There are three types of enterprise development:
·
Business start-up,
·
Business consolidation (merge/combine)
·
Business growth each of which is a distinct
stage in the process of developing a business:
Business start-up process
The business start-up process
extends from the conception of an idea to putting it into practice and evaluating
its potential:
(i)
Propose a business idea
(ii)
Confirm the feasibility of the business idea*
(iii)
Decide the level of entry into the market*
(iv)
Produce a business start-up plan
(v)
Obtain and deploy the necessary resources
(vi)
Start doing business
(vii)
Monitor and evaluate the results
*Planning for start-up can only
begin after the feasibility of the business idea has been confirmed and after
the level of entry into the market has been decided. This will depend on the
funds available for the start-up
Business consolidation process
Business consolidation can take
place at any time after a period of development and change, the aim being to stabilize
an enterprise within its current markets:
(i)
Review profitability
(ii)
Review production efficiency
(iii)
Review the customer base
(iv)
Set new performance targets and budgets
(v)
Make necessary operational changes
(vi)
Monitor and evaluate the results
*Planning can only start after these reviews have been
completed.
Business growth process
Business growth is of two types.
Type 1 growth is an increase in
sales derived from a more productive use of existing resources and more
effective exploitation of markets.
Type 2 growth is increased sales
derived from an increase in production capacity and/or product range derived
from investment.
The steps in the process are:
(i)
Review the current performance of the business (in the
market, in its production/service operations, in meeting financial targets
(ii)
Analyze the current capacity of the business to support
growth (resource base, experience base, control base, ideas base
management/leadership base)*
(iii)
Develop a growth project
(iv)
Start and complete the project
(v)
Monitor and evaluate the results
i.
Cover Sheet
ii.
Executive Summary
iii.
Table of Contents
iv.
Statement of Purpose
v.
Company History
vi.
Business Description
vii.
Products and Services
viii.
Market Analysis
Industry analysis
Customer analysis
Competitor
Pricing strategy
Sales/Marketing Strategy
ix.
Organizational Plan/Management
x.
Operational Plan
xi.
Financial Plan
xii.
Appendices
Cover Sheet
This section narrates identity
information. These are:
i.
The words “Business Plan”
ii.
Your name and business name
iii.
Company logo
iv.
Address
v.
Telephone number
vi.
Fax Number
vii.
Email Address
viii.
Web Address (URL)
ix.
Submission date
Executive Summary
Executive Summary is among the
most important parts of the business plan, because it summaries all important
features of the plan. Most people will read the executive summary before
deciding to read or not to read the whole document. It is normally written
last. It includes:
i.
Name of business promoter and her brief background
ii.
Name of the business
iii.
Business start date
iv.
Location
v.
Business objectives
vi.
Major activity of the business
vii.
Market prospects
viii.
Financial forecasts
Table of Contents
This section enables the reader to navigate through the document easily.
The reader will now which section of the plan is on which page. The table of
content shows page numbers, sections and subsections of the report.
Statement of Purpose
This section discusses briefly the major objectives of the business plan.
It can be financing and or operational.
For financing objectives, the important issues to talk about are:
v How much money is needed?
v What will the money be used for?
v How will the funds benefit the business?
v Why does this loan or investment make
business sense?
v How will the funds be repaid?
In case of
operational objectives key issues to address include:
ü Who will use it?
ü Will it outline strategy plans?
ü How will it be updated?
Sample: Statement of Purpose
This business plan is written to secure financing in the amount of
$24,000, which will cover the following costs:
•$10,000 in equipment
•$14,000 in operating capital
The loan will supplement the owner’s equity investment of $20,000, and
will be repaid beginning the month after disbursement according to lender
terms. Funds will play a crucial role in sustaining the business as the client
base grows, and will allow the business to become self-sufficient by the
beginning of year two.
Company History
Company history (or even the history of the individual business promoter)
is very important since it enables the reader of the business plan document to
get the company profile, track record and achievement. This section narrates:
i.
ii.
Basic
product description
iii.
Names of
principals (owners, Management) and brief background on each
iv.
Legalities:
business type
v.
Company
location
vi.
Number
of employees
vii.
Customer
highlights
viii.
Your
niche and unique qualities
ix.
Strategic
alliances
x.
Awards
and merits
xi.
Company
milestones (business formation, opening date, hiring employees, revenue levels/
growth)
xii.
1-3 year plan – future milestones to reach
(sales goals, hiring employees)
Sample: Company History
MAAKA Child Care strives to become the most-well known and reputable
service provider in the Tegeta Area,
The business is owned and operated by its co-founders, Masawe Associates
and Kalimanzira and Sons ltd. Each has had extensive experience working with
children prior to opening this project, in both a teaching and managing
capacity. Since opening in March of 2005, MAAKA Child Care has reached the
following milestones:
•Incorporated andregistered as a child care
centre in
•Renovated owned residence of principal to
operate, at
•Enlisted first 20 full-time clients/children
in April 2006
•Reached monthly break even June 2010
•Hired 3 full-time staff teacher June 2008
•Tshs 50,000,000 in revenue by September 2011
MAAKA plans to reach its capacity of 120 children by the end of December
2013, where projected monthly income will be Tshs 100,000,000. By June of the
following year, the MAAKA will look to expand the centre, to a capacity of up
to 200 children.
Business Description, products and services
Describe briefly the business you are planning to undertake/develop
including basic products or services offered, business type-new, takeover,
expansion, etc. Also include the
following:
v General strategy plan
v List of planned milestones (business
formation, opening date, hiring employees, reaching certain revenue goals)
v Planned strategic alliances
v Work already done
v Experience in the business
v Detailed description of products or services
v Indicate stage of development: in-process,
prototypes, samples
v Patents or trademarks, legal contracts,
licensing agreements, regulations, certifications
