The document discusses the importance of business planning and outlines the key components of an effective business plan. It notes that while plans may be useless, planning is indispensable. The document then describes the common sections of a business plan, including an executive summary, company overview, SWOT analysis, market analysis, marketing strategy, operations, financial plan, and competition. It emphasizes that an effective business plan tells a story and convinces the reader of the viability of the business.

1. BUSINESS PLANS
IN DETAIL
KARABO NLDOVU
201212565
UNIVERSITY OF JOHANNESBURG

2. BUSINESS PLANNING
"IN PREPARING FOR BATTLE I HAVE ALWAYS FOUND THAT PLANS
ARE USELESS, BUT PLANNING IS INDISPENSABLE."
-DWI HT EI
G
SEN WER
HO
“THOSE WHO FAIL TO PLAN, PLAN TO FAIL.”
-G EO RG E HEWELL

3. DEFINING A BUSINESS A PLAN
• A BUSINESS PLAN IS A FORMAL STATEMENT OF A SET
OF BUSINESS GOALS, THE REASONS THEY ARE BELIEVED
ATTAINABLE, AND THE PLAN FOR REACHING THOSE
GOALS. IT MAY ALSO CONTAIN BACKGROUND
INFORMATION ABOUT THE ORGANIZATION OR TEAM
ATTEMPTING TO REACH THOSE GOALS.

4. USES OF A BUSINESS PLAN
• EQUITY FUNDING
• BANK FINANCE
• ALLIANCES
• RECRUITMENT
• CLARIFY THE BUSINESS
• OTHERS

5. STEPS IN WRITING A BUSINESS
PLAN
• DEFINE PURPOSE
• COLLECT INFORMATION
• PUT IT DOWN
• THE ROUGH DRAFT.
• FINANCIAL ANALYSIS
• FINISHING
• REVIEW

6. BUSINESS PLAN CONTENT
• EXECUTIVE SUMMARY
• COMPANY OVERVIEW
• SWOT ANALYSIS
• MARKET ENVIRONMENT
• MARKETING AND SALES STRATEGY
• OPERATIONS
• FINANCIAL PLAN

8. YOUR BUSINESS PLAN WILL...
• DISCUSS A PARTICULAR MARKET OPPORTUNITY.
• EXAMINE THE MARKETS THAT YOU WILL COMPETE IN, AND EXPLAIN
WHO YOUR CUSTOMERS WILL BE.
• DESCRIBE THE PRODUCTS OR SERVICES THAT YOUR COMPANY
WILL PROVIDE.
• YOUR COMPETITION, AND HOW YOU WILL DEFEND AGAINST IT.
• THE OPERATION THAT YOU WILL PUT IN PLACE IN YOUR COMPANY.
• THE MANAGEMENT TEAM THAT WILL IMPLEMENT THE PLAN.
• THE SIZE AND PROFITABILITY OF YOUR COMPANY.

9. EXECUTIVE SUMMARY
• THE EXECUTIVE SUMMARY IS PROBABLY THE MOST
IMPORTANT SECTION OF THE BUSINESS PLAN.
• IT IS BASICALLY THE WHOLE BUSINESS PLAN CONDENSED
INTO A FEW PAGES
• THE MAIN OBJECTIVE OF THE EXECUTIVE SUMMARY IS TO
ENTICE THE READER TO GO THROUGH THE ENTIRE PLAN.

10. COMPANY OVERVIEW
• BRIEF COMPANY INTRODUCTION
• MISSION STATEMENT
• LOCATION, SIZE, HISTORY
• MARKET AND PRODUCTS
• OVERVIEW OF COMPANY CAPABILITIES
• OBJECTIVES
HIGHLIGHTS THE MOST IMPORTANT POINTS OF YOUR
BUSINESS PLAN
IT IS NOT AN INTRODUCTION TO THE PLAN

11. SWOT ANALYSIS

13. MARKET ENVIRONMENT
• ALL FACTORS OF THE MARKET THAT ARE OUTSIDE YOUR
DIRECT CONTROL:
• MARKET STRUCTURE
• MARKET TRENDS
• COMPETITION
• OPPORTUNITIES/THREATS

15. MAKERT ANALYSIS

Market Definition
– Primary Market
– Secondary Markets

Market Size and Trends
– Current total revenues
– Predicted annual growth
rate

16. MARKETING AND SALES
STRATEGY
• PRODUCTS OR SERVICES OFFERED.
• FOLLOW-ON PRODUCTS.
• INTELLECTUAL PROPERTY OR OTHER DEFENDABLE
POSITIONS.
• MARKET RESEARCH.
• MARKETING PLAN.
•
•
•
•
•
BRAND STRATEGY.
DISTRIBUTION STRATEGY.
PRODUCT STRATEGY.
PRICING STRATEGY.
PROMOTION.

18. OPERATIONS
• PRACTICAL DETAILS REQUIRED TO MEET THE PLAN.
• FACILITIES.
• MANUFACTURING OR OUT-SOURCING.
• PERSONNEL.
• VARIES WIDELY DEPENDING ON TYPE OF BUSINESS.
• RAW MATERIAL STRATEGY

19. CONTINUES…
• PRODUCTION PLANNING
• SUBCONTRACTORS
• QUALITY CONTROL
• BUDGET / OPERATING EXPENSES
• HR POLICY
• TECHNOLOGY

21. FINANCIAL PLAN
• THREE KEY REPORTS, IN A FIVE-YEAR PLAN:
• INCOME STATEMENT.
• BALANCE SHEET.
• STATEMENT OF CASH FLOWS.

22. FINANCIAL CONTINUES
• FUNDS SOUGHT
• PROJECTED FINANCIAL STATEMENTS
• COSTING DETAILS
• BREAK EVEN AND PAYBACK ANALYSIS

24. COMPETITORS
• DIRECT COMPETITORS
• WHO ARE THEY?
• SIZE AND PRODUCT BREADTH
• REVENUES AND PROFITABILITY
• STRENGTHS AND WEAKNESSES
• MARKET SHARES
• INDIRECT COMPETITORS
• INDIRECT COMPETITORS IN THE BUSINESS WORLD ARE
THOSE BUSINESSES THAT DON'T NECESSARILY SELL THE
SAME PRODUCTS BUT OFFER DIFFERENT ALTERNATIVES TO
SATISFYING THE SAME CUSTOMER NEED.

25. CUSTOMERS
• CUSTOMER CHARACTERISTICS
• WHO ARE THEY?
• WHY DO THEY BUY?
• NEED SATISFIED BY THE PRODUCT/SERVICE
• HOW IS THE NEED CURRENTLY FILLED?
• WHAT ARE THE ALTERNATIVES?
• WHO MAKES THE DECISION TO BUY?
• HOW FREQUENTLY DO THEY PURCHASE?

26. FORMAT
SOME TIPS:
• DON’T WASTE TIME ON LONG INTRODUCTIONS.
• BE PASSIONATE, CONVINCING, INTERESTING.
• TELL A STORY.

28. NOT ANYMORE, SLIDESHARE IS
HERE TO HELP YOU

29. REFERENCE
• Elkhararly, M. (2009). Writing a successful business plan.
http://www.slideshare.net/melkharashy/business-plan-4680143?qid=d7763f5b849d-4d66-9f3c-2f4dfd9c1488&v=default&b=&from_search=8 : accessed 09
march 2014
• Ritchie, C. (2009). Financial Business. http://www.slideshare.net/IBS1/financialmanagement-business-plans-business-budgets?qid=92af04a9-7015-40aa-87560d50adbf6e6b&v=qf1&b=&from_search=9 : accessed 09 march 2014