If you FAIL to PLAN...you PLAN to FAIL
So with that said, let's PLAN!!!
The basic outlay of a business plan was made easy by the Jamaica Business Development Corporation (JBDC) so ALL credit goes to them
BUSINESS PLAN FOR:
Name: _________________________________________
Address: _________________________________________
Telephone: _________________________________________
E-mail: _________________________________________
Executive Summary
Whereas this appears first in your plan it is really the last to be completed. The Executive
Summary summarizes the main idea of the plan. It conveys what the business is about and
the intent of the plan e.g. to attract capital investment.
HISTORY OF THE BUSINESS
This topic gives a brief account of the activities of the Business throughout its existence. If
the business is just starting it should explain where the idea came from, or why you are
starting this business. If the business is restarting you should explain why it was closed
previously and what you have learnt from that experience.
MISSION STATEMENT
Your Mission Statement explains the philosophy reason for your business’ existence. It
should capture your commitment to customers, environment and to staff. Your Mission
Statement should serve as a guide to your business’ development.
Example: To provide our customers with business development and consultancy services
that will enable them to compete forcefully within a competitive market while at the same
time providing quality and efficient service.
BUSINESS GOALS AND OBJECTIVES state a few
Goals
Goals are futuristic targets you set for your business. Your goals should be specific and
measurable.
Example: Achieve sales of $2 million by the year 2012
OBJECTIVES state a few
Your objectives are the methodologies you will employ to achieve the goals you have
established.
Example: Goal - Achieve sales of $2 million by the year 2012
Objective – Increase sales by 10% annually for the next 3 years.
KEYS TO SUCCESS you should have about than 4 in mind
These are elements of critical importance for your business. Based on the nature of
business these are areas that you believe will contribute significantly to your success. In
other words – what do you have to do for your business to work?
Example: The Key to Success for John’s Training and Consultancy is Product
Development – the need to continuously develop new products and improve on those that
are known to the public.
SWOT ANALYSIS
This is the summary of the company’s Strengths, Weakness, Opportunities and Threats
(SWOT). Your SWOT Analysis helps you to take an in-depth look at both the factors
affecting your business internally and those affecting it externally.
Strengths and Weaknesses are elements that are internal to your business i.e. those which
you can control.
Examples:
Strengths – Your knowledge of the industry, experience and location
Weaknesses – Limited working capital, inadequate staff complement.
Opportunities and Threats are issues that originate from environmental forces, most of
which you have no control over. However they affect your business just the same.
Example:
Opportunities – Greater awareness and acceptance of people with disabilities, more
efficient software and technological aids
Threats – GCT imposed on computers and software, reduction of grant assistance
from donor agencies.
INDUSTRY ANALYSIS
This section of your plan helps you to analyse the industry to which you belong. Your
analysis should take into account a description of trends within the industry, e.g. how has
the industry changed in the past few years, which government regulations affect the
industry, and who are the major players in the industry?
PRODUCT/SERVICE DESCRIPTION
This is where you describe clearly the product and services you will be offering to your
customers.
Example: John’s Training and Consultancy will be offering adult education and remedial
reading to the target market. Our suite of services will also include assessment of learning
disabilities, conflict management training and private tutoring.
MARKET ANALYSIS
Target Market
Your target market is that segment of the market that you will be targeting.
Example: The primary target market for our service will be Jamaicans with learning
disabilities. We have broken down this market into two segments that include…
#1 Customer Profile
This is where you give details about your customers. It should include their demographic
situation, income level, etc.
#2 Competition
Make a list of your major competitors and conduct an analysis of their strengths and
weaknesses. Their strengths may include their range of products, while their weaknesses
may include poor customer service or high prices.
MARKETING STRATEGY
In this section of your plan you will explain the strategies you will employ to create a
market presence.
Promotions / Advertisement
All businesses need to be promoted. You must devise a cost- effective method to reach your
target market. If your target market is localized e.g. in May Pen, advertisement on national
television may not be the must efficient and cost effective method.
Example: We will be undertaking a very aggressive promotional strategy. This strategy
will involve the following methodology …
Pricing strategy
Perhaps the most important variable within your business planning is the pricing strategy
you will employ. If your prices are too high then it may be out of the reach of our target
market and if they are too low it may give impression that your services/products are below
standards. Your pricing strategy should take into consideration the financial position of
your target market, the going price of similar products and the quality of the product.
DISTRIBUTION
Your methods of distribution may include direct selling, outsourcing or e-commerce.
OPERATIONS
This section of your plan helps you to put into perspective how your business will function
on a day-to-day basis.
Location
Give a brief description of where you will be located. You should list the advantages of
your location.
Example: John’s Training and Consultancy will be located at 123 Main Street, May Pen.
We will be occupying Shop #23 at the new Shopping Centre owned by Smiths Real
Estate.
TECHNOLOGY
What type of technology will you be utilizing within your enterprise?
Example: The success of our enterprise will depend on the efficient use of the latest
technology. These will include Hooked on Phonics, Adobe Diagnosis Kit, etc.
CAPACITY
You will need to make a projection of the amount of products/services you will produce or
supply on a given day, week or month. This projection will be based on your staff
complement, equipment, capacity and work-space.
PROCUREMENT
This is where you will outline the source of your equipment and supplies and also the
arrangement to be made for their retention.
Example: Equipment and supplies will be sourced from ATH Jamaica Limited, a leader in
the field of Office supplies. ATH has developed a reputation for…
STRATEGIC ALLIANCES
The success of your enterprise may depend on your level of networking. You will need to
make a listing of all the major businesses and agencies that will add to the success of your
business.
Example: Johns Training and Consultancy will be formulating networking relationships with
the Ministry of Education Special Education Unit, HEART/NTA and JAMAL.
OPERATING METHODS
Give a brief description of how the business will operate e.g. credit
arrangements, opening hours, discount policy etc.
ORGANIZATION
In this section of your plan you will need to outline how your business will be organized.
Ownership structure
Who will own the business?
Example: Johns Training and Consultancy will be owned by… and operated as a Non-
Profit Organization registered with the Council of Voluntary Social Services.
arrangements, opening hours, discount policy etc.
ORGANIZATION
In this section of your plan you will need to outline how your business will be organized.
Ownership structure
Who will own the business?
Example: Johns Training and Consultancy will be owned by… and operated as a Non-
Profit Organization registered with the Council of Voluntary Social Services.
MANAGEMENT TEAM
Make a list of your management team, their qualifications and their responsibilities.Example: Our management team will comprise a team of well-trained, experienced and
dedicated individuals. The team will include…
BREAKEVEN ANALYSIS
not making a profit or loss)
SALE FORECAST
key is not to over-estimate, as this will set you up for disappointment. Try to be as realistic as possible.
Start-up cost
If you are starting a new business, then you will be required to calculate the total a mount needed to start this venture. This should also include the cost for all raw material and labour. If the business is an existing one and you are seeking funding you should also give a detailed listing of how much money you will need and what the money will be used for.
* Source of funding may either be: Loans, Grants or Equity.
Loans – These are sources of funding usually given by a bank or from a friend with repayment terms and, in most cases, with interest.
Grants - These are moneys that are given to an investor without repayment terms or interest. In other words you don’t have to pay it back.
Equity – This is money that you or you business partner will be putting into the business.
OPERATING COSTS
VARIABLE COSTS: per month, for the year. Estimate the following:
Labour Operartions (Wages)
Material Purchases
Utilities
TOTAL VARIABLE COSTS
FIXED COSTS
Salary
Debt Servicing
Insurance/Licensing
Income Tax, NHT, NIS Ed. Tax
Petty Cash
Promotion
Rent/Lease
Transportation
Contingency
Maintenance/Servicing
TOTAL FIXED COSTS
TOTAL OPERATING COSTS
PROJECTED CASH FLOW
Business Name:per month, for the year. Estimate the following:
Cash Inflow:
Opening Balance
Sales on Credit
Cash Sale
Loan
Equity
Total Cash Inflow
Cash Outflow
Raw material Purchase
Salarie
wages
Electricity
Water
Phone
Promotions
Stationary
Transportation Raw material
Transportation Finish goods
Rent
Loan repayment
Insurance
Maintainace
Savings
Other
Miscellanceous
Total Cash outflow
Closing Balance = total cash inflow -total cash outflow
THIS WILL DEFINITELY HELP! so now you can know more about what your doing and where your headed...need more info? Then email me at christalannthompson@gmail.com Let's get your business up & running :)
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