The document provides an overview of training on building a business plan, with a focus on social business plans. It discusses the objectives of the training, which are to understand the differences between business plans, project proposals, and social business plans. It also reviews how to understand the basic parts of a business plan step-by-step. The document then outlines the key sections of a business plan, including the business description, market analysis, operations plan, financial management, and appendix. It emphasizes that the financial plan is the primary evaluating tool, and stresses the importance of making conservative financial projections with defendable assumptions.
2. Buildingabusinessplan
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Objectives of the training:
▪Understand the differences between a
business plan and project proposal
▪Understand the differences between a business
plan and a social business plan
▪Learn/ Understand the basic parts of a business
plan step by step
▪Why is the business plan an important document
for different stakeholders
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What is a business plan?
A detailed presentation about your
organization’s (scaling) plans that
demonstrates how it will succeed in
financial terms AND the social impact
that it will create.
4. A Road Map
Business plans chart
the course to realize the
organization’s vision.
2 new senior
Staff hired
To
Vision
Social
Entrepreneur
Acquisition up
20%
25
Links
between
business &
citizen’s sector
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Soci
5. Why do you Need a Business Plan
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• A planning framework
• Checks business feasibility
• Is a managerial tool for
resource alocation and
decision making
• Helps the manager to think:
oIn which stage is the
business actually?
oWhat is it aimining? What
are the future plans
• Evidence of the nonprofit’s ability
to conceive and execute scale
• Articulates financial needs and
uses of funds
• Shows the business potential tp
produce and grow
• Shows the entrepreneurs level of
knowledge about the business
• Shows a good return on
investment
• Communications Tool
For the EntrepreneurFor investors/Donors
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Business Plan Purposes
• Articulates vision and mission
• Sets goals and objectives
• Defines strategies and specific actions to achieve
objectives
• Measures results
• Communicates ideas, plans & social value
• Projects necessary resources, expenses, & revenues
Provides a basis for SOUND decision-making
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Business Plan vs Project
• Doesn’t change during the
project life
• Process driven
• Donor driven
• It’s a closed document –
within a time limit
• BP is a flexible document that
changes according to market
forces
• Is result driven
• Market driven
• Is a work map
• It’s an open document
ProjectBusiness Plan
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General rules
✓Be clear and attractive
• Use bullet points
• Balance creativity while still getting your point across
• Use short paragraphs (1-3 sentences per paragraph)
• Use the jargon of the sector in which the business
operates
• Write with objectivity
✓Fokus more on near future (1-2 years), less on later years
(valid especially for small businesses and startups)
9. Anatomy of a Business Plan
Market
Research
Human
Resource
Plan
Concept & Objectives
Vision
Mission
Operations
Plan
Marketing
Plan
Financial
Plan
13. CoverSheet
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✓Identity Information
• Your name and the business name
• Business Logo
• Adress
• Phone Number
• E-mail
✓Submission Date
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ExecutiveSummary
▪Define problem, solution, business model, and why
your solution is better
▪Most important part of your plan and usually written
last
▪Grab readers attention
▪No more than 2 pages!
▪Write it last!
15. Most important
questions an
investor asksI
., Executive Summary
Idea description
• What is your business idea? Inwhat way does it
fulfill the criterion of uniqueness?
• Who are your target customers?
• What is the value for those customers?
• What market volume and growth rates do you
forecast?
• What competitive environment do you face?
• What additional stages of development are
needed?
• How much investment is necessary (estimated)?
• What long-term goals have you set?
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Business Description
✓Business Concept
• Shortly describes the business
model
• Mission Statement, Objectives
• Legal structure of the business
• General strategy plan
• The founders/Entrepreneurs
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Business Description
✓Social or/and environmental impact
• The social or envirnomental problem that your
product/service is trying to solve
• Target social beneficiaries: characteristics,
number of beneficiaries (persons or families),
geografic distribution
• How is the social business solving the social
problem
• What type of benefits is your social business
providing to these target groups.
• Social KPIs
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Business Description
✓Detailed description of the product / service.
• How it is made / delivered.
• The experience you have with the process.
• What equipment the process needs (should tie
in with the financial projections later).
• How you will assure quality.
• Why should your customers buy it
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Market Analysis
✓Industry/Sector Analysis:
• Market background
• Industry-wide information, trends
• Local industry information, trends
• Market capture and expectations
• Social, economic, legal, technological issues
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Market Analysis
✓Target Market
• Customer definition, consistency
• Individual customer demographics
–Location, age, gender, occupation
–Ethnic group, lifestyle, education, income
• Business customer demographics
–Sector, location, structure
–Sales level, distribution classification, number of
employees
• Why would your target clients buy your product?
• How much would they pay?
• What is the size of your market?
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Market Analysis
✓Competitors
• Everyone has competitors! - Make sure that your readers know
that you understand the industry and external environment
• Provide a complete view of the competitive landscape
• Direct and indirect competitors
• Current and anticipated competitors
• Trends in the competitive companies
• Why your company is superior?
• SWOT Analysis (strengths, weaknesses, opportunities,
threats)
23. Marketing and sales
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• Define your primary, secondary, and other audiences
• Marketing mix: 4 Ps
• Product
• Promotion
• Price
• Place
• Marketing Strategies
• Distribution Channels
• How will you find, sell, and retain customers?
• Advertising and promotion budget
• Identify your leverage points
24. Operations
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✓Activities/Processes and resources
• What are the main acitivities of your business
• What are the physical resources, space, human
resources and financial resources needed?
✓Logistics
• plant location, facilities needed, space requirements,
capital equipment needed, labor requirements
• How will you get your equipments (rent, lease, buy)
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HumanResourcePlan
• Management team
• Roles & responsibilities of various actors
• Staffing and recruitment plan
• Necessary know-how
• Incentives and reward systems
• Governance
• Capacity building plan
• Staff, institution, target group
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Financial Management
✓ How much money do i
need?
Determine start up costs and
estimate monthly operating
costs to determine your
working capital needs
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Financial Plan
THE PRIMARY EVALUATING TOOL
◦ Support all information
◦ Make conservative projections
• Start-up Budget: amount needed to
open
• Operating Budget: ongoing
expenses once open
• Sources and Uses Sheet
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Financial Projections
✓Cash Flow Projections
✓Income Projections
✓Balance Sheets
✓Assumptions
• Project for at least 3 years, possibly 5.
• Your numbers need to be “defendable.”
• Make sure that your projections stick with what
you’ve said earlier in your plan.
• Explain your underlying assumptions in terms that
the reader can understand, like # of customers,
market share, hits on your web page, etc
29. Risk Analysis
• Build capacity to make accurate projections
• Add in buffer for expenses
• Use “what if…” scenarios
• Sensitivity analysis for major decisions
◦ Major expense categories
• Test business plan assumptions
• Objectivity
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31. Current Status
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✓Describe your major milestones and tasks
• Technology
• Fundraising
• Customer Development, etc.
✓Where are you now?
✓Brag about your accomplishments
✓Talk about the next steps
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Proposed Offering
• Desired financing
• Offering
• Capitalization
• Use of funds
• Investor’s return
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Apendix
✓Includes suplemental information about the business:
• Manager’s CV
• Financial Statements
• Personal Income Statement
• Copies of legal documents
• Reference Letters
• Every document that might add value to the business
plan.
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Behind a success there is always a good plan…
Plan
Fact
Proces
