Business Plan Flashcards
(14 cards)
What is a business plan?
A business plan is a document that:
- Summarizes the organization’s long-term strategy.
- Secures financing from investors.
- Helps forecast future business demands.
Why is a business plan important on a personal level?
It helps clarify personal motivations for running a business, the support system (family, friends), and inspiration from everyday life such as media or work conversations.
What are the key parts of a business plan?
- Background
- Organizational and Management Structure
- Operational Plan
- Marketing Plan
- SWOT Analysis
- Financial Structure
- Additional Documentation
What information should the background section of a business plan include?
- Company formation date
- Ownership status (e.g., 100% citizen-owned)
- Type of business
-Vision, mission, values (e.g., customer focus, botho) - Objectives
What should the Organizational and Management section contain?
- Organizational structure (include a diagram)
- Roles (e.g., Director, Finance Officer, Marketing Officer)
- Responsibilities and whether the owner manages the business
What should be included in the Operational Plan?
- Facilities and infrastructure (e.g., backup generators, wells)
- Implementation plan (e.g., Gantt chart)
- Community needs or service gaps
- Steps post-funding
What goes in the Product Description section?
- Description of the product or service
- Capacity (e.g., weekly/monthly production)
- Turnaround time
- Assumptions over 1 and 5 years (e.g., profit expectations)
What stages are part of the production process?
- Procurement of inputs (accredited suppliers)
- Preparation (land, plant, or office)
- Production
- Packaging
- Storage
- Distribution
What key components are part of a Marketing Plan?
Product details
Market research
Competitor analysis
Target market (age, income, location)
Pricing and production volumes
What are examples of distribution channels and marketing strategies?
Channels: Direct sales, delivery services, expansions
Marketing: Brochures, branded vehicles, social media, radio, TV, websites, WhatsApp
What is the purpose of a SWOT analysis in a business plan?
To assess internal and external factors:
- Strengths
- Weaknesses
- Opportunities
- Threats
What elements make up the Financing Structure?
- Capital requirements: Cash, equipment, software, staff, stock
- Income statements (personal and company)
- Balance sheets, cash flow statements
- Break-even analysis and 5-year financial projections
What additional documentation may be required in a business plan?
- Proof of no debt/
- Valuation reports
- Title deeds
- Company registration and tax clearance
- PPADB registration
- Education and licensing certificates
- Bank and financial statements
- Insurance and 3 quotations for needed supplies
