Title: BUSINESS PLANNING
Course: INTRODUCTION TO ENTREPRENEURSHIP > Section: BUSINESS PLANNING

10.1 Introduction

We are in our final lesson of Introduction to entrepreneurship. In this lesson, we will learn about a business plan. So far, we have developed several types of plans and models such as business canvas model, we have understood how to use a value proposition model, you have hopefully developed your first product prototype, established ways of protecting your business idea and even gone ahead to provide the structure of your business by establishing at least one legal form of business that you will use to organize your business operations. In this lesson, you will learn how to put all what you have learnt in one neat document that you can present to different stakeholders such as investors that are likely to invest in your business, the bank so that they use it to service your business a loan or even use it for yourself to be able to keep track of the plans you have about your business and the action points that you are to take to ensure you run a successful enterprise. So let us delve deeper to understand what this lesson is all about.

 10.2          Learning Outcomes

By the end of the lesson, you will be able to;

10.2.2        Explain the concept of business planning

10.2.3        Outline the key elements involved in a business plan

10.2.4        Prepare a sample business plan for your business idea

10.1 Introduction

We are in our final lesson of Introduction to entrepreneurship. In this lesson, we will learn about a business plan. So far, we have developed several types of plans and models such as business canvas model, we have understood how to use a value proposition model, you have hopefully developed your first product prototype, established ways of protecting your business idea and even gone ahead to provide the structure of your business by establishing at least one legal form of business that you will use to organize your business operations. In this lesson, you will learn how to put all what you have learnt in one neat document that you can present to different stakeholders such as investors that are likely to invest in your business, the bank so that they use it to service your business a loan or even use it for yourself to be able to keep track of the plans you have about your business and the action points that you are to take to ensure you run a successful enterprise. So let us delve deeper to understand what this lesson is all about.

10.2 Learning Outcomes

By the end of the lesson, you will be able to;

10.2.1       Explain the concept of business planning

10.2.2        Outline the key elements involved in a business plan

10.2.3        Prepare a sample business plan for your business idea

10.2.1 Concept of a Business Plan

So far we have introduced the concept of the business canvas model. One might be wondering, how is the business canvas model then different from the business plan that we are to develop in this lesson. Well, a business model provide to the entrepreneurs a mind plan on how the business will generate profits, the partners they will use, the costs they will incur and whom they will target. Hence the business model is for the entrepreneur to be able to articulate his/her business idea. A business plan on the other hand is a written document that states the business’ operational and financial goals for the future and how it proposes to meet them. A business plan is therefore a future oriented plan that informs the entrepreneur or other stakeholders such as investors, creditors, employees etc. on the future financial and operational goals of the business.

E-tivity 10.2.1 - Concept of a Business Plan

Numbering, pacing and sequencing | 10.2.1
Title | Concept of a Business Plan
Purpose | The purpose of this e-tivity is to enable you to understand the concept of a business plan
Brief summary of overall task
Review the following slide share

https://www.slideshare.net/webgoddesscathy/planning-and-communicating-your-business-concept by Mars Discovery District to understand how to translate your business concept to a business plan

Review this slide

https://www.slideshare.net/adamson/business-planning-for-success by Walter Adamson to understand how the business model, product prototypes are developed to a business plan

Read the notes on

https://ocw.mit.edu/courses/edgerton-center/ec-s01-internet-technology-in-local-and-global-communities-spring-2005-summer-2005/lecture-notes/MITEC_S01S05_e3_business.pdf

Watch this video

 https://www.youtube.com/watch?v=WCGuEYDluHQ to understand how the business plan compares to the business models

Read the following material  https://bit.ly/2SWPzks

from Business for beginners by Frances Mc Guckins to understand the  concept of a business plan

              i.            In a sentence, define the concept of business planning.

            ii.            In a short paragraph, distinguish between a business plan from a business canvas model.

          iii.            Using 5 bullet points, give the five stages that you will go through when developing a business plan.

          iv.            What do you understand by the balanced score card and how is it used in business planning?
Spark |
Individual task
1. Click on the links provided
2. Download the slide share and the book
3. Listen to the video
4. Review the slide share
5. Provide summaries from the video clip
6. Give your answers and summarized notes in discussion forum 10.2.1
Interaction begins
1. Post your answer in the discussion forum 10.2.1
2. Read posted work from 2 colleagues
3. Post at least one comment on their work and give constructive criticism
E-moderator interventions
1. Summarize the threads
2. Give feedback
3. Provide teaching points
4. Close the E-tivity
Schedule and time | This task will take two hours
Next | Elements of a Business Plan

10.2.2 Elements of the Business Plan

We have already understood the concept of business plan and we can be able to distinguish it from the business canvas model. So, what constitutes a business plan? What are the various elements or sections found within a business plan?

 E-tivity 10.2.2 Elements of the Business Plan

Numbering, pacing and sequencing | 10.2.2
Title | Elements of a Business Plan
Purpose | The purpose of this e-tivity is to enable you to outline and summarize the elements of a business plan
Brief summary of overall task
Review the following slide share

https://www.slideshare.net/ljuti/five-essential-elements-of-strategy-40732009 by Lauri Jutila to understand the elements required for any strategy including a business plan

Read the following book from the link below;

http://library.uniteddiversity.coop/Business_Plans/How_to_Write_a_Business_Plan.pdf by Brian Finch to understand the structure a business plan

a)      Identify the main elements within a business plan

b)      Outline a business plan for an organization of your choice
Spark |
Individual task
1. Click on the links provided
2. Download the slide share and the book
3. Review the slide share
4. Outline the business plan elements presented in the book
5. Give your answers and summarized notes in discussion forum 10.2.2
Interaction begins
1. Post your answer in the discussion forum 10.2.2
2. Read posted work from 2 colleagues
3. Post at least one comment on their work and give constructive criticism
E-moderator interventions
1. Summarize the threads
2. Give feedback
3. Provide teaching points
4. Close the E-tivity
Schedule and time | This task will take two hours
Next | Business Plan Samples

10.2.3 Business Plan Samples

By now, you already know the components of a business plan. You can now develop a business plan for your business idea. This lesson will provide you with the various business plans samples that are available for different organizations in various parts of the globe, to enable you develop a business plan for your business.

 E-tivity 10.2.3 -Business Plan Samples

Numbering, pacing and sequencing | 10.2.3
Title | Business Plan Samples
Purpose | The purpose of this e-tivity is to enable you to prepare/develop a business plan for their business idea.
Brief summary of overall task
Read the following book  by Lynn M. Pearce

http://www.untag-smd.ac.id/files/Perpustakaan_Digital_1/BUSINESS%20PLAN%20Business%20Plans%20Handbook%2013th%20Volume.pdf  to review the business plans in the United States

Review the following website and establish the business plans used in different types of ventures

Summarize at least 5 business plans from that book

Prepare a business plan for a business idea of your choice
Spark |
Individual task
Click on the links provided

1. Download the book
2. Analyse the business plans on the website
3. Summarise at least five business plans from the book and website
4. Using information from what you have read, Prepare a sample business plan for a business of your choice
Interaction begins
1. Post your summaries of five business plans on the discussion forum 10.2.3
2. Read what your colleagues have posted and refine your ideas.
3. Post your ready business plan in your portfolio
E-moderator interventions
1. Summarize the threads
2. Give feedback
3. Provide teaching points
4. Close the E-tivity
Schedule and time | This task will take a minimum of two hours
Next | End of semester examination

Cluster

Cluster

Question 1

What does the acronym SMART stand for?

- Suitable, measurable, actionable, rewarded, and timely
- Specific, measurable, actionable, resourced, and timely
- Standardized, measurable, achievable, rewarded, and timely
- Specific, Measurable, achievable, rewarded, and timely

Question 2

What is the definition of an objective?

- A defined specific outcome to be achieved in the long term
- A clear set of goals to be attained given a set number of resourced
- A clearly defined and measurable outcome to be achieved over a specified timeframe
- A set of standard performance agreed by workers and managers

Question 3

Which one  of the following is not included in a business plan?

- Financial plan
- Marketing plan
- Building plan
- PESTLE analysis

10.4 References

1. MaRS Discovery District Follow. (2007, June 08). Planning and Communicating Your Business Concept. Retrieved from https://www.slideshare.net/webgoddesscathy/planning-and-communicating-your-business-concept
2. Adamson, W. (2007, October 26). Business Planning for Success - 5 Essential Steps. Retrieved from https://www.slideshare.net/adamson/business-planning-for-success
3. AltoSoftware, P. (2012, February 06). Business Model and Business Plan. Retrieved from https://www.youtube.com/watch?v=WCGuEYDluHQ
4. Pearce, L. M. (2011). Business plans handbook. a compilation of business plans developed by individuals throughout North America. Detroit, MI: Gale.

Can be downloaded from:

http://www.untag-smd.ac.id/files/Perpustakaan_Digital_1/BUSINESS%20PLAN%20Business%20Plans%20Handbook%2013th%20Volume.pdf

1. Jutila, L. (2014, October 26). Five Essential Elements of Strategy. Retrieved from https://www.slideshare.net/ljuti/five-essential-elements-of-strategy-40732009
2. How to Write a Business Plan (Creating Success): Retrieved from http://library.uniteddiversity.coop/Business_Plans/How_to_Write_a_Business_Plan.pdf
3. Entrepreneurship Seminar 3: Writing Business Plans. (n.d.). Retrieved from https://ocw.mit.edu/courses/edgerton-center/ec-s01-internet-technology-in-local-and-global-communities-spring-2005-summer-2005/lecture-notes/MITEC_S01S05_e3_business.pdf

Event: BUSINESS PLANNING (Lesson opens)