COVER PAGE. INDICATE NAME OF THE BUSINESS (Top part of page)

Transcription

1 COVER PAGE INDICATE NAME OF THE BUSINESS (Top part of page) INDICATE WHAT THE BUSINESS PLAN HAS BEEN PREPARED FOR AND THE FINANCIER TO WHOM IT WILL BE SUBMITTED (Middle part of the page) INDICATE THE AUTHOR OF THE PLAN AND THE CONTACT DETAILS (Bottom part of the page) 1

2 TABLE OF CONTENTS (ON ITS OWN SEPARATE PAGE) EXECUTIVE SUMMARY (ON ITS OWN SEPARATE PAGE) 1.0 BUSINESS DESCRIPTION 1.1 Name of Business : 1.2 Company Directors : 1.3 Business Address : 1.4 Contact Phone : 1.5 Company Products/Services: 1.6 Company Bankers : 1.7 Bank Account : 1.8 Company Documents : 1.9 Company Lawyers : 1.10 Company Auditors : 2.0 COMPANY VISION 3.0 COMPANY MISSION STATEMENT 4.0 BRIEF PROFILE/BACKGROUND INFORMATION OF THE ENTERPRISE Let this section be on its own page 2

3 5.0 ECONOMIC BENEFITS OF THE PROPOSED BUSINESS TO THE PROJECT LOCATION/COMMUNITY SUCH AS:- 5.1 Employment Creation 5.2 Transfer of Technology 5.3 Transfer of knowledge and skills 5.4 Contribution to the National Treasury 5.5 Provision of an essential good/service 5.6 Inculcating a Culture of Entrepreneurship 5.7 Utilization of locally available raw materials (value addition) 6.0 MARKETING PLAN 6.1 Company Products/Services What is so special about your products/services?(quality statement) What is your product/service s competitive advantage? How do your products/services compare with those of your competitors? 6.2 Pricing Give a convincing statement about your company s pricing strategies and what makes your prices appealing 6.3 Business Location Give a brief but detailed description of your business location which should include the following:- Plot Number Street/Road What structures are on the plot e.g. office space, production rooms, storage rooms, showrooms and any other? Water and electricity installations? How strategic is the location for the nature of the business? Is the location easily accessible? 6.4 Business Geographical Coverage and Target Customers What is your business geographical coverage (townships, districts, provinces or countries)? 3

4 Who are your target customers? List them if you can and show evidence of doing business with them by attaching letters of intent or copies of previous orders, as part of attachments/appendix. 6.5 Estimated Sales Volume TYPE OF PRODUCT/SERVICE ESTIMATED SALES VOLUME (QUANTITIES) PER MONTH 6.6 Estimated Market Share Give a statement on your estimated market share of the total market (in percentages) 6.7 Company Marketing Strategy Outline your different Marketing strategies in very brief and possibly bullet form 7.0 PRODUCTION/OPERATING PLAN 7.1 / Operating Process Give a statement of the key steps that are followed from the beginning to the end, in producing your company products or services 7.2 Fixed Assets to be used in and Operations In form of a brief statement, state what different types of Fixed Assets will be required for your business. Remember that fixed assets come in four (4) different types namely; Land and Buildings, Machinery/Equipment and Tools, Furniture and Fittings and Motor Vehicles. 7.3 Useful Life of Fixed Assets Type of Fixed Asset Depreciation Rate Estimated Useful Life Machinery/Equipment Furniture & Fittings Motor Vehicle Land & Building 4

5 7.4 Repairs and Maintenance of machinery/equipment and availability of Spares Give a statement on the Repairs and Maintenance of your company assets and availability of spares for the same 7.5 Source of Machinery/equipment Give a statement on your source of machinery/equipment and how long it will take for the same to be delivered to the project site. You may wish to give reasons why you settled for that source. 7.6 Raw Materials/Stock/ Input Requirements and sources Give a statement on the various forms of Raw Materials/ Stock/ inputs that your company will use in its production and the sources of the same. 7.9 Health and Safety Measures State what you will do to ensure that you comply with Occupational Health and Safety (OHS) requirements at the work place 7.10 Pre-operating Activities Example given:- Refurbishing of a building to suit the nature of the business Identification and evaluation of different suppliers of fixed assets, to compare prices, terms, quality levels and other business considerations, before selecting company suppliers Disbursement of the loan facility to facilitate the purchases of all fixed assets required in the business Installation of the various pieces of machines, training of machine operators and their helpers and trial runs, to ensure machines have been correctly installed and can be properly used for operations. Commissioning of production 5

6 8.0 ORGANISATION AND MANAGEMENT PLAN 8.1 Organisation Chart (see example below):- 8.2 Management and job descriptions (see example below): Board of Directors Management The Chief Executive Officer and Operations Officer Marketing and Sales Officer Finance and Administration Officer Supervisor Machine Operators Sales persons Secretary Helpers Driver Security Guards Business Experience and Qualifications of the Entrepreneurs 6

7 8.3 Direct Labour Tabulate the required Direct Labour for the business e.g :- Designation Quantity Salary/Month Skills and Experience 1 Supervisor Machine 2 operators Helpers Indirect Labour Designation Quantity Salary/Month Skills and Experience Chief Executive 1 Officer and 1 Operations Officer Marketing and 1 Sales Officer Finance & 1 Administration Officer Sales persons 2 Secretary 1 Drivers 1 Security Guards Staff Motivation Indicate how you propose to motivate your staff in order to ensure high productivity- 9.0 FINANCIAL PLAN 9.1 Total Project Cost ITEM Fixed assets requirements:- Proposed machinery & equipment (8.1) Proposed furniture & fitting (8.2) Proposed motor vehicles (8.3) ESTIMATED COST 7

8 Proposed land & buildings (premises to be rented, see 8.4) Initial working capital requirements:- Raw material costs (4.0) Direct labour costs (5.0) Indirect labour costs (6.0) Overhead costs (7.0) Pre-operating expenses:- Rehabilitation of building Business Plan preparation fees Cost of installation of machine Cost of staff training on the use of the machines Insurance of all fixed assets (estimated at 7% of all fixed assets) TOTAL PROJECT COST Add 5% contingency Rounded off loan amount required 9.2 Means of Finance ITEM Cash equity Owners fixed asset contribution Loan amount TOTAL FINANCE AMOUNT 9.3 Proposed Security (Collateral) 9.4 Analysis of past Financial Statements if yours is an existing business 9.5 Financial Projections for Five (5) Years Income Statement Balance Sheet Cash flow 8

9 Appendix I SUMMARY OF ASSUMPTIONS FOR THE BUSINESS 1.0 PRODUCTION/OPERATING PROGRAMME 1.1. Working hours per day (see example below) :- Morning : from 08:00 hours to 13:00 hours Afternoon : from 14:00 hours to 17:00 hours Total working hours per day : 8 hours 1.2 Working days per week (see example below) :- Monday to Friday: 8 hour shift Saturdays: 4 hour shift Sundays and Public holidays: closed for business 1.3 Estimated working days per month (see example below) :- 24 days 1.4 Estimated working days per annum:- 280 days (this figure takes account of public holidays) 2.0 PRODUCTS/SERVICES List the different types of products/services that your business produces or proposes to produce. 3.0 PRODUCTION/ OPERATING OUTPUT 3.1 Installed capacity (full capacity) Product specification Installed quantities per Day Installed Quantities per Month Installed Quantities per Annum (280 days) Note: Indicate source of production capacities. 9

10 3.2 Capacity Utilization Indicate what capacity utilization levels you will commence your operations at and reasons for that capacity (see examples below) :- Effects of the learning curve, given that this is going to be a new unit Consideration of effects of power outages/ load shedding Consideration of lapses in the delivery of raw materials from suppliers to an emerging company Consideration of market penetration lapses of an emerging company Indicate the envisaged production figures at the chosen capacity utilization in year 1 as shown below:- Product specification quantities at 70% Capacity Utilisation (per day) quantities at 70% Capacity Utilisation (per month) quantities at 70% Capacity Utilisation (per annum) 4.0 RAW MATERIALS/STOCK/INPUT REQUIREMENTS (See example below) ITEM QUANTITY/MONTH UNIT COST(ZMK) TOTAL COST(ZMK) 5.0 DIRECT LABOUR COSTS (See example below) POSITION NO. OF STAFF SALARY PER MONTH (ZMK) Supervisor Machine operators Helpers TOTAL TOTAL COST (ZMK) 10

11 6.0 INDIRECT LABOUR COSTS (See example below) POSITION NO. OF STAFF SALARY PER MONTH (ZMK) Chief Executive Officer and Operations Officer Marketing & Sales Officer Finance & Administration Officer Sales persons Secretary Driver Security Guards TOTAL TOTAL COST (ZMK) 7.0 OVERHEAD COSTS PER MONTH (See example below) ITEM Electricity Water Telephone Bills Office Expenses Repairs and maintenances Rentals Depreciation (see annual depreciation cost under part 9.0 below) Marketing costs Fuels and oils Transportation of raw materials TOTAL TOTAL COST 8.0 CAPITAL ITEMS (FIXED ASSETS REQUIREMENTS) 8.1 Machines/Equipment/Tools Item Quantity Unit Cost Total Cost 11

12 8.2 Furniture and Fittings Item Quantity Unit Cost Total Cost TOTAL 8.3 Motor Vehicles Item Quantity Unit Cost Total Cost TOTAL 8.4 Land and Buildings Item Quantity Unit Cost Total Cost 9.0 DEPRECIATION ON FIXED ASSETS Item Book Value Depreciation Rate Per Annum Machinery/Equipment Furniture & Fittings Motor Vehicles Land & Buildings TOTAL DEPRECIATION/ANNUM MONTHLY DEPRECIATION COSTS Depreciation Cost Per Annum 10.0 PRICE LIST AND PROJECTED SALES REVENUE PER MONTH Product specification quantities (per month) Selling Price per product Estimated Sales Revenue TOTAL REVENUE 12

13 11.0 TOTAL PROJECT COSTS ITEM Fixed assets requirements:- Proposed machinery & equipment (8.1) Proposed furniture & fitting (8.2) Proposed motor vehicles (8.3) Proposed land & buildings (premises to be rented, see 8.4) ESTIMATED COST Initial working capital requirements:- Raw material costs (4.0) Direct labour costs (5.0) Indirect labour costs (6.0) Overhead costs (7.0) Pre-operating expenses:- Rehabilitation of building Business Plan preparation fees Cost of installation of machine Cost of staff training on the use of the machines Insurance of all fixed assets (estimated at 7% of all fixed assets) TOTAL PROJECT COST Add 5% contingency Rounded off loan amount required 12.0 PRODUCTION/OPERATING COSTS SCHEDULE PER MONTH ITEMS Raw materials Direct labour TOTAL DIRECT COSTS COST PER MONTH Indirect labour Water Electricity Telephone Marketing Office expenses Repairs & Maintenance Rentals Fuels/oils Depreciation Transport TOTAL OPERATING COSTS 13

14 13.0 LOAN REPAYMENT SCHEDULE LOAN TERMS Loan amount : Loan repayment period : Grace period : Interest rate applied : Monthly/annual instalment : Interest calculations : Principle x time x interest rate PERIOD/YEAR Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 PRINCIPAL OUTSTANDING INTEREST CHARGE 14