Business Plan
Workbook
The Executive Summary
Nature of the
business organization
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On your right describe your business
organization emphasizing the functions, context in which it operates,
product/services to be offered, markets and business location etc.
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Nature of business organization
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Competencies of the
entrepreneur
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On your right write down your competencies as
an entrepreneur in the context of the business pursued. !
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Competencies
of the entrepreneur
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Contribution of the
business to the local and national development
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On your right write down the contribution of the
business to the local and national development
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Contribution of the business to the local and national development
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Part 1
Description of the Business
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On your right describe your business
organization emphasizing the vision, mission and functions, !
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Description of the business
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Part 2
Marketing Plan
2.1 The Product
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Success in business means offering your
potential buyers with products that have better features than what are
already available. Check whether you can make the existing products … easier
to use, pleasant , safer, healthful, comfortable, cleaner, cheaper,
attractive and smarter, as well as disposable. Then try:
Substituting
existing materials with ones that are cheaper and more locally
available
Combining
or adding more functions, uses
and features in the existing products.
Maximizing
or increasing the size, range, colours, or materials in existing
products.
Maximizing
or reducing or rearranging
product size, range, colours, or materials.
Multiplying
purpose or
changing the purpose of existing products.
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On your right, draw or describe your product
emphasizing the characteristics that make it better than what is now sold in
your area .
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Product Description
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2.2 Comparison of the product and services to those offered by
Competitors’
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Briefly describe the existing competitors’
strengths and how you intend to “outsell” your competitors in the market
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Competitors’
strengths and my competitive advantage
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2.3 Location of the business
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Briefly describe the location
of your business. You may find necessary to draw a map. Identify reasons for
choosing this location
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Business location and
reasons for choosing the location
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2.4 Market Area
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Where are the potential buyers
that you can easily reach-out located (mention the names of towns, villages,
communities, etc.)?.
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Market
Coverage
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Why do you think they are the best places for your
product?
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2.5 Main customers
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Briefly describe the type of
customers whether individuals or institutions, what they prefer and their
income (whether low, medium or high)
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Main customers, their
preferences and income levels
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2.6 Demand
analysis
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In estimating the number of buyers, you need
to know:
Locations:
The towns, villages,
communities, etc. that you identified earlier You can get the figures from
the local DC or SIDO offices. Please note where you got the figures.
Target
(in % Population): This is your very conservative estimate of
the percent of the population that can really buy your products and
services. To estimate this figure, check with the results of your market
survey.
Potential
Buyers: Multiply the Estimated Population with the
Target (in %) to get the estimated number of potential buyers for each market
location.
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2.6.1.
Number of Potential Buyers
The number of potential buyers consisting of both individual and
institutional for the product is estimated in table 2.6.1 below:
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Table 2.6.1 Number of Potential Buyers
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Location
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Estimated Population
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Target (in % Population)
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Potential Buyers
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Total
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2.6.1 Estimating Future Demand
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In estimating future demand figures, you will
need the following information:
Years:
Five years to the future beginning this year.
Potential
Buyers (Persons): Each year into future, the number of potential buyers will
increase with the population.
Usage
Rate: This is the frequency that the average buyer will buy your product
within a given period, say a week, a month, or a year )). This figure must
have been identified during your market survey.
Potential
Buyers: By multiplying the usage Rate with the Potential Buyers, you get the
future demand estimates.
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The future demand of the product within the
next five years is calculated in Table 2.6.2 below:
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Table 2.6.2 The Next Five-Year Demand Estimates
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Years
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Potential Buyers (Persons)
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Usage Rate
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Future Demand Estimates
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Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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Why do you believe that the future demand for
your product will be as you have predicted?
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Justifying
the Future Demand Estimates
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2.7 Supply Analysis
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Your competitors. The following are your
competitors because they are already providing the same products you intend
to make to the market that you want to capture:
Importers:
Products come from producers outside the town you are in.
Local
Producers: Products come from producers inside the town
you are in.
Substitutes
Makers: While the product does not exist, substitutes
are available.
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2.7.1 Imports
Presently, the importers of the product are
described in the Table 2.7.1 below:
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Table 2.7.1. The Importers
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Company Name
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Location
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Imports/Month
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Total Imports per year
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TOTAL
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2.7.2 Local Producers
The local producers of the product are
described in table 2.7.2 below:
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Table 2.7.2. The Local Producers
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Company Name
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Location
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Production/ Month
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Total Production per year
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TOTAL
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Are there already substitute products that
the buyers are now using ? What are they?
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2.7.3.
Substitutes
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2.7.4
Future Supply Estimates
The future supply of the product in this town
is shown in the Table below:
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Table 2.7.4. Future Supply Estimates:
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Years
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Local
Production
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Imports
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Future Supply
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Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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2.8. Expected
Market volume
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2.8.1. The Demand and Supply Gap
The future demand and supply of the product
in this town is shown in table 2.8.1 below:
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Table 2.8.1 Future Demand and Supply Gap:
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Years
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Future
Demand
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Future Supply
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Demand and Supply Gap
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Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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NOTE: Expected Market volume: _______ % of the Gap
2.9 Selling Price
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PRICING. In this stage, the pricing of your products
must consider not only your marketing costs (for example, cost of labels,
packaging, salesmen, promotion, advertising, etc. but also the prices of your
competitor.
Will the prices be higher … or lower ? Why?
Will you offer special discounts … for large
orders? How about discounts for cash payments?
It may be a good idea to include a tentative
price list of your products. If you intend to start a restaurant, why not
include a menu.
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Describe your pricing strategies
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Pricing
Strategies
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2.10 The Sales Forecasts
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Sales Forecasts
The Sales forecast of the proposed enterprise
is shown in the table 2.10.1 below:
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Table 2.10.1. The Five-Year Sales Forecasts
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Years
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Sales in Tshs
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Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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2.11. Promotional
Measures
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PROMOTION AND ADVERTISING. Advertising
is a continuous process telling your buyers about products. Some examples
include having a press release, sponsoring a civic event or activity, and an
ad in the newspaper or radio, billboards or posters, flyers, etc.
Promotional activities offer added incentive
for the buyer to buy your products.
Examples are: 2 for 1 offers, coupons,
special sale prices, rebates, lottery, and give a ways.
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Describe how you will promote and advertise
your products and then estimate the costs involved.
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2.11.1
Promotional
Strategies
2.11.2
Advertising Strategies
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2.12
Distribution Channels
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CHANNELS OF DISTRIBUTION. In the channels decision, consider the
intermediaries that will move your products from your factory to the
potential buyers. Here, moving involves costs for transport, storage,
inventory carrying, etc. The following (or their combination) are your
choices:
Direct
Selling: You (or your salesperson) will actually do
the actual selling, delivery, sales collection, and servicing of sales to the
buyers.
Retailers
You can rely on several small and independent retailers to actually do
the selling to your potential buyers.
Wholesalers: You
can also reply on big wholesalers to sell your products to several small
retailers and then to your buyers.
To select the right channel, you should
consider the cheapest way to reach your buyers.
REMEMBER. Whatever you decide on, the
channels will charge (discounts or higher profit margins) you
for their services. You should consider these in pricing your
products.
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Describe your channels of distribution (if
any) and how would you reward them? You
can attach a drawing of the channels.
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Channels
of Distribution
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2.13 Marketing
Budget
Estimate the annual budget for marketing activities.
The budget should cover:
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Advertising and promotion
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Distribution
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Commission
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Etc.
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