BDS Ethiopia - Business planning

The business plan is the most essential document involved when starting, building and managing a successful business and it is an effective tool for raising the necessary capital as well as capturing the interest of investors. The business plan is the document that clearly and concisely defines the goals and objectives of a business, outlining the methods for achieving them. The business plan is also an excellent communication instrument for investors and suppliers interested in understanding the operations and goals of the business.

Many businesses fail due to the lack of planning and preparation. To help plan for a successful business venture, guidelines in this publication would help an operator better understand what information is needed in the business plan. The more complete and accurate the information, the more promptly institutions, banks, investors, and suppliers will be able to respond to requests for assistance. Generally, the operator himself would be responsible for preparing the business plan.

The two business plan outlines below present all necessary chapters in detail, accompanied by a column with help functions including all necessary explanations.

Business plan 1 - Ethiopian application (provided from ISDC Ambo):
busplan-ambo.doc 40 KB, Winword version for download [ top]

The business plan 1 describes what the business will do, how and where it will be done, and how the business will be financed and managed. Its basic components include the following chapters:

The business plan outlined below presents all necessary chapters in detail, including all necessary explanations.

Business plan outline
for micro-enterprises - Ethiopian application

Help !

Business Plan

1. Full name of the business operator ...................................

2. Address: Woreda.......................... Town ...................

Kebele........................... House no..............

3. Type of the plan/work/business in which the operator is/to be engaged.

........................................................................................

4. Year of the plan: From............................... to ....................

5. Work premises at the disposal of the operator ..................

..........................................................................................

Specify, if there is any problem:

..............................................................................................

6. Yearly sales plan:

Ser. no.

Product/service to be sold, marketed / year

Unit

Qua.

Unit price

Total price

Remark

Total sales

Months during which sales are expected to be high .....................

................................................................................................

7. Equipment currently owned by the operator:

Ser. no.	Type of equipment	Unit of measure	Qua.	Unit cost	Total cost	Remark

	Total cost of equipment

8. Equipment to be purchased by the operator

Ser. no.

Type of equipment

Unit of measure

Qua.

Unit
cost

Total
cost

Remark

Total cost of equipment

9. Yearly raw material requirement:

Ser. no.

Type of raw material

Unit

Qua.

Unit price

Total price

Remark

Total yearly raw material cost

Source of raw material .............................................................

..............................................................................................

10. Other yearly operating expenses (e.g. labour expense, sales expense, depreciation expense, taxe expense etc..)

Ser. no.

Types of expense

Amount of expense in Birr

Remark

Total expense

11. Yearly production/service plan:

Ser. no.

Types of production/service to be produced or rendered

Unit

Qua.

Unit cost

Total cost

Remark

Total cost

12. Financial plan:

Capital requirements	Equity	Loan	Total
Investment capital:
· Machinery + equipment · Furniture + fixture · Business premises · Any other initial and significant outlay
Working capital:
· Salary/wage · Raw material and/or supplies · Rent · Maintenance · Business promotion · Other cash out of the business to meet short-term and recurrent expenditure
Total

13. Yearly profit and loss plan

See Profit + Loss Statement Format: Accounting

Help
to 3 - 12

Help to 13

Accounting

Business plan outline 2 for small and medium enterprises and start ups [ top]

Business plan outline
for small and medium enterprises and start ups

Business plan format for download in Winword Version, busplan-medium.doc 344 KB

Help !

Executive summary

1. Brief Description of the Project

2. Brief Profile of the Entrepreneur

3. Project's Contributions to the Economy

1. Sales and Marketing

1.1 Product description

1.2 Competitors'

1.3 Location

1.4 Market Area

1.5 Main Customers

1.6 Total Demand

1.7 Market Share

1.8 Selling Price

1.9 Sales Forecast

1.10 Promotional Measures

1.11 Marketing Strategy

1.12 Marketing Budget

2. Production

2.1 Production Process

2.2 Fixed Capital

2.3 Life of Fixed Capital

2.4 Maintenance and Repairs

2.5 Sources of Equipment

2.6 Planned Capacity

2.7 Future Capacity

2.8 Terms and Conditions of Purchase of Equipment

2.9 Factory Location and Layout

2.10 Raw Materials Needed

2.11 Cost of Raw Materials

2.12 Raw Materials Availability

2.13 Labour

2.14 Cost of Labour

2.15 Labour Availability

2.16 Labour Productivity

2.17 Factory Overhead Expenses

2.18 Production Cost

3. Organisation and Management

3.1 Form of Business

3.2 Organisational Structure

3.3 Business Experience and Qualifications
of the Entrepreneur

3.4 Pre-Operating Activities

3.5 Pre-Operating Expenses

3.6 Office Equipment

3.7 Administrative Expenses

4. Financial plan

4.1 Project Cost

4.2 Financing Plan and Loan Requirement

4.3 Security for Loan

4.4 Profit and Loss Statement

4.5 Cash Flow Statement

4.6 Balance Sheet

4.7 Loan Repayment Schedule

4.8 Break-even Point (BEP)

4.9 Return on Investment (ROI)

4.10 Financial Analysis

Help to the executive summary

Help to sales and marketing

Help to production

Help to organisation and management

Help to financial plan

Business plan checklist

There is Business Plan Computer Software for small and medium enterprises that helps you to fill complex Business Plans. One of these Business Plan builders is Business Plan Pro 2005 from Palo Alto. Creating and formatting your Business Plan for start-ups or established businesses with 400 samples (bakery, export/import, restaurant, construction etc.) included.

Business plan samples [ top]
The following samples are published by the "Business Owner's Toolkit"

external link www.toolkit.cch.com

A project profile is a limited planning for a extension project within a running business. The following guideline has been edited by the Ethiopian Investment Authority and can be consulted with the necessary explanations on the following webpage:

external link www.ethioinvestment.org\legal\proj_pro_Pre.htm