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TECHNOLOGICAL ENTREPRENEURSHIP

AND INNOVATION
PROSPER T MBONDERI R1811607T THEOPHILUS MTAMIRI R1813064W
TAKUDZWA MBENGO R189297W TAWANDA MUMHARU R184622E
AARON NYAMUPINGA R184041J TINASHE TAGARIRA
OBEY GUMBO R183080V TAFADZWA MARAPIRA R184749E
TALENT DZIMIRI R189367G
PANASHE NGWARU R187915T
JERALD MWALE R179949X
NORMAN RAZIKA R185065X
SAVIOUS MUKOVA R1810966H
VUKANI CHIPUNZA R187938T
KUDZANAYICHIZEYA R183169A
Question 2: Describe the business plan
development
INTRODUCTION
A Business Plan is a documented strategy for a business that highlights
its goals and its plans for achieving them. It outlines a company's go-to-
market plan, competing plan, financial projections, market research,
business purpose, and the mission and vision statement. Key staff who
are responsible for achieving the goals may also be included in the
business plan along with a timeline.
Below is the basic structure of how the business plan should be drafted:

1. Cover Page
2. Contents
3. Executive Summary
4. Business Description/Overview
5. Market Analysis
6. Competitive Analysis
7. Sales and Marketing Plan
8. Ownership and Management Plan
9. Operating Plan
10. Financial Plan
COVER PAGE & CONTENTS
Cover Page
• The cover page will contain all the basic information.
• It will include information like:
(i) Name of business or individual
(ii) Physical address
(iii) Postal address
(iv) Contact person
(v) Contact details (telephone, fax, email and website if applicable)
Contents
• This is where all sections within the business plan documentation will
be outlined.
• In the contents section is also where you will find the corresponding
pages to the sections.
• The contents page will make it esier for the reader to navigate through
the business plan and find information quickly and easily
EXECUTIVE SUMMARY
• This is the first and most important section in a business plan.
• The investors will get to the other sections of the plan to get more details of
the plan if they get this section attractive.
• The executive summary is a summary of the rest of the plan and therefore
written after you have made the plan.
• The executive summary is all about getting your investor excited in less
time.
• Do not try to tell everything about your business but keep it short and
straight to the point.
• There are four things that you must cover:
 who you are
 what you sell
 how big and profitable it can get
 how much you need
• Mission Statement
A mission statement is a short summary of an organization’s core purpose, focus, and
aims.
This usually includes a brief description of what the organization does and its key
objectives.
Example - Kmart’s Mission Statement
We are committed to improving the lives of our customers by providing quality
services, products and solutions that earn their trust and build lifetime relationships.
• Vision Statement
A vision statement is a short description of an organization’s aspirations and the
wider impact it aims to create.
It should be a guiding beacon to everyone within the organization and something
which underpins internal decision-making and determines the intended direction of the
organization.
Example - KMart Vision Statement
Kmart’s vision is to provide families with everyday products at the lowest prices. We
strive for this vision through high-volume sales, efficient operations, adaptable stores
and a great culture.
• In short: The mission is the “what” and the “how,” and the vision is
the “why.”
• The mission statement defines what an organization does and includes
tangible goals which the organization strives to accomplish. The vision
statement, meanwhile, should clarify the aspirations of the
organization and define the direction it’s heading in.
• Many organizations combine the two statements to form one clearly
defined reason for existing that unites the efforts of everyone involved.
BUSINESS OVERVIEW
• The business overview is a component of a business plan that provides
a general explanation of your company. By reading this section, the
audience learns about your company and its structure, values, mission
and offerings.
• It can also demonstrate what makes your company unique from
competitors. This section of the business plan is sometimes called a
"company description "or "summary."
• It also describes the overall nature of the industry, including sales and
other statistics.
• It involves trends and demographics, and economic, cultural, and
governmental influences.
• It also shows:
(i) Existing customer behaviour - What product or service are
potential customers currently using to fill the identified need?
(ii) Expected change - Will potential clients change from existing
product or service to yours and why? What is required to convince
them? What is required to convince them
A Business Overview Example
Redd Marketing designs and optimizes customer loyalty programs for retail
brands across the country. This RMD is headquartered in Harare. The
company was founded five years ago by Tariro Muchinga, an industry expert
with over 30 years of industry experience. He realized loyalty programs were
an innovative way to attract and maintain a strong customer base. He decided
to begin Redd Marketing to focus on this concept and develop unique software
to help businesses manage better manage customers and their data. In the past
three years, Redd Marketing has grown by 150%. We attribute that growth to
our commitment to identifying new clients and markets and hope to double that
within the next two years. Currently, we are seeking an investment of $60,000
to help scale our company and grow our team across the Zimbabwe. We also
aim to use those funds to help continue innovating our software to create
exciting and rewarding experiences for our customers.
MARKET ANALYSIS
• It is a thorough assessment of a market within a specific industry
• The following should be considered
(i) who are my customers,
(ii) what are my customers ` buying habits
(iii) how large is my target market
(iv) who are my main competitors their strengths and weaknesses
• Describe the need for your products or services
COMPETITIVE ANALYSIS
• It is assessing and analyzing the comparative strengths and
weaknesses of competitors, may include their current and potential
product and service development and marketing strategies.
• It describes any helpful barriers to entry that may protect the business
from competition, such as access to capital, technology, regulations,
employee skill sets, location, etc.
• It explains why the product or service is better than the others.
• Describes any competitive advantages the business has, such as a
patent, copyrights, trademarks or other unique component to the
business.
Factors Your Competitive Analysis Should
Include
• Feature matrix - Find all the features that each direct competitor’s
product or service has.
• Market Share Percentage - Evaluating the marketplace by percentage
helps identify the main competitors in your area.
• Pricing - Pinpoint how much your competitors charge and where they
fall on the quantity versus quality spectrum.
• Strengths - Identify what your competitors are doing well and what
works for them.
• Customer Reviews -Analyze your competitors’ customer reviews, both
positive reviews and negative ones.
• Estimate the volume and value of your sales in comparison with any
existing competitors.
• It helps to summarize the results in table form example below:
Business Competitor A Competitor B Your Business

Estimated Annual Revenue 300,000ZWL 180,000ZWL 150,000ZWL

Employees 40 30 15

Price Average Average Low

Quality High Average High


Benefits Of Carrying Out A Competitive
Analysis
• You are aware about changes to competitors’ existing products or
services that make them more attractive
• Kept up to speed on new complementary products or services from
your contenders that you could also offer or alter
• You are not caught off guard by the threat posed by new market
entrants or transformative products
SALES AND MARKETING PLAN
• Marketing is building awareness of your organization and brand to
potential customers.
• Sales is turning that viewership into a profit, by converting those
potential customers into actual ones.
• Marketing focuses on moving the product from the company to the
market (through product launches and awareness campaigns), while
sales focuses on moving the product from the market to the customer.
Sales focuses on the needs of the company, while marketing focuses
on the needs of the market
• These are categorized into Traditional Marketing Strategies and Digital
Marketing
1. Traditional Marketing Strategies
Before technology and the internet, traditional market strategies was the
primary way companies would market their goods to customersThe main
types of traditional marketing strategies includes:
(i) Outdoor Marketing
(ii) Print Marketing
(iii) Direct Marketing
(iv) Electronic Marketing
(v) Event Marketing
2. Digital Marketing Strategies
The marketing industry has been forever changed with the introduction
of digital marketing. From the early days of pop-up ads to targeted
placements based on viewing history, there are now innovating ways
companies can reach customers through digital marketing.
(i) Search Engine Marketing
(ii)Social Media Marketing
(iii) Content Marketing
OWNERSHIP AND MANAGEMENT
PLAN
Business ownership refers to the control over an enterprise, providing the power to dictate the operations and functions.
Business Ownership: Overview
Businesses can be acquired in several ways:
• Starting a new business
• Franchising an existing business
• Buying an existing business
If you choose to start your own business, this is one of the ways to become a company owner.
This process comes with several key benefits. The first benefit is retaining complete control over the company.
You don't have to answer to anyone, nor are you contractually bound to follow someone else's rules.
Business owners can also introduce new services and products, plans for expanding the business, and other aspects of
growth and success.
One of the key advantages to franchising is reduced risk. Starting a new business is risky, but franchising allows you to
build on the success of an existing company. A franchise owner also doesn't have to devote as much time to establish the
new business.
Buying a company that is already operating is the third way to become a business owner. Advantages of this option include
less time required to get started with the operations of the business, along with lower expenses than what you would have to
spend on establishing a new business. You'll also have an established group of suppliers and an established client base.
Types of Business Ownership:
Sole Proprietorship
• When a business is owned and operated by a single person, it is a sole proprietorship. Most small companies
start as sole proprietorships. This type of company is owned by a single person, who is typically responsible for
the day-to-day operations of the business.

• A sole proprietorship does not exist as a legal entity, separate from its owner. This means that the business
owner is personally responsible for all obligations and debts. The owner also keeps all business profits. A sole
proprietor owns the business assets and all of its profits. This individual is also completely responsible for any
business debts and liabilities.

Several of the advantages of forming a sole proprietorship include:


Ease of formation
Low cost of formation
Ownership of all business profits
Control and flexibility, with few government regulations on how the business must be run
Sole proprietorships do come with some disadvantages as well. These include:
Limited financing sources, based on the owner's personal credit
All debt is taken on as personal debt, which could impact your personal assets
Limited lifespan since the business ends upon the death of the owner

Partnership
• Another option for business formation is a partnership, which is owned by at least two people. The two main
types of partnerships are limited and general.
• A limited partnership has at least one partner whose liability is limited to the amount invested in the company.
In general partnerships, each partner is liable for any business debts and obligations on a personal level.
A Limited Partnership
A limited partnership has a single general partner who runs the business and is responsible for its liabilities, plus
any number of limited partners who have limited involvement in the business and whose losses are limited to
the amount of their investment.
A Corporation
A corporation is a legal entity that’s separate from the parties who own it, the shareholders who invest by buying
shares of stock. Corporations are governed by a Board of Directors, elected by the shareholders.
A Cooperative
• is a business owned and controlled by those who use its services. Individuals and firms who belong to
the cooperative join together to market products, purchase supplies, and provide services for its
members.

A Not-For-Profit Corporation
• A not-for-profit corporation is an organization formed to serve some public purpose rather than for
financial gain. It enjoys favorable tax treatment.

A Merge
• A merger occurs when two companies combine to form a new company.

An Acquisition
• An acquisition is the purchase of one company by another with no new company being formed. A
hostile takeover occurs when a company is purchased even though the company’s management and
Board of Directors do not want to be acquired.
OPERATING PLAN
• It describes how the business functions on an continuing basis

• It highlights the logistics of the organization such as the responsibilities of the


management team and their tasks.

• Main areas to be accounted are the organizational structure of the company and
the expense and capital requirements

• Components accounted indicates the components that create value to the


company
 
Tables created are the

• Operational expense table

• Capital requirements table ( depicts the amount of money necessary to


purchase the equipment and illustrates the amount of depreciation the
company will incur )

• Cost of goods table ( used when the product is placed into inventory )
Other Components

• Describe the product produced

• Business location and working hours

• Personnel and industry association membership

• Suppliers and quality control

• Payment processing ( credit policies and account payable )


FINANCIAL PLAN
• The financial plan has to demonstrate that your business will grow and
be profitable.
• To do this, you will need to create start-up costs, projected income
statements, cash flow statements, break-even anslysis and balance
sheets.
• For a new business, these are forecasts.
• A good rule of thumb is to underestimate revenues and overestimate
expenses.
(i) Start-Up Costs
If you are about to start a business, first you are supposed to determine
start-up costs. They are the first time expenditures that you have to spend before
opening your business.
It includes all costs such as furniture, supplies, equipment, renovations,
license permits and incorporation fees.
(ii) Income Statements
It shows your actual business expenses and revenues, the difference between
the net profit over some time it sometimes often referred to as profit and loss
statement or an operating statement.
From a regular check-in, the projected income statement (at least every three
months) can help you identify an emerging problem in your business.
(iii) Cash Flow Projections
The Cash Flow projection shows your monthly anticipated cash revenues and
disbursements for expenses
The first is to calculate how much revenue you expect to generate from the
sales every month. For that:
(i) consider the best and worst.
(ii) reach to the clients who can repay loan on a regular-schedule basis
(iii) set a credit policy.
(iv) which bills should be delayed and what to be paid. The projections must
be completed on an ongoing basis.
(iv) Balance Sheet
It is a snapshot record which contains all the details of what your
business assets (owns) are or on as well as its liabilities (owes).
Assets can be money, property, vehicle, inventory etc. The projected
balance sheet is what predicts the net worth of your business over a
specific period in future. It should be from at least one year to three
years into the future
(v) Break-Even Analysis
It is a useful tool which calculates at what point your company will
be able to make a profit. This is where the total costs equal total
revenues. It is based on three factors:- Selling price, fixed cost and
variable cost.

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