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BUSINESS PLAN
Disclaimer
Definition of terms
Assumptions
TABLE OF CONTENTS
1. Executive Summary
2. Background (Overview)
3. Organizational and Management Structure
4. Operational Plan
5. Marketing Plan
6. Financing Structure
7. Internal Analysis
8. External Analysis
9. Risk Analysis.
10.

Financial projections (P&L, Cash flow & Balance sheet)

11.

Implementation plan

Disclaimer (include disclaimer for all the generic business plans

Remove all pictures but can only be used on cover page.
Definition of terms
-define all the scientific names, terms used on the business plan
Assumptions should include interest at market rate.-15%
1. Executive Summary
Brief of the business idea, capacity, and performance of the
business as per the financials, project total cost, contribution
factor, and interest rate (Market rate 15%).
2. Background Information
Define the problem that triggered this idea or concept
Acknowledge references addressing such by including statistics
substantiating the idea. Show the existence or need for the
product/service/market.
Business name
Nature of business
Date of incorporation
Business contacts (tel, fax, and email.
Brief Profiles of Share holders.
2.1 Project Concept: the project concept should clearly define the
intention and objectives of the project.
Clearly articulate the value preposition to easily state the
targeted customers.
Clearly indicate the benefits of the concept
-Project objectives- local production, export
-Clearly articulate the value proposition to the customers.
-Summarized history of major events since inception- e.g. started
as sole proprietorship, incorporation, merger/acquisition, change in
ownership to
Current status, etc.
2.2 Organizational strategy
-Mission, vision and objectives of the business, philosophy.

2. Organizational and Management Structure

A) Organogram
Organizational chart encompassing all the positions
B) Management structure
Name

Qualificati
ons

Ag
e

Nationa
lity

shareholdi
ng%

C) Key functions and responsibilities

Position
Numb Roles Qualification
er
s
Farm Assistant 3

Positi
on

Experie
nce

Experience

Monthly Salary
(BWP)
2000 each

D) Support Functions
Support functions-accounting and controls,
audit, IT,
Corporate Governance,
Training and employee welfare,
Quality Assurance
1. Operational Plan
a) Description of the operation of the business
Location: owned/rented/leased.
Source, cost, quality and availability of raw material supply and relations
with support industries/linkages
Source/suppliers of equipment, other technical support: Avoid
mentioning suppliers by names.
Description of production/manufacturing process
Plant size/layout in comparison with other known plants.
Reason for choice of technology: labour intensive/capital intensive.
Project location in relation to suppliers, markets, infrastructure and
manpower
Infrastructure/utilities availability (roads, power, telephone, water,
security, etc)

Comments on special technical complexities and need for know how and
special skills
Production plan
Processes
Production Capacity(How much are you currently producing, what is the
Production capacity)
Specify the licensing requirement per each project

Capacity
Production per day
Installed capacity
Current production
capacity
Optimum production
capacity

Annual production

4. Marketing Plan
A) Market
Market overview taking into consideration the current statistics
Description of the market for the product or service,
Benefits that the products/services meet.
Market segment targeted by the product/services.
Key customers and demand levels.
Market statistics on existing and potential demand.
Projected volumes, unit prices, and sales objectives and estimated
market share of the business.
Marketing strategies, potential users and distribution channels.
Present sources of supply for product.
Competitive advantage of project, market competition including the
possibility of substitutes.
Competitive Strategies
o Product Strategy
o Promotion Strategy
o Pricing Strategy
o Distribution/Place Strategy
o Critical success factors for the business
5. Financing Structure
A) Financial Projections and Funding Request
Proposed Financial structure indicating expected source and terms of
equity and debt financing
Type of financing required, amount and terms

Proposed security
Key operating and financial assumptions.

b) Security to be Provided
Description/nature, location of assets
Current valuation of the security and any existing charge?
Detail the nature of security offered such as property, other assets and
guarantees. Remember assets offered as security should not be
encumbered by other financiers
Description

Age

Origina
l cost

Open
Market/Bo
ok Value

Estimated
Forced Sales

Immovable
propertyplot number/Ward
Machinery&
Equipment
Motor vehicles
Livestock
Bank guarantee
Any other guarantee
Life
Insurance
Policy/Surrender value
Other

6. Internal Analysis (Strength and weaknesses)

1.What is the business going to do better than its competitors
2.What is the businesss strong points
3.What is the businesses weak points
4.How can the business increase its sales
5.What can make the business fail or go down

7.

External Analysis (Analysis using Political, Economic, Social,

Technological, Legal & Environmental factors, opportunities and
threats)

8. Risk & Sensitivity analysis.

What could stop me from succeeding

Is my machinery insured
Am I insured
Can somebody in my family take over if am ill:
Can I get spares for my machinery
What will stop me from selling the amount I said I will sell
Does the price of my stock go up quickly
Can I get enough people into my business to do the work
Tabulate the risk occurrence in terms of % and impact
Succession plan: should come under sensitivity analysis.
9. Financial projections (P&L, Cash flow & Balance sheet)

Key assumptions: Projected demand levels and market share,

Estimated total project cost- land, construction, installed equipment
and working capital
Projected 5 year Profit and Loss accounts: (First year month-by month
projections)
year projected financial performance with underlying assumptions
(Profit & Loss Account, Balance sheet, Cash flows, return on
investment)
Critical factors determining profitability.
Projected Profit & Loss Account
Year 1

Trading
Total Sales
Stock in hand at beginning of
the period
Total Purchases
Total stock at hand of the
period
Gross Profit
Total expenses
Depreciation
Loan Repayment
Income tax paid
Net Profit
ASSUMPTIONS
Sales Units
Sales price

Year 2

Year 3

Year 4

Year 5

Variable costs
Overhead expenses
Depreciation rates used
Tax rates used
Other assumption

Projected Balance Sheet

Year 1
Fixed Assets
Less accumulated
Depreciation
Net fixed assets
Investments
Current assets
Stock
Debtors
Cash and bank
Total current assets
Current liabilities
Creditors
Taxation
Loans-current portion
Bank overdraft
Total Current liabilities
Net current assets
Total net assets

Year 2

Year 3

Year 4

Year 5

Capital employed
Equity
Share capital
Retained earnings
Capital reserve
Shareholders loans
Shareholders interest
Grants
Long-term liabilities
Loans
Deferred tax
Total capital employed
CASH FLOW PLAN
YEAR 200

Feb
Ja
n

Cash Inflow
Sales
Other income
(e.g int. earned, sale
of asset or property)
Total cash
inflow(A)
Cash Outflow
Land
Plant & machinery
Equipment
Vehicles
Other assets
Operating / nonoperating costs
Salaries & wages
Electricity
Utilities
Water
Telephone
Electricity
Tax
Sales tax
Income tax

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

VAT
Financing costs
Loan repayments
Interest on overdrafts
Other costs
Fuel
Insurance
Rent
Raw materials
Marketing
Total cash
Outflow(B)
Net cash flow(A-B)
10. Implementation plan
N.B: Promoters are required to give an implementation schedule
of the project. Approval of the loan may elapse after a specified
time by the financier.
When will the project start
What is the first thing that must happen
When must it happen
List the activities which must happen after that with
reasonable dates and names of responsible people.
Provide a Gantt chart.

Personal balance sheet of shareholders/applicant

GUIDELINES TO COMPLETE THE BUSINESS PLAN

Back Ground (Overview)

Business name:
Nature of business: Services and products and key markets ad estimated
market share
Date of incorporation:
Share capital and shareholders and % shareholding:
Contacts: Physical location of the business Telephone contact, Postal
address, fax. E-mail. Website
Amount of funding required and reason for funding request.
Brief profiles of promoter/shareholders.
Summary table of financial performance from the audited accounts and
management accounts- 3-5 years Profit and Loss Accounts, Balance
sheets

1. Project Concept

Project objectives- local production, export

Clearly articulate the value proposition to the customers.
Summarized history of major events since inception- e.g. started as sole
proprietorship, incorporation, merger/acquisition, change in ownership
to the current status, etc.
Mission, vision and objectives of the business, philosophy.

2. Organizational and Management Structure

Promoters details- Names, Ages and nationality, current/proposed

shareholding in the company
Senior management involved in the day-to-day management of the
business.
Present occupation, relevant experience and proposed roles and
suitability.
Technical and professional qualifications
Organization structure, key positions/ Roles and Responsibilities,
breakdown in the number of employees
Support functions-accounting and controls, audit, IT, Corporate
Governance, Training and employee welfare, Quality Assurance

3. Operational Plan

Location: owned/rented/leased.
Source, cost, quality and availability of raw material supply and relations
with support industries/linkages
Source/suppliers of equipment, other technical support
Description of production/manufacturing process
Plant size/layout in comparison with other known plants.
Reason for choice of technology: labour intensive/capital intensive.
Project location in relation to suppliers, markets, infrastructure and
manpower
Infrastructure/utilities availability (roads, power, telephone, water,
security, etc)
Comments on special technical complexities and need for know how and
special skills
Operational plan

4. Marketing Plan

Description of the market for the product or service,

Benefits that the products/services meet.
Market segment targeted by the product/services.
Key customers and demand levels.
Market statistics on existing and potential demand.
Projected volumes, unit prices, and sales objectives and estimated
market share of the business.
Marketing strategies, potential users and distribution channels.
Present sources of supply for product.

Competitive advantage of project, market competition including the

possibility of substitutes.
Competitive Strategies
o Product Strategyo Promotion Strategy
o Pricing Strategy
o Distribution/Place Strategy
o Critical success factors for the business

5. Financing Structure

Proposed Financial structure indicating expected source and terms of

equity and debt financing
Type of financing required, amount and terms
Proposed security
Key operating and financial assumptions.
Description/nature, location of assets
Current valuation of the security and any existing charge?
Detail the nature of security offered such as property, other assets and
guarantees. Remember assets offered as security should not be
encumbered by other financiers
6. Internal Analysis
Carry out the SWOT Analysis
7. External Analysis
Analyse
the Political,Economic,social Technological Legal
Environmental Factors which may affect the business.(PESTLE)

and

8. Risk Analysis.
Here you analyse the or give statements of the possible risk that the
business may face such as capital expense overruns, limited market
penetration, labour and technical risk factors.
9. Financial projections (P&L, Cash flow & Balance sheet)

Key assumptions: Projected demand levels and market share,

Estimated total project cost- land, construction, installed equipment
and working capital
Projected 5 year Profit and Loss accounts: (First year month-by month
projections)
Proposed Financial structure indicating expected source and terms of
equity and debt financing

10.

year projected financial performance with underlying assumptions

(Profit & Loss Account, Balance sheet, Cash flows, return on
investment)
Critical factors determining profitability.
Implementaion plan
Here provide a detailed implementation schedule for
completion
of
various
activities,
e.g.
financing,
construction and planning permitions, obtaining licences.