BUSINESS PLAN
A well-developed and written business plan holds little or no surprises for its audience. A good business plan should conform to generally accepted guidelines to form and content. Each section should include specific elements that will clarify your business goals or objectives.

GUIDELINES FOR WRITING A GOOD BUSINESS PLAN
Write an honest plan based on well-documented information.
The write-up should be well written (succinct). Clearly identify product, services, market, founder(s) etc.
There should be no grammatical errors or mistakes.
Report should be easy to read, understandable, accurate and complete.

CONTENT OF A BUSINESS PLAN
1. Executive Summary.
2. Business Description.
3. Product or Service.
4. Market Research and Analysis.
5. Market plan.
6. Manufacturing or Operations.
7. Entrepreneurial Team.
8. Financial Documentation.

COVER PAGE AND TABLE OF CONTENTS
A few elements are not really captured into the main segments of the business plan. These elements do not fall into any of the categories but nevertheless; they are critical to the plan’s success. These elements are cover page and table of contents. The cover page should include:
Name of venture or firm
Date prepared.
Contact person.

1. The Executive Summary
The opening section, called the executive summary, is a synopsis of the proposed enterprise. It is the “tickler” that either captures an investor’s interest or kills all incentives to read further. This section encompasses all that should be in the plan hence it is written last. The executive summary must clearly and briefly explain.
Venture or firm definition
Products/Service defined
Market characteristics summarised
Entrepreneurial team, (describe the founders, key people and their roles)
Financial summary – (describe estimates of revenue and expenses, founders equity, debt, and capital needed).

2. Business Description
This section should describe the company’s origin, objectives and management. The plan should describe how the firm would be organised, who fills which role and what their responsibilities will be. This section should be organized as follow:
Name and location
Firm’s objectives (purpose of the venture and objectives of the founder)
Nature and primary product/service of the business
Description of the distinct competency of the firm
Legal form of the firm or venture.

3. Product / Service
This section of the business plan describes the product or service and points out any unique features. It should explain why people would buy the product or patronise the service. This section should be organized as follows:
Description of product or service
Features of product or service providing competitive advantage
Legal protection – patent e.g. trademark, copyright, etc.
Risks of technical or style obsolescence.

4. Market Research and Analysis.
This is to establish that a market exists or the proposed venture. This is the most difficult part of the plan but the most important. The areas to consider include:
Potential customers. Research should describe customer profiles that include demographic information such as sex, age, family income, occupation and location of potential customers.
Markets. A market exists only when there are quality buyers. NB/. The business plan is a forecast of “future market” not merely those that exist.
Competitors: Analyse how competition is likely to change when the new venture becomes established.
Pricing system.
Methods of distribution

5. Market Plan.
The marketing plan should be the result of meticulous market research and analysis. The market plan describes an entrepreneur’s intended strategy. The sections considered under this are:
Product /service – Quality and reliability, use and how the product/service will be positioned in the growth market.
Pricing system – Pricing method, discounts, quantity and bulk prices, methods to set prices.
Promotional Mix – Strategy of combining appropriate uses of public relations, advertising, displays, events, demonstrations, etc.
Distribution channels – Use of market channels including retailing, wholesale, catalog, telemarketing, personal sales representatives, etc.
Services and Warranties – description of service – after- sale policies, repair services, guarantees, and product warranties.
Marketing leadership – define leadership roles, persons responsible for marketing and sales.

6. Manufacturing or Operation Plan
Explain the type of manufacturing or operating system to be used. Describe facilities, labour, raw materials and processing requirements. The elements considered include:
Operating and manufacturing methods
Description of operating facilities (location, space and equipment)
Quality control methods
Procedure to control inventory and operations.
Source of supply and purchasing procedures.

7. Entrepreneurial Team
Also called the management team identifies key players to active investors – management team and directors. There should be an indication of experience and competence they possess. The following outline is suggested for this section:
Profile of founder(s), their qualifications and roles.
Outside investors or directors, their qualifications and roles
Resource people, their qualifications and roles.
Plan for recruiting and training employees.

8. Financial Documentation
Specifies financial needs and contemplated sources of financing. You should organize this section as follows:
Performa financial statements of five years including income statements, balance sheets, cash flow analysis, cash budgets – monthly for the first year and quarterly for second year.
Break-even analysis of profit and cash inflows
Planned sources of finance

Supplementary materials to the plan should be provided in an appendix. This may include entrepreneurial team biographies, supporting data, professional references, market research studies, photographs of products, facilities and buildings.