UNIT 5

BUSINESS
PROPOSAL
GUIDELINES

BUSINESS PROPOSAL
GUIDELINES
Leaning Outcome:

Understand the importance of business proposal

Know the content of business proposal

Able to prepare a simple business proposal

Plan
Benefits

Summary

Unit 5
Business
Proposal
Guidelines

Content

Purpose
Type

BUSINESS PLAN

Business Plan
A business plan is a written narrative, typically 25 - 35
pages long, that describes what a new business plans
to accomplish & how to accomplish.

For most new ventures, the business plan is a dualpurpose document used both inside and outside the firm.
Inside the firm, the plan helps the company develop a
road map to follow in executing its strategies and plans.
Outside the firm, it introduces potential investors and
other stakeholders to the business opportunity the firm is
pursuing and how it plans to pursue it.

BENEFITS OF A BUSINESS PLAN (1

OF 2)

BENEFITS OF THE BUSINESS PLAN

(2 OF 2)

WHO READS THE BUSINESS PLAN? AND

WHAT ARE THEY LOOKING FOR?
Who?

What are they looking for?

GUIDELINES FOR WRITING A BUSINESS

PLAN
Structure

of the Business Plan

To

make the best impression, a business plan should

follow a conventional structure.

Although

some entrepreneurs want to demonstrate

creativity in everything they do, departing from the
basic structure of the conventional business plan
format is usually a mistake.

Typically,

investors are very busy people and want a

plan where they can easily find critical information.
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GUIDELINES FOR WRITING A BUSINESS

PLAN

Structure of the Business Plan cont

Software

Packages

There are many software packages available that employ an interactive, menudriven approach to assist in the writing of a business plan.
Some of these programs are very helpful. However, entrepreneurs should avoid a
boilerplate plan that looks as though it came from a canned source.

Sense

of Excitement

Along with facts and figures, a business plan needs to project a sense of
anticipation and excitement about the possibilities that surround a new venture.

GUIDELINES FOR WRITING A BUSINESS

PLAN
Content

of the Business Plan

The

business plan should give clear and concise

information on all the important aspects of the
proposed venture.

It

must be long enough to provide sufficient

information yet short enough to maintain reader
interest.

For

most plans, 25 to 35 pages is sufficient.

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GUIDELINES FOR WRITING A BUSINESS

PLAN
There are 3 Types of Business Plans

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OUTLINE OF BUSINESS PLAN

A

suggested outline of a business plan is shown on

the next slide.

Some

business plans do not include all the

elements introduced in the sample plan; we
included them here for the purpose of
completeness.

Each

entrepreneur must decide which elements to

include in his or her plan.
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OUTLINE OF BUSINESS PLAN

BUSINESS PLAN
1. Cover Page and Table of Contents
The cover page should include:
name, logo, address and phone number of the
company, the date, and name & contact
information of the entrepreneur.

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BUSINESS PLAN
2. The Executive Summary
The executive summary is a short overview of the
entire business plan;
- It provides a busy reader with everything that needs
to be known about the new ventures distinctive
nature.
- Normally 2-3 pages.
- Drafts should be written in order to expose any
loopholes or weaknesses of the proposal.
In many instances, an investor will first ask for a copy
of the executive summary and request a copy of the
full business plan only if the executive summary is
sufficiently convincing.
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BUSINESS PLAN
3. The Business
The most effective way to introduce the business is to describe:
- the opportunity the entrepreneur has identified that is, the
problem to solve or the needs to be filledand then describe
how the business plans to address the issue.
a brief history of the company, along with the companys vision
/ mission statement & objectives.
the companys competitive advantage.
the business model.
how the firm is legally structured/ type of business (refer to
previous chapter) e.g. sole trader / partnership / Pvt. Lmt.
ownership
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BUSINESS PLAN
4. Management Plan
One of the most important things investors want to see
when reviewing the viability of new ventures is the
strength of its management team.
The material in this section should include a brief
summary of the qualifications of each member of the
management team, e.g. relevant employment and
professional experiences, significant accomplishments,
and educational background. (not resume!!)

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EXPLORING EACH SECTION OF THE

PLAN
4. Management Plan cont..
This section should also describe Company Structure and
Responsibility :
the

organisational structure of the new venture.

(which including the reporting relationships among the
management team.)

Authority

and responsibility. (The roles / functions of each

management team member.)

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BUSINESS PLAN
5. Products / Services / Process
This section discusses the uniqueness of the main
products/service/process of the business venture.
Entrepreneur should emphasis the uniqueness of
product/service/process of this business, e.g. the benefits
- may included the intellectual property the firm owns, e.g.
patents, trademarks & copyrights.

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BUSINESS PLAN
6. Industry & Market Analyses
This section discusses:
a. the major trends in the industry along with important
characteristics of the industry, such as its size,
attractiveness, and profit potential.
b. the competition faced in the market, e.g. competitors and
substitute products, & how the firm will diminish or
sidestep the competitive forces that suppress its firms
profitability.
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BUSINESS PLAN
6. Industry & Market Analyses

cont.

This section discusses:

c. Market analysis should be discussed next by including
information about the market/customers e.g. market size,
market segment and preference/demand of potential
customers.
The information is collected by doing market research.

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BUSINESS PLAN
7. Marketing Plan
This marketing plan should provide details about the businesss
planning to market products or services, along with a
description of how it will compete in that market.
A description of the target market (consumer) must be
included here.
Entrepreneur should make sure that the product strategy,
pricing strategy, channels of distribution, and promotional
strategy (4P) are in sync with one another and make sense. (A
synchronise plan)
After

reading this section of the plan, an investor should be

confident that the firms overall approach to achieve its target
market.
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BUSINESS PLAN
8. Operations Plan
This

section of the plan deals with the day-to-day operations of the

company.

An

overview of the manufacturing plan (or service delivery plan)

should be followed by a description of the network of suppliers,
that will be necessary to build the product or produce the service
the firm will sell.
Details of production method & process, workforce planning,
stock management, raw material used, etc. should be included.
Any

risks or regulations pertaining to the operations of the firm

should be disclosed, such as non-routine regulations regarding
waste disposal and workers safety.
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BUSINESS PLAN
9. Financial Plan
The

financial section of the plan must demonstrate the financial

viability of the business. A careful reader of the plan will
scrutinize this section.
The financial plan should begin with an explanation of the
funding that will be needed by the business (sources of funding)
during the next 3-5 years along with an explanation of how the
funds will be used.
The

next portion of this section includes financial projections

which are intended to further demonstrate the financial viability
of the business.
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BUSINESS PLAN
9. Financial Plan

cont.

The

financial projections should include three to five years of

pro forma income statements, balance sheets, and
statements of cash flows.

It

is important to remember that the business plan should be

based on realistic projections (sales forecasts)

If it is not and the company gets funding or financing, there will

most certainly be a day of reckoning. Investors and bankers hold
entrepreneurs accountable for the numbers in their projections.

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BUSINESS PLAN
10. Assessments of Risks & Solutions
Although

a variety of potential critical risks may exist, a

business should tailor this section to depict its truly critical
risks.
Business should also included the contingency plan/plan B to
taker the risks that likely to incure.

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BUSINESS PLAN
11. Conclusion
Entrepreneurs

conclusion on the expected successfulness of

this proposal.

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BUSINESS PLAN
12. Appendix
Any

material that does not easily fit into the body of a business
plan should appear in an appendix. Examples of materials that
might appear in the appendix include:
Resumes of the top management team members, photos or
diagrams of product or product prototypes, certain financial
data, and market research projections.

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Business Plan
Making

a Presentation to Investors

If

the business plan successfully elicits the interest of

potential investors, the next step is to meet with the
investors and present the plan in person.

The

first meeting with an investor is generally very

short, about one hour. The investor will typically ask
the firm to make a 20-30 minutes presentation using
PowerPoint slides and use the rest of the time to
respond to questions.

If

the investor is impressed and wants to learn more

about the venture, the firm will be asked to prepare
for a second meeting.
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Business Plan
Tips

on Making an Oral Presentation to Investors

Prepare

a set of PowerPoint slides that will fill the time slot

permitted. The slides should be sharp and not cluttered with
material.

The

presentation should be smooth and well rehearsed.

The

first rule in making an oral presentation is to follow

instructions.

If an investor tells an entrepreneur that he or she has one hour and that
the hour will consist of a 30-minute presentation and a 30-minute
question-and-answer period, the presentation shouldnt last more than 30
minutes.
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Business Plan Presentation

PowerPoint Slides to be Included in an Presentation
1.
2.
3.
4.
5.
6.
7.
8.
9.

Title
Problem / Opportunity
Solution (products / services)
Business (vision/objectives)
Management team (organisational structure)
Industry and target market (who are the potential customers?)
Marketing plan
Operational plan
Financial projections (Current status, amount of money
requested, and projected use of funds)
10. Risk Management
11. Conclusion
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Thank you

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