The number of great concepts that have not been transformed into profitable concerns is quite scary. More often than not, the entrepreneurs in question are extremely hard working and dedicated, but have failed to secure much needed investment of capital, be it financial or intellectual. A well-prepared Business Plan will not only open doors for you at financial institutions but will also attract other potential stakeholders.
The following is a guide to drawing up an Effective Business Plan, to be used as a framework for your concept, but still requires an expert’s opinion before making any submissions
Name of business or trading name
Occupancy status: owner/tenant, if owner include your net equity in property
Contact person, including current position, telephone numbers and e-mail
Reasons for funding application
New business, expanding current concern or taking over an existing operation
Assets that finance will cover
Owners/shareholders contribution both cash and fixed assets
Description and overview
Type of business, namely: partnership, closed corporation, private/public company or franchise
Nature of enterprise (retail, manufacturing etc.)
Detailed ownership breakdown
Age of operation
What kind insurance is in place
Products or services that are provided
Current and projected offerings
Market location and logistics
Existing pipeline (tenders and long-term contracts)
Turnover , past statements and expected future revenue
Large customers being serviced, and those in your sights
Future target market
Sales forecast and budget
Manufacturing business environment
Current processes and plans
Essential major equipment
Future profit expectations
Detailed stock-value appraisal
List realistic competitors and their market share
Do they threaten your market share, now or with future plans?
What sets you apart?
Percentage of annual sales on credit
Details of terms given
Is it in accordance with industry norms?
How is bad debt managed?
List of, and length of relationship with, major suppliers
Purchasers budget is a bonus, but not essential
Sureties you have provided
Existing operations must produce most recent balance sheet, profit and loss account and cash flow statement
New business need to furnish reputably supported projections of cash flow, income and balance sheet
The details of financial advisor: name, address and contact details
List of shareholders/partners assets
Three- year cash projection
Personal bank statements for the last three months
The details listed above need to be presented in a fully-proofed and bound fashion, with extensive information on financials and ownership.
Everything needs to be preceded by an Executive summary, which is never longer than one page, and provides a concise explanation of the concept and the nature of funding requested.