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MODULE 12

Business Plan Creation

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WARM UP

Time to clap!

Duration: 5 to 10 minutes

This circle exercise is simple, but challenging and very effective for generating focus and alignment in a group. Participants stand in a circle and send a clap around the circle. Each clap involves two members of the group clapping their hands at the same time. The group tries to move the clap around the circle faster and faster with as much synchronization as possible. The exercise gets even more challenging when the “double clap” is introduced and the clap can change direction.

Step 1: The group stands in a circle.

Facilitator notes - Step 3 is very challenging for unfocused, stressed or very new groups. If the group struggles to pass the clap in step 3, consider using the opportunity to debrief by asking the group: “why was it such a challenge to pass the clap when the task became more complex? What would you need as a group to master it?”

Step 2 - One person starts (person A). They turn to the person next to them (person B) and the two clap at the same time while making eye contact, as synced as possible. Person B then turns to person C and they clap at the same time. The clap continues like this around the circle. The group should try to pass the clap more and more quickly with as many perfectly synchronized claps as possible.

Step 3 - When the group has mastered the above, introduce the double clap. When a pair claps twice, the direction of the clap reverses. This presents a challenge, as pairs must non-verbally agree whether to clap once or twice. The group must be highly focused and attentive to each other for the clap to continue smoothly around the circle in this step.

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Module 12

Business Plan Creation

OVERALL OUTCOME

LEARNING OBJECTIVES

A finished business plan, ready to present to potential investors or other stakeholders

Why do we write a business plan?
Understand what should be in a business plan
Noting the data & narratives that are both required and relevant to a business plan
How to present your business plan

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PREPARE

Recap

PRACTICE

Create your own business plan!

THEORY

What is a business plan?

WARM UP

Throw the ball

MODULE 12

What will we do today?

HOMEWORK

Wrap-up and prepare

15 min

BREAK

20 min

60 min

10 min

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RECAP

Product Scope & Market Scope

Photo by Elodie Oudot

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GROUP DISCUSSION

What is a business plan?

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The Next Economy

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A well developed business plan can be a powerful money raising tool and provides a blueprint to gauge future successes.

The process of writing a business plan provides you the skill for thinking through and executing any idea

you have.

You can always go back to your plan and update based on new information.

Why a Business plan?

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Business Concept / Summary
Product or service description
Market & industry analysis
Business model (how will you make money?)
Marketing strategy
Management Summary (HR)
Operational Plan
Financial Plan
Risk Analysis
Business readiness & sustainability checklist

What is in a Business Plan?

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Now, we will create a summary of your business plan which highlights the following key elements:

What is the business model?
How do you intend to make money?
Why now?
Why you?

2 PAGES MAXIMUM!

BUSINESS CONCEPT / EXECUTIVE SUMMARY

This section should be more than just a list of products/services offered by the company. Itʼs a summary of your business plan and it should highlight the key elements. Some investors may also only read your executive summary and decide on that basis whether to read the rest of the plan. The executive summary should focus, on the “what, how, why now and why you?” for the business opportunity. It should explain what separates your product from what exists in the market currently and what specific customer need you are satisfying. You should also be able to explain the business model of the idea-how you intend to make money by offering this product/service and the direct costs involved. It should also present compelling reasons for why this is the time to launch the business venture and why the founders/promoters would be successful. Keep it to 2 pages maximum.

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WHAT

Jojo Juice offers superior cold pressed juices and health benefits to its customers, providing a juice that you can drink every day and never tire of the flavours, samples or taste. Our team will ensure that every juice is cold pressed and full of health benefits for our clients.

HOW�Jojo is open 7 days a week and is a mobile cart that can move around the city thereby ensuring the right location at the right time for its customers.

WHY NOW�As customers have a tough time travelling in the current climate, it is of exceptional importance that they stay healthy and have easy access to healthy food items.

WHY YOU�There are juice bars in the area though none of them are mobile, which means that they cannot visit the university, office buildings and mall all in one day.

EXAMPLE - Jojo Juice

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What is the customer need that you are addressing (shelter; beauty, health; convenience; etc.)? Describe this in under 200 words.
Provide a brief description of your target customer. What do you know about your customer that will make him or her want to pay for your product or service?
Provide a detailed description of your product or service. What does your product do for a buyer with respect to his/her need?
Is there anyone else providing this your product?
If yes, What are the advantages of your product or service over what currently exists in the market?

PRODUCT / SERVICE

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In your estimation, how big is the potential market for your product?

What type of competitors are out there and how is your product a Unique Product is this space?

What are the customer segments in this industry?

MARKET REACH

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What is your companyʼs mission statement?
What is your companyʼs vision statement? Is it Specific, Measurable, Achievable and Time-bound (SMART)?
How will your company make money? Describe how you intend to create income.
Is there any proof of concept that this is a viable venture. Did you develop a prototypes/sales to demonstrate customer interest?
When will your customer pay you?
How do you fund your company if you have to give your customers credit. Where is your working capital going to come from?
What will your gross profit per unit sold be?

BUSINESS MODEL

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How will you price your product? Why?

How will you distribute your product? Why?

How will you promote and communicate information about your product to the target market?

What will be the cost?

MARKETING

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What kind of location does your business need?
Why?
What kind of supplies does your company need?
Where will you get these supplies?
What system will you use to (How will you) process orders?
How will you control inventories (raw materials, work in progress and finished goods)?
How will orders be processed?
How will the product be produced or the services be rendered?

OPERATIONAL PLAN

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Who will be working in the company and what will their responsibilities be?

Draw out your organizational structure.

What legal form of ownership will you use. Sole proprietorship, Partnership, Limited liability company?

THE TEAM

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FINANCIAL PLAN

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FINANCIAL PLAN

How much money will you need to start your business? What will this money be spent on?
Where do you intend to get finances to start your company?

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CONGRATULATIONS

You’ve just created your own business plan!

See this plan as a work in progress, you can update it at any time to keep in your back pocket for any potential investors or interested future sales prospect.

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HOMEWORK

WRAP UP this module

PREPARE for next module