Business Plan

Dr Noor Muhammad
noormuhammad@giki.edu.pk

Learning Outcomes
1. Understand the importance of planning
2. Be aware of the contents of a business plan
3. The tools for delivering and managing the
planning process

What is a Business Plan ?

1.

Document outlining your business concept

2.

Blue print for running a business:

Where are we now?

Where are we going?
How will we get there?
When will we arrive?

3. Management tool which can help prevent costly mistakes

4. A selling document?

Finance can be a Key Objective

1. Lender needs to be convinced of being repaid
2. Demonstrate there is a good market

SELL THE IDEA AND TEAM

What Does Investors Look For?

1. Market opportunity and idea
2. Evidence of market research
3. Team, track record, strengths and gaps
4. Convincing case for profitability and high returns

What Does A Business Plan Cover?

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Every aspect of a business - not just financial

Economic factors
Environmental factors
Marketplace
Customers
Suppliers
Competitors
Production processes
Management and employees
Training etc

Why Prepare a Business Plan?

Those who fail to plan, plan to fail.

George Hewell

Why Prepare a Business Plan?

1.

Increases chance of success

2.

Guides the management team

3.

Improves communication (both externally and

internally)

4.

Establishes benchmarks to monitor and measure

actual performance

How Does Planning Increases Success?

1. Identifying strengths, weaknesses, opportunities and
threats
2. Quantifying and reducing business risks

3. Understanding internal barriers

4. Establishing priorities

5. Anticipating and avoiding problems

6. Encouraging realism

Common Reasons Given for Not Planning

1. Time
2. Ignorance
3. Over-confidence
4. Resources
Human
Financial

What You Must Include?

1. What is the product or service
2. What is the market
By secondary and primary research
3. The management team
4. How the product will reach the market
5. The costs involved

Typical Contents
1. Executive summary
2. Company analysis
3. Industry analysis
4. Analysis of customers competition
5. Marketing plan
6. Product design / development plans
7. Operations Plan
8. Management Team
9. Financial Plan
10. Risks and assumptions
11. Appendices

Executive Summary
1. Preferably one page

2. Purpose of the plan

3. Brief description of the business and the marketplace

4. A statement of how much finance is required

5. Summary of financial highlights

6. Calibre of management

Company History
1.

Length of time in operation and progress to date

2.

Ownership structure

3.

Legal
Capital, equity, loans, options
Involvement of shareholders

Location, contact details

Product/Service
1. Detailed description
2. Why it is unique
3. What benefits it offers / potential applications
4. Details of supplier
5. Status

Market Analysis
1. Description of sector

2. Current size, historic and projected growth, trends

3. Segmentation
4. Main competitors

Identity, market share, strengths, weaknesses, potential new

entrants

6. Include statistical information

7. Methods

Marketing Strategy
1. Marketing mix
2. Market positioning - quality, price, customer service, brand,
image, etc
3. Pricing policy

Cost-based, demand based, discounts, warranties

4. Field / product support

5. Advertising and promotion methods, costs, frequencies, web
based, etc
6. Distribution channels

Operations Management
1. Premises
Location, size, facilities, cost, leasehold v freehold,
planning and legal issues, alterations, growth plans
2. Staffing and labour, sub contractors

3. Supply base
4. Plant and machinery

Pitfalls
1. Excessive detail
2. Inappropriate emphasis
3. Lack of clarity
4. Lack of commitment

Thank You

SEMESTER PROJECT: GROUP PROJECT

Project Theme: New Venture
Practical project will be appreciated, however, theoretical
projects must have valid points and should be supported
with solid evidence .
Initial Project Report not more than one page: Submission
deadline: 14/04/2015.
The project proposal report will be evaluated within one
week and groups will be invited individually for further
discussion and approval with tutor.

SEMESTER GROUP PROJECT

Project topics:
1. Idea and Opportunity
2. Market Research
3. Business Model
4. Business Plan
5. Raising Finance
6. Promoting the Business
7. Growing the Business

SEMESTER GROUP PROJECT

Final Project Submission deadline: 15/05/2015
Presentation date: 25/05/2015
Words Limit: 8000 -10000 excluding tables, figures and
references
Value: 20%