bad business idea feasible. However, a business plan must be realistic and based on valid assumptions.
A business plan focuses on four major areas:
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Organizational issues
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Market issues
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Technical issue
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Financial issues
Requirements from clients
Presented below is a list of the basic requirements for business plan from our clients. It is necessary to note that most of the items below is required if the company/business is already in existence. However, if there is any item listed below that the clients do not have, just let us know.
a.Industry of operation
b.Type of business (franchise, self-owner etc.)
c. Business description:
d. Business details: Name, address, and contact person
Ownership structure and financial contribution (if there is ownership expansion)
Incorporation details: type and year of incorporation, date of starting business and so on.
Management team: List of key management team members, designation, role, business experience, qualification, knowledge and skills. This may include succession plan if there is any.
Organizational structure and number of employees:
Three years Audited account if available
Other issues like insurance policy, staffing policy, the risks in the business and so on.
e, Business Operations
Purpose of business- present or proposed future business
Briefly explain the current business concept or operations or activities and proposed future business activities, perhaps the need it satisfies or gaps in the market.
Describe the products and services you currently manufactured or sold also proposed products.
The places (regions/states/town) your products are being sold or will be sold.
If possible projected sales.
f. Business environment: Suppliers, Customers and competition
List of potential Suppliers
List of future suppliers
List of potential customers
List of targeted customers
List of potential competitors and market share, threats that exist from competitors and your business competitive advantage. (It may be necessary to group them into sectors or some kind of classification)
f. Manufacturing –Production
This section is for businesses that are into manufacturing of goods.
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Briefly description of the production or manufacturing process.
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Specify the production capacity of each product.
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Description of the major equipment being used in the manufacturing process.
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Cost of production
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Cost of raw materials
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Marginal cost of production
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Types of inventory: average value of raw materials, work-in-progress, finished goods and so on