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PRINCIPLES OF ENTREPRENEURSHIP
(ENT530)
OVERVIEW
A business plan venture is a document that details out what a business wants to accomplish with
its new product or services. It is a detailed road map used to convert ideas and visions int o a real
and functioning product or services that is profitable and viable for the business to market.
INSTRUCTIONS
1. This is a group project and the students are required to form groups comprising of 5
MEMBERS ONLY.
2. Each group needs to choose and write one viable business idea (product or service).
3. The group needs to write and present final report of the business plan using the given
format.
4. Use Times New Roman 12 or Arial 11 with 1.5 spacing for written business plan report.
5. The report must be submitted on or before ______________. Failure to do so will
jeopardize the student’s grade for this subject.
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
1. COVER PAGE
Faculty :
Program :
Program Code :
Course :
Course Code :
Semester :
Group Name :
Group Members :
Submitted to
Lecturer’s name……
Submission Date
JUNE 2018
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
2. TABLE OF CONTENTS
Page Number
Contents
1. Executive Summary
2. Company Profile
4. Description of Venture
6. Marketing Plan
7. Organization Plan
8. Financial Plan
9. Appendices:
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
Before you begin writing within this section make sure that you have done some research. Business
plan research helps you make informed decisions and create a successful direction for your business
plan.
1. EXECUTIVE SUMMARY
The executive summary is usually short and concise. The summary articulates what the
opportunity conditions are and why they exist, who will execute the opportunity and why they
are capable of doing so, how the company will gain entry and market penetration; it answers
the questions: “for what reason does this venture exist and for whom?”
Essentially, the executive summary needs to reflect the criteria presented in the Business
Opportunity Analysis Exercises. This is your chance to clearly articulate how your business is
durable and timely, and how it will create or add value to the end user. This summary is
usually prepared after the other sections of the business plan are completed.
2. COMPANY PROFILE
o Convey to the investor that the company and product truly fill an unmet need in the
marketplace.
o The characteristics that set the product and company apart from the competition need
to be identified (competitive advantage).
o The industry and trends in which the company operates should be identified.
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
Structure
Size
Industry trends
Market trends
Competitive environment
New entrants
Key technologies
Products/Service:
o Differences between what is currently on the market and what you will offer
Benefits of product
Unique features
Highlight any aspects of your product that may be protected by current IP or patent
law.
Provide evidence of how your offerings are different from the competition.
Time frame
Resource requirements
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
Technological advantage:
Costs
Time frame
Resource requirements
4. DESCRIPTION OF VENTURE
o Opportunity:
Briefly describe the general nature of your company. From this section the investor
must be convinced of the potential success of the business.
Describe the major events that will take place in the short and long-term
future (i.e. product launch, acquisition of first customer, milestones for
customer base growth or sales growth).
Milestones:
Production capability
Customer acquisition
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
Breakeven
Funding
Location(s)
Plant(s)
Office space(s)
Timing
Special tooling
Timing
Cost
o Operating cycle:
Manufacturing processes
Make-or-buy policy
6. MARKETING PLAN
Information in this section needs to support the assertion that the venture can capture a
substantial market in growing industry and stand up to competition. Because of the
importance of market analysis and the critical dependence of other parts of the blueprint on
this information, you are advised to prepare this section first.
o Customers
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
Discuss who the customers for the product or service are or will be. Potential
customers need to be classified by relatively homogeneous groups having
common, identifiable characteristics (e.g., by major market segment).
Show who and where the major purchasers for the product or service are in the
market segment. Include national regions and foreign countries, as appropriate.
Indicate whether customers are easily reached and receptive, how customers buy
(wholesale, through manufacturers’ representative, etc.).
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
o Marketing Strategy
Overall marketing strategy. Describe the specific marketing philosophy and
strategy of the company, given the value chain and channel of distribution in the
target market. Include, for example, a discussion of the types of customer groups
that you are targeting for initial intensive selling effort those that you are targeting
for later selling efforts.
Pricing. Discuss the pricing strategy, including the prices to be charged for your
product and service, and compare your pricing policy with those of your major
competitors.
Sales tactics. Describe the method (e.g., own sales force, sales representatives,
direct mail, or distributors) that will be used to make sales and distribute the
product or service.
Service and warranty policy. If your company will offer product that will require
service, warranties, or training, indicate the importance of these to customers’
purchasing decisions and discuss your method of handling service problems; also,
highlight the kind and term of any warranties to be offered, whether service will be
handled by company service people, agencies, dealers and distributors, or return
to the factory.
Advertising and promotion. Describe the approaches the company will use to bring
its product or service to the attention of prospective buyers.
Distribution. Describe the methods and channels of distribution you will employ.
5. ORGANIZATION PLAN
This section includes a description of the function that will need to be filled, a description of
the key management personnel and their primary duties, an outline of the organisational
structure for the venture, a description of the board of directors, a description of the
ownership position of any other investors, and so forth. You need to present indications of
commitment, such as the willingness of team members to initially accept modest salaries,
and of the existence of the proper balance of technical, managerial, and business skills and
experience in doing what is proposed.
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
o Organization
Present the key management roles in the company and the individuals who will fill
each position.
If it is not possible to fill each executive role with a full-time person without adding
excessive overhead, indicate how these functions will be performed (e.g., using
part-time specialists or consultants to perform some functions), who will perform
them, and when they will be replaced by a full-time staff members.
Describe the exact duties and responsibilities of each of the key members of the
management team.
Names & Positions Monthly salary Share of ownership Amount of Equity Invested
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
7. FINANCIAL PLAN
Sound financial management is one of the best ways for the business venture to remain
profitable and solvent. In this section think through some of the general issues you will have
to address in your formal business plan.
To effectively manage your venture finances, plan a sound, realistic budget by determining
the actual amount of money needed to start your venture (start-up costs) and the amount
needed to keep it open (working capital or operating costs).
o Start-up Cost
Estimate the costs incurred in conjunction with one-time activities that the venture
undertakes when it opens a new facility, introduces a new product or service,
conducts business in a new territory or with a new class of customer or beneficiary,
initiates a new process in an existing facility or commences some new operation after
considerable research and discussion.
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
o Working Capital
Working capital represents the amount of initial expenditure required to finance the
daily operation until the business gets its first sale. The amount of working capital is
therefore dependent upon the period until the firm can generate enough sales to
cover its short-term expenditure.
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
Total start-up capital incorporates both start-up cost and working capital needed to
start a project. The most common source of finance for new venture is the
entrepreneur’s own equity contribution. The equity contribution can be in the form of
cash or assets. The next most common source of finance is term loan. This is a form
of long term financing offered by most commercial banks. The term loan can be used
to finance fixed assets as well as working capital requirements. The interest rate and
the loan period depend on the current interest rate and the amount of loan required
respectively.
A cash flow pro-forma statement refers to the projected statement of cash inflow and
outflow throughout the planned period. Under normal circumstances, the pro forma
cash flow statement is prepared between three to five consecutive years. However,
longer periods are sometimes needed depending upon the projects undertaken. The
pro forma cash flow statement must be able to show the following information:
Cash inflows – the projected amount of cash flowing into the company.
Cash outflows – the projected amount of cash flowing out of the company.
Cash deficit or surplus – the difference between cash inflows and cash outflows.
Cash position – the beginning and ending cash balances for a particular period.
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
o Income Statement
The next step in developing a financial plan is to prepare the pro forma income
statement which shows the expected profit or loss for the planned period, usually for
three to five consecutive years. Generally, the pro forma income statement consists of
the following elements:
Cost of goods manufactured (also known as production costs) refers to the total
production cost involved in producing the finished goods. It includes all costs such as
direct materials, direct labour, manufacturing overheads and the differential value
between the beginning and ending balances of the work-in-progress (if any). Gross
profit is the gross margin realised after deducting the cost of goods sold from sales. It
represents the amount of profit before deducting other operating expenditure. Net
profit (or net loss) is defined as the difference between gross profit and operating
expenses for the planned period.
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
o Balance Sheet
While the pro forma income statement shows the financial performance of the
company for the planned period, the pro forma balance sheet shows the financial
position of the company at a specific point in time in terms of assets owned and how
those assets are financed. The pro forma balance sheet is prepared for a period
between three to five years.
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
8. PROJECT MILESTONES
Activities Deadlines
ENT530 : RN 2017
BUSINESS PLAN (ENT530) : GUIDELINES & TEMPLATE
9. CONCLUSIONS
End with a brief conclusion and the next step of action to be taken. The conclusion can
include the entrepreneur’s decision on how to proceed next. It can be a statement providing
viability of the proposal business and seeking grants or loan approval.
10. APPENDICES
Attach any material that does nots easily fit into the body of a business plan such as:
Resumes of the top management team members.
Photos or diagrams of product or prototype
All charts, financials, visuals, and other related items can be placed here and referenced
in the report.
Market research projections.
Projected financial statements: cash flow, profit & loss, and balance sheets
Source of market data
Capital equipment and facility requirements
ENT530 : RN 2017