1. business and industrial

COVER PAGE
INDICATE NAME OF THE BUSINESS
(Top part of page)
INDICATE WHAT THE BUSINESS PLAN HAS
BEEN PREPARED FOR AND THE FINANCIER TO
WHOM IT WILL BE SUBMITTED
(Middle part of the page)
INDICATE THE AUTHOR OF THE PLAN AND THE
CONTACT DETAILS
(Bottom part of the page)
1
TABLE OF CONTENTS (ON ITS OWN SEPARATE PAGE)
EXECUTIVE SUMMARY (ON ITS OWN SEPARATE PAGE)
1.0
BUSINESS DESCRIPTION
1.1
Name of Business
:
1.2
Company Directors
:
1.3
Business Address
:
1.4
Contact Phone
:
1.5
Company Products/Services:
1.6
Company Bankers
:
1.7
Bank Account
:
1.8
Company Documents
:
1.9
Company Lawyers
:
1.10
Company Auditors
:
2.0
COMPANY VISION
3.0
COMPANY MISSION STATEMENT
4.0
BRIEF PROFILE/BACKGROUND INFORMATION OF THE
ENTERPRISE
Let this section be on its own page
2
5.0
ECONOMIC BENEFITS OF THE PROPOSED BUSINESS TO THE
PROJECT LOCATION/COMMUNITY SUCH AS:-
5.1
Employment Creation
5.2
Transfer of Technology
5.3
Transfer of knowledge and skills
5.4
Contribution to the National Treasury
5.5
Provision of an essential good/service
5.6
Inculcating a Culture of Entrepreneurship
5.7
Utilization of locally available raw materials (value addition)
6.0
MARKETING PLAN
6.1
Company Products/Services



6.2

6.3
What is so special about your products/services?(quality statement)
What is your product/service’s competitive advantage?
How do your products/services compare with those of your competitors?
Pricing
Give a convincing statement about your company’s pricing strategies and
what makes your prices appealing
Business Location
Give a brief but detailed description of your business location which should
include the following: Plot Number
 Street/Road
 What structures are on the plot e.g. office space, production rooms,
storage rooms, showrooms and any other?
 Water and electricity installations?
 How strategic is the location for the nature of the business?
 Is the location easily accessible?
6.4

Business Geographical Coverage and Target Customers
What is your business’ geographical coverage (townships, districts,
provinces or countries)?
3

6.5
Who are your target customers? List them if you can and show evidence
of doing business with them by attaching letters of intent or copies of
previous orders, as part of attachments/appendix.
Estimated Sales Volume
TYPE OF PRODUCT/SERVICE
6.6
ESTIMATED SALES VOLUME
(QUANTITIES) PER MONTH
Estimated Market Share
Give a statement on your estimated market share of the total market (in
percentages)
6.7
Company Marketing Strategy
Outline your different Marketing strategies in very brief and possibly bullet form
7.0
PRODUCTION/OPERATING PLAN
7.1
Production / Operating Process
Give a statement of the key steps that are followed from the beginning to the
end, in producing your company products or services
7.2
Fixed Assets to be used in Production and Operations
In form of a brief statement, state what different types of Fixed Assets will be
required for your business. Remember that fixed assets come in four (4)
different types namely; Land and Buildings, Machinery/Equipment and Tools,
Furniture and Fittings and Motor Vehicles.
7.3
Useful Life of Fixed Assets
Type of Fixed Asset
Machinery/Equipment
Furniture & Fittings
Motor Vehicle
Land & Building
Depreciation Rate
4
Estimated Useful Life
7.4
Repairs and Maintenance of machinery/equipment and
availability of Spares
Give a statement on the Repairs and Maintenance of your company assets and
availability of spares for the same
7.5
Source of Machinery/equipment
Give a statement on your source of machinery/equipment and how long it will
take for the same to be delivered to the project site. You may wish to give
reasons why you settled for that source.
7.6
Raw Materials/Stock/ Input Requirements and sources
Give a statement on the various forms of Raw Materials/ Stock/ inputs that your
company will use in its production and the sources of the same.
7.9
Health and Safety Measures
State what you will do to ensure that you comply with Occupational Health and
Safety (OHS) requirements at the work place
7.10 Pre-operating Activities
Example given:
Refurbishing of a building to suit the nature of the business

Identification and evaluation of different suppliers of fixed assets, to compare
prices, terms, quality levels and other business considerations, before
selecting company suppliers

Disbursement of the loan facility to facilitate the purchases of all fixed assets
required in the business

Installation of the various pieces of machines, training of machine operators
and their helpers and trial runs, to ensure machines have been correctly
installed and can be properly used for operations.

Commissioning of production
5
8.0
ORGANISATION AND MANAGEMENT PLAN
8.1
Organisation Chart (see example below):-
8.2
Management and job descriptions (see example below):-
8.2.1 Board of Directors
8.2.2 Management
8.2.3 The Chief Executive Officer
8.2.4 Production and Operations Officer
8.2.5 Marketing and Sales Officer
8.2.6 Finance and Administration Officer
8.2.7 Production Supervisor
8.2.8 Machine Operators
8.2.9 Sales persons
8.2.10
Secretary
8.2.11
Helpers
8.2.12
Driver
8.2.13 Security Guards
8.2.14 Business Experience and Qualifications of the Entrepreneurs
6
8.3
Direct Labour
Tabulate the required Direct Labour for the business e.g :Designation
Production
Supervisor
Machine
operators
Helpers
8.4
Salary/Month
Skills and Experience
2
10
Indirect Labour
Designation
Chief Executive
Officer
Production and
Operations
Officer
Marketing and
Sales Officer
Finance &
Administration
Officer
Sales persons
Secretary
Drivers
Security Guards
8.5
Quantity
1
Quantity
1
Salary/Month
Skills and Experience
1
1
1
2
1
1
2
Staff Motivation
Indicate how you propose to motivate your staff in order to ensure high
productivity-
9.0
FINANCIAL PLAN
9.1
Total Project Cost
ITEM
Fixed assets requirements:Proposed machinery & equipment (8.1)
Proposed furniture & fitting (8.2)
Proposed motor vehicles (8.3)
ESTIMATED COST
7
Proposed land & buildings (premises to be
rented, see 8.4)
Initial working capital requirements:Raw material costs (4.0)
Direct labour costs (5.0)
Indirect labour costs (6.0)
Overhead costs (7.0)
Pre-operating expenses:Rehabilitation of building
Business Plan preparation fees
Cost of installation of machine
Cost of staff training on the use of the machines
Insurance of all fixed assets (estimated at 7% of
all fixed assets)
TOTAL PROJECT COST
Add 5% contingency
Rounded off loan amount required
9.2
Means of Finance
ITEM
Cash equity
Owners’ fixed asset contribution
Loan amount
TOTAL FINANCE
AMOUNT
9.3
Proposed Security (Collateral)
9.4
Analysis of past Financial Statements if yours is an existing
business
9.5
Financial Projections for Five (5) Years
9.5.1
Income Statement
9.5.2
Balance Sheet
9.5.3
Cash flow
8
Appendix I
SUMMARY OF ASSUMPTIONS FOR THE BUSINESS
1.0
PRODUCTION/OPERATING PROGRAMME
1.1.
Working hours per day (see example below) :


1.2
Working days per week (see example below) :


1.3
24 days
Estimated working days per annum:
2.0
Monday to Friday:
8 hour shift
Saturdays:
4 hour shift
Sundays and Public holidays: closed for business
Estimated working days per month (see example below) :
1.4
Morning : from 08:00 hours to 13:00 hours
Afternoon : from 14:00 hours to 17:00 hours
Total working hours per day : 8 hours
280 days (this figure takes account of public holidays)
PRODUCTS/SERVICES
List the different types of products/services that your business produces or
proposes to produce.
3.0
PRODUCTION/ OPERATING OUTPUT
3.1
Installed capacity (full capacity)
Product
specification
Installed
Production
quantities per
Day
Installed
Production
Quantities per
Month
Note: Indicate source of production capacities.
9
Installed
Production
Quantities per
Annum (280 days)
3.2
Capacity Utilization
Indicate what capacity utilization levels you will commence your operations at
and reasons for that capacity (see examples below) :
Effects of the learning curve, given that this is going to be a new unit

Consideration of effects of power outages/ load shedding

Consideration of lapses in the delivery of raw materials from suppliers to an
emerging company

Consideration of market penetration lapses of an emerging company
Indicate the envisaged production figures at the chosen capacity utilization in
year 1 as shown below:Product
specification
4.0
Production
quantities at
70% Capacity
Utilisation (per
day)
Production
quantities at 70%
Capacity
Utilisation (per
annum)
RAW MATERIALS/STOCK/INPUT REQUIREMENTS (See example
below)
ITEM
5.0
Production
quantities at
70% Capacity
Utilisation (per
month)
QUANTITY/MONTH
UNIT COST(ZMK)
TOTAL
COST(ZMK)
DIRECT LABOUR COSTS (See example below)
POSITION
NO. OF STAFF
SALARY PER
MONTH (ZMK)
Production Supervisor
Machine operators
Helpers
TOTAL
10
TOTAL COST
(ZMK)
6.0
INDIRECT LABOUR COSTS (See example below)
POSITION
NO. OF STAFF
SALARY PER
MONTH (ZMK)
TOTAL COST
(ZMK)
Chief Executive
Officer
Production and
Operations Officer
Marketing & Sales
Officer
Finance &
Administration Officer
Sales persons
Secretary
Driver
Security Guards
TOTAL
7.0
OVERHEAD COSTS PER MONTH (See example below)
ITEM
Electricity
Water
Telephone Bills
Office Expenses
Repairs and maintenances
Rentals
Depreciation (see annual depreciation cost under part 9.0
below)
Marketing costs
Fuels and oils
Transportation of raw materials
TOTAL
TOTAL COST
8.0
CAPITAL ITEMS (FIXED ASSETS REQUIREMENTS)
8.1
Machines/Equipment/Tools
Item
Quantity
Unit Cost
11
Total Cost
8.2
Furniture and Fittings
Item
Quantity
Unit Cost
Total Cost
TOTAL
8.3
Motor Vehicles
Item
Quantity
Unit Cost
Total Cost
TOTAL
8.4
Land and Buildings
Item
9.0
Quantity
Unit Cost
Total Cost
DEPRECIATION ON FIXED ASSETS
Item
Book Value
Depreciation Rate
Per Annum
Depreciation Cost
Per Annum
Machinery/Equipment
Furniture & Fittings
Motor Vehicles
Land & Buildings
TOTAL
DEPRECIATION/ANNUM
MONTHLY
DEPRECIATION COSTS
10.0
PRICE LIST AND PROJECTED SALES REVENUE PER MONTH
Product specification
Production
quantities (per
month)
Selling Price per
product
TOTAL REVENUE
12
Estimated Sales
Revenue
11.0
TOTAL PROJECT COSTS
ITEM
Fixed assets requirements:Proposed machinery & equipment (8.1)
Proposed furniture & fitting (8.2)
Proposed motor vehicles (8.3)
Proposed land & buildings (premises to be
rented, see 8.4)
ESTIMATED COST
Initial working capital requirements:Raw material costs (4.0)
Direct labour costs (5.0)
Indirect labour costs (6.0)
Overhead costs (7.0)
Pre-operating expenses:Rehabilitation of building
Business Plan preparation fees
Cost of installation of machine
Cost of staff training on the use of the machines
Insurance of all fixed assets (estimated at 7% of
all fixed assets)
TOTAL PROJECT COST
Add 5% contingency
Rounded off loan amount required
12.0 PRODUCTION/OPERATING COSTS SCHEDULE PER MONTH
ITEMS
Raw materials
Direct labour
TOTAL DIRECT COSTS
COST PER MONTH
Indirect labour
Water
Electricity
Telephone
Marketing
Office expenses
Repairs & Maintenance
Rentals
Fuels/oils
Depreciation
Transport
TOTAL OPERATING COSTS
13
13.0 LOAN REPAYMENT SCHEDULE
LOAN TERMS
Loan amount
:
Loan repayment period
:
Grace period
:
Interest rate applied
:
Monthly/annual instalment
:
Interest calculations
:
PERIOD/YEAR
Year
Year
Year
Year
Year
Year
Principle x time x interest rate
------------------------------------100
PRINCIPAL
OUTSTANDING
1
2
3
4
5
6
14
INTEREST CHARGE