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 business

ii. Define a vision for your business

iii. Develop measurable goals

iv. Identify the activities needed to accomplish your objectives

v. 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 market

Operations • 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 Organisation

7 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 TOOLS

i. Cash flow statement

Income and spending at the time money comes into and out of the business.

ii. Income statement

Reports 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!