Business Planning

BJÖRN SCHIMANSKIMANAGING DIRECTORASIAN TRAILS LAOSWORKSHOP IUCN-KUONI-ASIAN TRAILSVIENTIANE, JUNE 2012

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Business Planning

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Business Planning

Decision to commit time, money and effort

Feasibility study;understand the big picture!

Before you start planning your business

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THE PROCESS OF BUSINESS PLANNING

i. Identifying the overall purpose of the businessii. Define a vision for your businessiii. Develop measurable goalsiv. Identify the activities needed to accomplish your objectivesv. Place the activities in proper sequence vi. Identify the resources required to accomplish them

A Business Plan is then created to facilitate development of the enterprise

How to get started

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Executive Summary • Highlights of your business

Company descriptio

n• Mission, values• Products and services

Competition

• SWOT of competitors• Your unique selling point

Marketing plan

• Targeted clients, their expectations

• Demand, size of marketOperations • Daily functioning of the business

Components of a business plan (1/2)

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Management&

Organisation

• Business structure • Key positions• Skills needed, labour market

Finances• Financial statement• Cash flow• Balance sheet

Sustainability

• Social and environmental sustainability• Stakeholder involvement

Contingency planning

• What if?• Alternatives

Components of a business plan (2/2)

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Components of a business plan – time frame

Focus of that period

Component of the period

IdeasStage

DevelopmentStage

ExcellenceStage

1 Executive Summary

2 Product or Service

3 Your team

4 Market and Competition

5 Marketing and distribution

6 Business system and Organisation7 Realisation plan

8 Opportunities and risks

9 Financial planning and funding

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REGULATORY REQUIREMENTS OF A BUSINESS PLAN

i. Register your business► Name► Licences► Compliance with regalation

ii. Premises► Secure your premises► Ensure that premises are compliant with regulation► Premises are physically secure

iii. Employees► Valid employment documents

How to get started on business planning

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Financial Planning & Pricing

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WHY FINANCIAL PLANNING?► Planning to stay in business► Generate enough cash to pay the bills ► Focus on CASH first, then PROFITS and

finally GROWTH► Creating short, medium and long term

financial goals

Financial Planning

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THREE BASIC TOOLSi. Cash flow statementIncome and spending at the time money comes into and out of the business.

ii. Income statementReports the cash in-flows of the business, periodically (Monthly/Quarterly/Annually). Takes into account seasonality.

iii. Balance sheet

Lists values of assets and liabilities of the business, including bank loan;It is a measure of the value of the business, not necessarily profitability; It reveals who owns the value of the business.

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A BUDGET IS A FINANCIAL PLAN► Budgeting helps take better decisions for

the future► It quantifies the expectations regarding

future income, cash flows, financial position► Long and short term planning

Budgeting

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• Annual Budget and Business Plan

• Monthly report and comparison with budget and

forecast

• Top 15 report

• Profit & Loss Report

• Outstanding Report

• Forcast A, B, C

Budgeting example – Finances at Asian Trails Laos

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VALUE IS MORE IMPORTANT THAN PRICE► Cost based pricing► Demand based pricing► Competition based pricing► Dynamic pricing (different price according to

demand, type of customers, time)

Pricing

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A business with potential needs

SUMMARY – What is important?!

a costumer value a market

to be possible & profitable to be innovative

• THANK YOU FOR YOUR ATTENTION!