Business Plan

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BUSINESS PLAN

M. Taimoor AbbasiLecturer – DMS

Department of Management SciencesThe Islamia University of Bahawalpur, Pakistan

Department of Management Sciences of the Islamia University of Bahawalpur, Pakistan: Prepared by: M. Taimoor Abbasi

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Business PlanC. INDUSTRY OVERVIEW:— Size— Growth— Overall trend (Business Cycle)Resources: Trade Associations, FCPL BRC, Internet

D. OBJETIVES:— Quantitative Objectives (Profits and Sales targets)— Qualitative Objectives (Market position)— Brief explaination of overall strategies for reaching goals


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Business Plan

I. Executive Summary:- Finish the section when you’ve finished all

other sections- You may wish to begin this section 1st,

however, organize the subsequent issues in your mind.

- Use this section to summarize the major points to address rest of the plan


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Business Plan

II. Capital PlanA. Sources of Funds

- Debt Financing- Equity Financing

B. Uses of Funds- Building purchase, build-out, equipment,

franchise fees, working capital reserves, etc. The uses of funds shall be elaborated with quantitative data support.


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Business Plan

C. Repayment of Funds:― Illustrate your ability to repay funds:

―Ability = Cash from operations (Recommended), Other sources may also be utilized but not recommended

―Establish a chart of cash repayment e.g. loan amortization scheduled explained with cash projections

―Use of assets for securing the loans as collateral


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Business PlanIII. BACKGROUND INFORMATION:A. Ownership and Corporate Format:― Type of Business (Sole Proprietorship, Partnership, Corporation,

SMC, and LLCs etc).― Its establishment, charter, and the composition of ownership in

businessB. History of the Business:— For existing businesses, talk about the major mile stones of

development including, opening, breakeven, major changes in products/services, important personnel additions and relocations.

— For new Businesses: talk about the preparations and planning you’ve done so far in anticipation of opening the company.


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Business Plan

E. IMPLENENTATION TIMELINE:— Major tasks and milestones (Plant purchase, site and locations

etc.)— For each of the tasks set out the time line

F. FUTURE OPPORTUNITIES:— This section is to be utilized for explaining the future

opportunities about which you don’t yet know enough about hows, whens, and ifs to include them in financial projections.


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Business Plan

IV. PRODUCTS AND SERVICES:A. Overview:— Brief overview of products/servicesB. Description of Products/Services by Category:— Describe nature of product/services in the category— Pricing and pricing policies— Direct costs— DO MATHS: Projected sales, units and pricing


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Business Plan

V. MANAGEMENT, STAFFING, STRATEGIC PARTNERS, AND PROFESSIONAL SUPPORT:

— Provide Projected Staff and Payroll for the 1st three years of operations

A. Management Team:— Partners, their roles, Job Description and Job Specifications etc— Specific skills and On hand experiences (Attach Resume)B. Staffing:— Modesity of Staff, Job titles, qualifications required to for

successful candidates


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Business Plan

C. STRATEGIC PARTNERS:— Partners having major effects on your business e.g. vendors,

general contractors, subcontractors, landlords, collaborative marketing partners, and others.

D. PROFESSIONAL SUPPORT:— Briefly describe professional support you’ll use for your

business e.g. the services of outsourcing partners, payroll services etc.

— Accountants, attorneys, book keepers, consultants, insurance brokers, graphic designers, and others.


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Business Plan

VI OPERATIONS:A. Hours and Days of Operations:— Hours and days of operations to configure the needs of your

customersB. Location & Facilities:Location – where will the business be located? Is location important to the success of your operation? How this location contribute to that success? What businesses and potential customers are nearby? For retail businesses, provide traffic count if you can.


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Business Plan

Facilities – Describe actual locations, covered area, space allocation, offices and the area occupied for vehicles. If renting, describe lease. Describe how your facilities needs will change as the business grows.

C. LICENCING, PERMITTING & OTHER REGULATORY ISSUES:Regulatory requirements – certifications licensing, permits, registrations etc.


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Business Plan

VII. MARKETINGA. Marketing Targets:- Most likely customers, who are they? What is important to them? Where are they? Do they have things in

common utilizing which we can communicate our marketing message?

B. Distribution- Product nature, channels, distribution strategies

C. Competitive Environment and Positioning- Market Structure


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Business Plan

D. MARKETING TACTICS:— Promotion tools for product and services such as advertising,

internet promotions, direct mail, trade shows etc. Print advertising.


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Business Plan

D. OTHER OPERATIONAL ISSUES:— Discuss all other issues which have not yet been discussed in

the previous sections.


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Business Plan

VIII FINANCIAL SUMMARY:— Sales— Profits— Expenses— Break – Even— Projected Income Statement— Projected Balance Sheet— Projected Cash Flow Statement— Financial Techniques such IRR, NPV, Loan Amortization,

Financial Plan, Working Capital, Financial Ratios etc.


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QUESTIONS


Documents

Business Plan