businesss plan

• importance of business plan

  a business plan helps entrepreneurs set goals and objectives. It can be used to attract investors and prospective employees. It gives direction once the business starts operating. Helps entrepreneur to face threats head on and deal with them.
• Challenges of makro environment using pestel analysis

  Entrepreneurs should look at the factors that could affect business negatively. Businesses can use the PESTLE to scan the micro environment. Businesses do not have control over the makro environment.
• Purpose of executive summary

  it is used to satisfy those who do not have time to go through the entire plan in detail. Most lenders and investors read it before the entire business plan. It gives readers about what is contained the business plan.
• Aspects that must be included in the executive summary

  The form of business enterprise. Main business activity. Information about the owner of the business. They way in which capital will be obtained.
• vision statement


  statement which describes how a business will achieve its purpose. Long term goal of how entrepreneurs see their business in future and how they want it to grow.
• mission statement


  statement that addresses how the owner will achieve its vision. A statement which describes the purpose of the business and explains why the business exists
• goals and objectives 


  long term goals formulated to provide direction for the company to achieve its vision.
• relationship between the structure of the business and forms of ownership


  how many people the business needs to employ. Administration and record keeping.
• legal requirements of a business

  needs to be registered before it can obtain finance or start doing transactions. Business needs to comply with the following types of business requirements, trading license and permits to operate legally, taxation regulations and international trading, registration fees and patents and copyright.
• marketing plan

  description of market analysis including the target market. Guides business on how to advertise their products/services. Includes analysis of target market, customer, and competition.
• market research

  process to understand the customer's needs. business promote products and services. methods of conducting market research include surveys, questionaries, and interviews.
• marketing mix


  a mix of price, product, place, people, promotion, process, and physical environment. A marketing plan can be explained using the 7 elements. They are four main elements and three additional elements.
• product

  description of the product, appearance, and usage available to customers. it can be a picture, drawing, or photograph of what the product looks like.
• price


  the price of the product refers to the amount of money that must be paid for the customer to obtain the product. proposed business must include its pricing policy in the business plan. it must be affordable to the consumers.
• place


  location where the goods or service is sold. place where the consumers can access the goods or services.
• promotion

  refers to how business will make its target market aware of its product or service. promotion should communicate the benefits of the product to customers. proposed business should include details about promotion policy.
• people

  refers to employees, management shareholders, and directors/ all people involved in selling the product. the business plan should include detailed information of people that will be involved in the proposed business and making business
• process

  describes the way in which marketing and sales processes are carried out. Processes that are designed and implemented to ensure a pleasant shopping experience.
• physical environment


  environment where goods and services are sold/service rendered. includes the appearance of buildings and the uniform of employees. physical environment must be appropriate and make the customer feel comfortable
• strategies to overcome competition in the market

  sell quality products and services, charge reasonable prices, make your product unique, and provide attractive product displays.
• financial plan including a balance sheet


  a detailed description of the entrepreneur's financial contribution, the funding requirements, and project cash flow statement for 3 years
• budget


  estimation of revenue and expenses over a specified future period
• income statement


  monthly account of sales and expense
• break-even point


  the point at which profits that are equal to expenses/ a business does not show profit or loss.
• balance sheet 


  includes assets on one side and liabilities of the other