Group 1 Presentation
Group 1 Presentation
Group 1 Presentation
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
Employees 40 30 15
• 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.
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
• Main areas to be accounted are the organizational structure of the company and
the expense and capital requirements
• Cost of goods table ( used when the product is placed into inventory )
Other Components