Business Planning: notes

The Business Plan

• Purpose: to guide the owner and to convince a bank or investor to lend money.
• Parts: business description, market analysis, marketing plan, operations plan, staff, finance (budget and cash flow) and objectives.
• Mission: a short statement of why the business exists, for example "to sell fresh, cheap vegetables in Mbare".
• Objectives: what the business wants to achieve.

SMART Goals

• Specific: clear. Measurable: counted. Achievable: realistic. Relevant: fits the mission. Time-bound: has a deadline.
• Example: "Sell 200 loaves a day within three months."

Resources and Money

• Resources: money, people, equipment, stock and premises.
• Start-up requirements: what you must buy or pay before you open, such as a stall, stock and a licence.
• Budget: a plan of expected income and spending.
• Registration and licences: a business must register and get permits, for example a council trading licence.

Pricing and Monitoring

• Pricing a new product: cover costs, check what competitors charge and add a profit.
• Monitoring: compare actual results with the plan and change it if needed.