Business Planning
description
Transcript of Business Planning
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!