What is a Business Plan?
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1 Social Entrepreneurship Venture Day Manila 2014 Co-organized by Peace and Equity Foundation Ateneo de Manila University - John Gokongwei School of Management IE Business School BUSINESS PLAN GUIDELINES What is a Business Plan? A business plan is a tool that will help you keep in track and moving in the direction you want to go. A business plan will also serve to help others understand your vision, including suppliers, customers, employees, friends and family. Funding sources such as investors, banks, donor agencies, government agencies, and friends and family will expect a well prepared business plan on which to base their decisions to contribute funds to your business. Outline of the Business Plan Opportunity, Vision, Mission Value Proposition SWOT Analysis Market Analysis and Marketing Plan Operations Management Business Model Financing Requirements and Sources of Funds Six Month Startup or Development Plan Financial Projections
2 Name of the Social Enterprise: Business Plan Summary: 1. What is the social issue/problem your social business idea is addressing? How does it generate social impact and who are your beneficiaries? 2. What is the social business idea that you will use to address the social issue/problem above? That is: What is your product/service? Who are your customers/target markets? How many are they? Why will they buy your products/services? How much are they willing to pay and why? 3. How much income from sales do you expect to make from this social business? (i.e. will your expected income cover your expected costs?, do you expect to make profits? How much?) 4. Tell us about yourself - who are you? Where are you from? Do you have what it takes to turn your idea into a thriving social enterprise? What do you hope to get out of the Venture Day Competition?
3 Description of the Business Plan Components Opportunity, Vision, Mission: Opportunity: provide a quantitative description of the Opportunity for your enterprise and key characteristics of the opportunity. Vision Statement: what is your big vision? What problems are you solving and for whom? Where do you want to be in the future? Mission Statement: create a short mission statement for your enterprise. Your mission statement is a short (one sentence to one paragraph) inspirational statement of the purpose of your venture. Be sure that your mission statement is succinct and content rich, and excites your readers. Social Value Proposition Write a brief statement of how your target customer will benefit from your product/service. Why should they care? SWOT Analysis Strengths: what are the internal assets, resources, capabilities and relationships of your enterprise that will enhance or enable the success of your business? Weaknesses: what are the gaps in internal knowledge, skills and resources that will hamper or impede the success of your business? Opportunities: what are the external conditions and resources that will enhance or enable the success of your business? Threats: what are the external conditions that may hamper or impede the success your business?
4 Market Analysis and Marketing Plan Market Analysis: Available Market: estimate the total number of possible direct beneficiaries for your organization, i.e., how many people could benefit from the value proposition. You can use geographic boundaries (e.g. continent, nation, state) and demographics (e.g. age, gender, social groups) to segment this number. Addressable Market: identify the segment of the Available Market that you are currently targeting, or could reach within a few years. This is the group of potential beneficiaries you can reach with the organizational resources (financial and human) that you have (or plan to have) available. Identify why these potential beneficiaries will consume your product or service, rather than an alternative. Target Market Segmentation: segment, or divide, your customers into different categories. These categories can be anything that will help you to understand specific characteristics of your beneficiaries, how to reach them, and what kind of communication and messaging will convince them to buy your product and/or adopt your services. Some examples of categories are age, education level, income level, location, size of family, or group affiliation (such as an industry or village organization). Marketing Plan: Product: Describe how your product or service has been designed and tailored to meet the needs of your target customer. Describe the key features or attributes of your product/service and enhancements that make your product/service attractive to your customers. Price: explain your pricing strategy and why it will be effective with your target customer. Promotion: explain how you will reach your target customers and inform them of the availability of your product. Place: describe what distribution channel or channels you will utilize in order for your product/ service to be available and accessible your customers. Distribution channel includes direct selling, stationary or mobile carts, retailers, distributors, wholesalers, e-commerce.
5 Operations The operations describe how you will run your business and deliver value to your customers. It describes the processes used to deliver your products and services to the marketplace. Product ventures may include production, outsourcing, purchasing, quality control, transportation, warehouse and shipping, customer and technical support, capital expenditures for equipment and systems, etc. Service ventures may include location, type and size of facility, recruitment and training of employees, hours of operation, computers, equipment and systems, furnishings, etc. Management & Human Resource Requirements Organization Chart: draw an organization chart for your enterprise with the positions of each key employee. Management Team: who are the members of your management team and what are the roles of each member? Board of Directors: will you form a Board of Directors? If yes, provide a description and list of members and roles/responsibilities for your Board of Directors. Business Model Revenue Drivers: identify the key income (revenue) drivers that monetize (fund) your value proposition. It is useful if at least a portion of the funds that you need to operate or scale will be based on income for products or services provided ( earned income ) because earned income reduces your dependence on contributed income (grants and/or fund raising). It is imperative that the earned income be a by-product of producing the products and/or services for your beneficiaries and not be an additional defocusing initiative that would distract you from your primary purpose. Cost Drivers: identify the key expense (cost) drivers that are necessary to create the value you describe in your value proposition, including any fundraising or sales expenses necessary to create your income streams.
6 Financing Requirements and Sources of Funds How much capital do you need to start the business? What are the specific uses of the capital fund needed to start the business? How much working capital do you need to run the business? What are the specific uses of the working capital? The startup capital and working capital combined make up the cost of investment of the business. How will you raise the investment capital you need? How much will come from your own savings? How much will come from the contributions from your family and friends? How much will an outside investor contribute? If you win in this competition, how much of the prize money of P200,000 will you use to start or grow your social business? Please describe how you will allocate the amount to be used for starting or growing your social business? Six Month Start-up or Development Plan Identify the key critical steps with the corresponding schedules you need to accomplish within the next 6 months to get your business up and running. Financial Projections Prepare the following 3-year summary financial projections of your enterprise: Statement of Income and Expense Cash Flow Statement Balance Sheet FORMAT OF THE BUSINESS PLAN Font type and size: Calibri/Arial/Times Roman 11 points Line spacing: 1-2 spaces Margins: 1 inch margin all around (top, bottom, left, right) Maximum pages: not exceeding 20 pages, including attachments
7 References: Writing a Sucessful Business Plan, Stephen Lawrence and Frank Moyes (Deming Center for Entrepreneurship, Leeds School of Business, University of Colorado at Boulder: 2009). Global Social Benefit Incubator (GSBI) 2013 Application Requirements (Santa Clara University, California: 2013). Please submit completed Business Plan not later than November 3, 2014 via to: The Secretariat Social Entrepreneurship Venture Day Manila Address: SEVenture@admu.edu.ph
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