BUSINESS PLAN GUIDE FOR ERFP APPLICATION

Transcription

1 BUSINESS PLAN GUIDE FOR ERFP APPLICATION SUGGESTED DOCUMENT LAYOUT 1 Project Name 1.1 Project Description 2 Applicant 2.1 Background description 2.2 Location 2.3 Funding Requirement 3 Sector 4 Objectives 4.1 Vision 4.2 Justification 5 Environmental Benefits 6 Material and Financial Project Implementation Schedule 7 Contractors and Suppliers 8 Marketing Plan 8.1 Industrial Analysis (SWOT analysis, competition, market segments/niche) 8.2 Marketing Strategies (Product Strategy, Pricing, promotional strategy, etc.) 9 Financing Sources 10 Financial Data 10.1 Financial Segment 10.2 Sales projection and operating costs 10.3 Income projections, profit and loss 10.4 Breakeven analysis 11 Applicant Current Financial and Investment Liabilities 12 Management Plan 12.1 Organisational structure (management and personnel, experience and technical ability, ownership structure, strategic alliance) 13 Risk Management 13.1 Risk Identification (business or industrial risk, management risk, financial risk) 13.2 Risk Management (Risk reduction and elimination mechanism, risk transfer) 14 Developmental Impact 14.1 Stimulation of targeted sector 14.2 Projected job creation 14.3 Empowerment impact (skills transfer, capacity building) 15 Applicant Declaration 16 Appendices 1 P a g e

2 1. PROJECT NAME The project name should be as brief as possible limited to a single sentence and clearly define the main undertaking presented in the Application. 1.1 Project Description Depending on the project scope, the project description should be comprehensive detailing project activities in the context of the Agribank ERFP financing. The project description should also ensure an indication of the current project status 2. APPLICANT Please specify the name and address of the Applicant this should be the main Investor and its legal status. The name and title of the person authorised to manage the project on behalf of the Applicant as well as his/her telephone and fax numbers should also be provided. Please specify the name of the town or village and the name of the plant or facility where the project is to be implemented. If the project covers a larger area, please specify the name of the municipality, district, and region. 3. AGRICULTURAL SECTOR Please indicate the relevant sector and division appropriate for the Application. If the project involves more than one sector, please indicate the primary and other sectors. Sector Division Primary (Please tick) Secondary (Please tick) 4. PROJECT OBJECTIVE AND JUSTIFICATION 4.1) Vision Please clearly and concisely state the project objective or, if the project is aimed at more than one goal, please specify all objectives, but indicate the main one. The objective(s) should be presented in terms of changes in environmental conditions that are to be achieved as a result of the project. In a short summary specify the intend results of the project (vision) 4.2) Justification The Application should justify how the project meets the funding requirements of the Agribank ERFP. Why is the Agribank the ideal financier to support the project as opposed to other financial institutions? 5. ENVIRONMENTAL BENEFITS Using a table format, data must be presented on the measurable environmental benefits expected as a result of project implementation. The expected approximate date of achieving the planned environmental benefit (after completion of the system start-up stage) should also be specified under the table. 2 P a g e

3 6. MATERIAL AND FINANCIAL PROJECT IMPLEMENTATION SCHEDULE Please provide a complete project implementation schedule (including the preparatory stages), prepared in the form of a table as shown below: Item Task Date of Date of Cost N$ Financial Progress % Financing source N$ Commencement Completion a. Work completed b. Work in progress c Work planned Total cost 7. CONTRACTORS AND SUPPLIERS If the Applicant has already selected specific contractors or suppliers (at the project design or implementation stage), the names of these contractors and/or suppliers should be specified. Moreover, the method of their selection should be described (direct purchase, public or limited invitation to tender addressed to international, domestic, or local bidders, etc.), and the records on the selection of the contractors and/or suppliers (or reports of the tender selection procedure) issued by the tender selection committees should be attached to the Application. 8. MARKETING PLAN 8.1) Industrial Analysis (SWOT analysis, competition, market segments/niche) Gaining an advantage in the market is the key to success and even survival. Putting it simple, the industry analysis is a report that guides companies on their business strategy. Industry analysis includes reviewing the economic, political, and market factors influencing the manner in which the industry develops. Most important factors can involve the power exerted by the buyers and suppliers, the possibility of fresh market entrants, and the condition of competitors. 3 P a g e

4 8.2) Marketing Strategies (Product Strategy, Pricing, promotional strategy, etc.) Demonstrate how planning and execution of the concept, pricing, promotion, and distribution of ideas, goods, and services is designed. Describe the different interrelated components of the project (marketing mix). 9. PROJECT FINANCING SOURCES A list of all sources of financing to cover the project costs should be prepared in a table format as shown below. Project Financing Funding Sources Own Funds: Other Loans: Disbursed in the Years: 20XX (N$) Financial Resource Plan Committed Planned Total Share (%) Other Grants: AGRIBANK Loans: Total 10. FINANCIAL DATA; DESCRIPTION OF PROJECT OPERATIONS The project s financial modelling or forecasts should be submitted in both electronic and hard format for Agribank s review. It should also review the current, if any, operator of the project facilities and the legal status of the unit that will bear the costs of operating the project facilities. It should in addition of reviewing the scope of services of the operator, also review the major customers and method of pricing the services provided. The following elements should be covered in the financial projections: a. Operating costs The anticipated costs of operating the project facilities after the project is completed should be presented in annual terms. b. Revenues from operating the project facilities The calculation of anticipated revenues to be generated by the project after the project facilities are put into service should be presented in annual terms. The revenues forecast should be presented in terms of quantities and values and describe future potential customers, 4 P a g e

5 c. Cash flow forecast for the project A cash flow forecast table should be presented. The table should be compiled for the project implementation and operating stages, for a time horizon covering the period until all loans contracted, if any, are fully repaid or the period of at least 5 years of the project facilities being in service, whichever is longer. 11. APPLICANT CURRENT FINANCIAL AND INVESTMENT LIABILITIES The relevant data and information on the applicant s financial and investment liabilities must be presented to the Bank. 12. MANAGEMENT PLAN 12.1 Organisational structure (management and personnel, experience and technical ability, ownership structure, strategic alliance) The Management Plan section describes your management team and staff and how your business ownership is structured. A convenient way to organize the Management Plan section of your business plan is to break it into sections detailing: Ownership Structure, Internal Management Team, External Management Resources, and Human Resources Needs. 13. RISK MANAGEMENT 13.1 Risk Identification (business or industrial risk, management risk, financial risk) Identify the internal and external threats that may stand the way of achieving planned results. The major challenges are those that may adversely affect the company s financial condition, forecast financial results and liquidity Risk Management (Risk reduction and elimination mechanism, risk transfer) Defining areas Where is the biggest risk, what will be the risk (indicators), how are you going to monitor the risk during the operation, what concrete activities to deal the risk? 14. DEVELOPMENTAL IMPACT 14.1 Stimulation of targeted sector 14.2 Projected job creation (quantify how many jobs will be sustained and how many new ones will be created, the types of jobs as well) 14.3 Empowerment impact (skills transfer, capacity building) 5 P a g e

6 APPLICANT DECLARATION The signatures of the Applicant s representatives responsible for preparing and submitting the Application (found on the last page of the Application and shown in these Instructions ) demonstrate that the Application for aid has been formally submitted to the Agribank and, at the same time, constitute a declaration that all information provided is true and accurate. DECLARATION I hereby declare that all data provided in the Application for ERFP Funding are true and accurate. I also declare that if a loan is awarded, it will be used exclusively for the purposes as specified in the Application in accordance with the contract concluded with the Agribank as stipulated in the Loan Agreement. Person who prepared the questionnaire personal data/stamp/signature Person who submitted the questionnaire personal data/stamp/signature Date and signature Date and Signature EIF S RESERVATIONS, REQUIREMENTS, AND GENERAL REMARKS 1 The information and data of any kind provided will be exclusively used by the Agribank for the purposes of evaluating the project in order to make a decision on providing financial aid to the project in the amount requested. The Applicant may additionally claim confidentiality of some of the information provided due to its commercial importance. 2 Agribank will only review Applications that are complete, i.e., where all the information required has been provided and all documents required have been submitted. 3 Before any Application is submitted to the relevant committees for consideration, it will be verified by the Bank in accordance with the ERFP s environmental, technical, and economic criteria. If any significant discrepancy is found between the data provided in the Application and the actual status, the Application review process will be terminated. 4 Agribank may propose that the Applicant introduce changes to the project, making further review of the application contingent on the Applicant s acceptance of this proposal. This may apply to the scope as well as the technical and organisational details of the project in that portion which is to be supported by the Bank, and in particular to the planned selection of contractors and suppliers within the scope of the project tasks to be financed by the Agribank. 6 P a g e

7 CHECKLIST (Information required on all Loan Applications) 1 Application Form / Cover Letter 2 Comprehensive Business Plan including 3 5 year cashflow projections 3 Feasibility study, new project 4 Environmental Impact Assessment (EIA) (If applicable) 5 Past Financial Statements/Latest Managements: Balance Sheet, Income Statement, Cashflow Statement (only for existing businesses) 6 Business Registration Documents: Sole Proprietor, Close Corporation, Public and Private Company, Trust etc.) 7 Certificates of Good Standing: Social Security Commission & Inland Revenue (If applicable) 8 Certified copy of ID/Passports of shareholders/members/partners 9 Certificate of Fitness from Municipality (proclaimed areas/ if applicable) 10 Certified copy of Marriage Certificate & spouse ID (if applicable) months business bank statements (if applicable) months personal bank statement(s) of proprietor/shareholders/members/partners 13 Personal balance sheet (including income & expenditure statement) of proprietors/members/shareholders/partners 14 CV s/profiles of proprietor/members/shareholders/partners/key personnel 15 Quotations of assets to be financed e.g. vehicles, machines, equipment etc 16 Valuation report of property (if applicable) 17 Letters of Intent/Agreements/Memorandum of Understanding Yes No N/A Note: Agribank reserve the right to seek expert opinions on your application. 7 P a g e