t he business plan

1. the business plan By MAROUSKA VELLA & STEPHEN SCICLUNA

3. PURPOSE OF THE BUSINESS PLAN

4. The contents of the business plan • Executive Summary • Company Profile • Current Market Situation • SWOT Analysis • Objectives • The Product • Market Analysis • Strategy and Implementation • Directors and Management Profiles • Financial Plan and Projections • Appendix

5. 1. Executive summary • Presents a brief summary of the main goals and recommendations of the plan for management review, helping top management to find the plan’s major points quickly. • A table of contents should follow the executive summary. How does this help top management? • It helps top management to find the plan’s major points quickly.

6. 2. Company Profile • Vision Statement - An aspirational description that is intended to serve as a clear guide for choosing current and future course of action. • Mission Statement - The organization’s purpose, what it wants to accomplish in the larger environment. • The Product - Brief description of the idea and the product that the company will offer to its customers. • Company Summary - A brief description about the company. • Company Ownership - A brief description of the equity meaning how the company is funded.

7. 3. Current marketing situation Describes the target market and company’s position in it, including information about the market, product performance, competition and distribution. • Market Description- the target market and market segment is defined, customer needs are taken into consideration and factors in the marketing environment that may affect customer purchasingare reviewed. • Industry Overview - defines the industry in which the company will operate that is whether it is manufacturing industry, service industry, sales and retail industry, tourism industry etc. • Product Review - that shows sales, prices and profit margin of the major products currently in the product line. • Review of Competition - that identifies major competitors and assesses their market position and strategies for product quality, pricing, distribution and promotion. • Review of Distribution - that evaluates recent sales trends and other developments in major distribution channels.

8. 4. SWOT Analysis

9. 5. objectives Objectives need to be a balance of the aspirational and realistic goals of the organisation in an attempt to improve its market position within acceptable risk limits. The basic criteria for setting objectives based upon the SMART acronym is that they need to be: • Specific- by being focused on the results required. • Measurable – for each objective set. • Achievable – set against trends and market position constraints and assessed fully. • Realistic – given resources constraints of time and money etc… • Time Limits – of when the objective(s) should be reached. How does this help the management? • This helps the management do objectives that he /she can attain and reach.

10. 6. The product • Customer and Suppliers - Who are the customers (target market) and suppliers. • Terms of the business dealings -Are there any purchases made on credit? Will the business apply the cash concept? Explain further your terms. • Production Process - What are the stages that the company needs to go through to make the product? How long does it take for the product/service to be produced/provided? • Operations Process - The terms of operation. When will the product be final?

11. 7. Market analysis Market Research • Primary Research- “Primary data originated by the researcher specifically to address the research problem” . • Secondary Research - Secondary data is information that has been previously gathered for some purpose other than the current research project. The data is available either free or at a cost and can be delivered electronically by computer or in printed hard-copy format”.

12. 8. Strategy and implementation Strategies are the means by which the objectives are to be achieved. Here the management has to answer the question – How do we get there? Business Strategy • Value Proposition - that is the total set of benefits that the company will offer to its target market. • USP – Unique Selling Point – What makes the product unique? Marketing Strategy • Product Strategy • Price Strategy • Promotion ( Integrated Marketing Communication) Strategy • Place Strategy • Sales Strategy • Internal Communication Strategy

13. Managing Director Francesca Sant 9. Directors and management profiles Company Secretary Nathan Abela Financial Controller Justin Xerri IT Director Nathan Abela Marketing and Sales Manager David Bugeja Human Resources Manager Sephora Vella • Organisation Chart

14. 10. Financial plan and projections • Financial Plan and Project Notes • Capital • Profit Generation • Projected Management Accounts • Break-even Forecast • Forecast Profit & Loss Statement • Forecast Statement of Financial Position • Forecast Cash Flow Statement

15. 11. appendix Extra documentation to substantiate the business plan. Includes details and studies used in the business plan, example: • Letters, agreements or quotes from customers, distributors, or subcontractors. • Secondary data or Primary Research data used to support plan decisions. • Leases, contracts, or other types of agreements. • Price lists from suppliers and competitors. • Brochures and advertising material. • Blueprints and plans. • Maps and photos. • Relevant articles.

17. Thank you for your attention