BUSINESS PLAN TEMPLATE - VERSION3.0 | JULY12,2021 - AVODA GROUP
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Version 3.0 | July 12, 2021
Business Plan
Template
This document is designed to be used in conjunction
with AVODA Institute of Entrepreneurship lectures &
workshops.
All rights reserved by AVODA Institute of EntrepreneurshipTable of Contents EXECUTIVE SUMMARY 4 Company Description 4 Problem 4 Solution 4 Why Now 5 Unique Success Factors 6 COMPANY OVERVIEW 7 Ownership 7 History 7 Location 7 PRODUCT(S) 8 Line-up and Description 8 Development Roadmap 8 Future Products 8 INDUSTRY ANALYSIS 9 Market Size & Segmentation 9 Market Trends 10 Target Customers 10 Customer needs 10 COMPETITIVE ANALYSIS 11 Competitive Comparison 11 Competitive Advantage 11 MARKETING PLAN 12 Brand Positioning and Pricing 12 Promotion 12 All rights reserved by AVODA Institute of Entrepreneurship 2
OPERATIONS PLAN 13 Operational Flow Structure 13 Daily Business 14 MANAGEMENT TEAM 15 Key Company Personnel & Organizational Structure 15 Team Weaknesses 15 Culture 15 FINANCIAL PLAN 16 Projected Fixed Costs 16 Projected Variable Costs 16 Projected Income 17 Projected Cash Flows 18 Cashflow & Net Present Value 18 Funding 19 RISK ANALYSIS & MANAGEMENT 19 GROWTH STRATEGY 21 Key First Year Milestones 21 Key Mid-Term Milestones 21 Key Long-Term Milestones 22 APPENDIX 23 All rights reserved by AVODA Institute of Entrepreneurship 3
EXECUTIVE SUMMARY
Company Description General
Define your company’s product, and/or service in a single declarative sentence.
Problem Val. Creation; Val. Comm. [Strategy, Marketing]
● Describe the pain of the customer.
● What exactly is the need that your product or service will address?
● Describe how the customer addresses the issue today.
All rights reserved by AVODA Institute of Entrepreneurship 4Solution Val. Creation; Val. Comm. [Strategy, Marketing]
● How exactly will your product or service address the customers’ need and pain?
● Demonstrate your company’s value proposition to make the customer’s life better.
Why Now Val. Creation; Val. Comm. [Strategy, Marketing]
● Define recent trends that make your solution possible.
● Why is your product or service going to sell NOW?
All rights reserved by AVODA Institute of Entrepreneurship 5● Why hasn’t it been sold before?
● Why shouldn’t you wait till later to sell it?
Unique Success Factors Val. Creation; Val. Comm. [Strategy,
Marketing]
List the 4-7 reasons why your business will be successful.
1.
2.
3.
4.
5.
6.
7.
All rights reserved by AVODA Institute of Entrepreneurship 6COMPANY OVERVIEW
Ownership General
● What is the legal entity form of your business? (LLC, PLC, etc.) _____________________
● How many owners does the business have? _____________________
● Who owns how many shares? _____________________
History General
● When was the company formed? _____________________
● What stage is it in right now? (Idea stage, seed stage, growth stage, etc.) [Finance]
● What successes did the company have so far? (include all pilot projects conducted
under ABI, market research projects, etc.)
Location General
● Where is the company located? Be specific. ____________________________________
● What makes the location strategically important?
All rights reserved by AVODA Institute of Entrepreneurship 7PRODUCT(S)
Line-up and Description Val. Creation; Val. Comm. [Ideation, Marketing]
● List each of your company’s products/services with a description for each product.
1.
2.
3.
4.
Development Roadmap Val. Creation; Val. Comm. [Strategy, Ops. &
Projects Mgt]
● What will your team accomplish by _______
● What will your team accomplish by _______
● What will your team accomplish by _______
Future Products Val. Creation; Val. Comm. [Ideation, Strategy,
Marketing]
Describe:
● Possible future products, services, and opportunities.
All rights reserved by AVODA Institute of Entrepreneurship 8● When you envision you will be able to roll these out?
● Why will you be able to roll them out by that time?
● What are the main obstacles to rolling them out by that time?
● What are your solutions to these obstacles?
All rights reserved by AVODA Institute of Entrepreneurship 9INDUSTRY ANALYSIS
Market Size & Segmentation Val. Creation; Val. Comm. [Strategy,
Marketing]
Describe the market and its size.
● Who are your main customers? Where do they live?
● How much income do they have per month? _____________________
● What is their age range? _____________________
● What is their gender? _____________________
Market Trends Val. Creation; Val. Comm. [Strategy, Marketing]
Explain current market trends and growth opportunities.
● Why is the people group you mentioned above your market?
● What have they been doing, buying, saying, or thinking recently to make you think they
will buy your product/service?
All rights reserved by AVODA Institute of Entrepreneurship 10Target Customers Val. Comm. [ Marketing]
Further describe the demographic and psychographic make-up of your customer. Be detailed.
Customer needs Val. Comm. [ Marketing]
Further describe what your target customers’ needs are. Be specific. What is the customer
missing at the moment? Why are you sure they are missing it?
COMPETITIVE ANALYSIS
Competitive Comparison Val. Creation; Val. Comm. [Strategy,
Marketing]
● Who will be your company’s main competitors in Uganda? (incl. name, years in
business, number of employees, estimated annual profit or revenue, etc.)
1.
2.
3.
4.
● Who will be your company’s main competitors in southern and eastern Africa, if any?
(incl. name, years in business, number of employees, estimated annual profit or
revenue, etc.)
All rights reserved by AVODA Institute of Entrepreneurship 111.
2.
● Who will be your company’s main competitors globally, if any? (incl. name, years in
business, number of employees, estimated annual profit or revenue, etc.)
1.
2.
Competitive Advantage Val. Creation; [Strategy]
● Compare your products/services to the industry’s leading products of that category. In
other words, explain your advantage compared to each of your competitors’. Be
specific and use numbers (i.e. do not simply write: “our product will be cheaper”, “our
product will be better quality”, etc.).
MARKETING PLAN
Brand Positioning and Pricing Val. Creation; Val. Comm.
[Strategy, Marketing]
● Are you positioning your product as:
o A high-quality / low volume / high priced product?
o A lower-quality / high volume / lower-priced product?
o Other (explain):
All rights reserved by AVODA Institute of Entrepreneurship 12● How are you going to achieve this brand image?
Promotion Val. Comm. [Marketing]
● How are you going to let people know about your product? Be specific and practical
(i.e. do not just say “through word of mouth, social media, newspapers, radio, etc.”).
● How much will this cost you per month? _____________________
OPERATIONS PLAN
Operational Flow Structure Val. Creation; [Ops. Management]
Describe in detail every step of your value chain:
● Where do you get your supplies and raw materials? How often? How much or how
many? How long will it take for them to arrive to you?
All rights reserved by AVODA Institute of Entrepreneurship 13● Describe every step needed between when you get your supplies or raw materials and
when you deliver it to your customer. How long will each step take? And therefore how
long will the entire length of your operations be? How often will you repeat this cycle?
● What is your maximum possible output per month, based on this operations plan?
● Where can customers buy your product? How will you get your product to your
customers?
● How much will this operational flow cost you per month at 50%, 75%, or 100% of
maximum output?
o At 50% _________________________________
o At 75% _________________________________
o At 100% _________________________________
All rights reserved by AVODA Institute of Entrepreneurship 14Daily Business Val. Creation; [Ops. Management]
List the key operational processes which need to be accomplished on a daily basis. Be
specific. Who will do what each day, at what time, and how will their performance be
measured?
Process 1:
Process 2:
Process 3:
Process 4:
Process 5:
All rights reserved by AVODA Institute of Entrepreneurship 15MANAGEMENT TEAM
Key Company Personnel & Organizational Structure
Val. Creation; [Ops. Management, Org. Management]
Describe your personnel and why they are qualified, and what they are responsible for.
Personnel 1:
Personnel 2:
Personnel 3:
Team Weaknesses Val. Creation; [Ops. Management, Org.
Management]
Identify your team’s weaknesses and indicate who you need to hire.
Culture Val. Creation; [Ops. Management, Org. Management]
Briefly explain your company’s culture/values, and why they will help to achieve success.
All rights reserved by AVODA Institute of Entrepreneurship 16FINANCIAL PLAN
Projected Fixed Costs Value Capt. [Finance]
What are your FIXED costs, and how much do each of them cost per month?
Fixed Cost 1: Fixed Cost 9:
Fixed Cost 2: Fixed Cost 10:
Fixed Cost 3: Fixed Cost 11:
Fixed Cost 4: Fixed Cost 12:
Fixed Cost 5: Fixed Cost 13:
Fixed Cost 6: Fixed Cost 14:
Fixed Cost 7: Fixed Cost 15:
Fixed Cost 8: TOTAL/MONTH:
Projected Variable Costs Value Capt. [Finance]
What are your VARIABLE costs, and how much do each of them cost per month? In the
“Monthly Range” section, indicate an estimated range for your variable costs.
Variable Cost 1: Variable Cost 8:
Variable Cost 2: Variable Cost 9:
Variable Cost 3: Variable Cost 10:
All rights reserved by AVODA Institute of Entrepreneurship 17Variable Cost 4: Variable Cost 11:
Variable Cost 5: Variable Cost 12:
Variable Cost 6: Variable Cost 13:
Variable Cost 7: Monthly Range:
Projected Income Value Capt. [Finance]
How much will the price (or average price, if prices will vary) of your products be? How many
units of each product do you estimate you will be able to sell per month? Be sure to note both
the number of units you will sell and the total shilling amount you will sell. If you think your
sales will increase, provide an explanation about why you think this is so (NOTE: Be specific.
Do NOT write “because more people will hear about my product”, “because I will be able to
produce more”, etc. Rather, write about any distributional changes or campaigns you have in
mind).
Product 1
Unit Price: ______________ Estimated sales (units/shillings) in 1st
month:__________/___________
o Will sales grow month by month? If so, why?
______________________________________
Product 2
Unit Price: ______________ Estimated sales (units/shillings) in 1st
month:__________/___________
o Will sales grow month by month? If so, why?
______________________________________
Product 3
All rights reserved by AVODA Institute of Entrepreneurship 18Unit Price: ______________ Estimated sales (units/shillings) in 1st
month:__________/___________
o Will sales grow month by month? If so, why?
______________________________________
Product 4
Unit Price: ______________ Estimated sales (units/shillings) in 1st
month:__________/___________
o Will sales grow month by month? If so, why?
______________________________________
Projected Cash Flows Value Capt. [Finance]
Use the calculations you have made above to fill in the Net Present Value table below. Use
Uganda’s corporate tax rate of 30% and interest rate of 25%. Sales tax will not calculated in this
table (it is absorbed under item “Variable Costs”).
Today 2019 2020 2021 2022 2023
Sales Revenue
Variable Costs
Fixed Cost
EBITDA
Depreciation & Amort.
Less Depr. & Amort.
EBIT
Interest Payments
Less Interest
All rights reserved by AVODA Institute of Entrepreneurship 19Corporate Tax
Less Corporate Tax
Post Tax Profits
Investments
Accumulated Profits
Discount Rate
Discounted cash flow
Present Value
Net Present Value
Corporate tax rate
Opportunity cost of capital
All rights reserved by AVODA Institute of Entrepreneurship 20Funding Value Capt. [Finance]
Based on the table above, how much money do you need to raise by when? How are you
going to spend the money?
Investment tranche 1:
Investment tranche 2:
Investment tranche 3:
RISK ANALYSIS & MANAGEMENT
Val. Creation; Val. Comm. [Strategy, Marketing]
What are the major risks your are facing? Typical major risks fall into the following categories.
List up to three biggest risks in each categories and how you plan to eliminate or mitigate
them.
● Political Risk
o
o
o
● Market Risk / Industry Risk
o
All rights reserved by AVODA Institute of Entrepreneurship 21o
o
● Competitive Risk
o
o
o
● Legal Risk
o
o
o
● Technological or Design Risk
o
o
o
● Social Risk
o
o
o
● Environmental Risk
o
All rights reserved by AVODA Institute of Entrepreneurship 22o
o
GROWTH STRATEGY
Key First Year Milestones Val. Creation; [Strategy, Ops. Mgt]
First year milestones need to be the most specific.
● Target date of incorporation: ___________________________________________________
● Target date of registration: _____________________________________________________
● Creation of bank account: ______________________________________________________
● Any legal requirements and licenses:
o
o
o
● Target date for receiving first-stage investment: ___________________________________
● Target date when operations are set up and ready for first sale: _____________________
● Target date of first sale (when, to whom, how much?):
______________________________
Key Mid-Term Milestones Val. Creation; [Strategy]
What are the main things you want to and think you are capable of accomplishing from year 2
to year 5? Again, be as specific as possible.
Some good examples would be:
● Entering a new target market (another city, country, people group, etc.)
All rights reserved by AVODA Institute of Entrepreneurship 23● Releasing a new product or service
● Establishing a new office building
● Strategic partnerships with other people, companies, or organizations
● Reaching a specific performance indicator (revenue target, number of employees,
number of subscribers, number of customers, etc.)
Milestone 1:
Milestone 2:
Milestone 3:
Key Long-Term Milestones Val. Creation; [Strategy]
● Strategically, what kind of direction, purpose, and meaning do you want to see your
company having?
● Also, how will your company bring transformation to your community, industry, or
country?
● What is the Kingdom Impact you want to see your company achieving in the long term?
● Be specific
● Set AGGRESSIVE strategic goals
All rights reserved by AVODA Institute of Entrepreneurship 24All rights reserved by AVODA Institute of Entrepreneurship 25
APPENDIX Include any additional details, such as patent information, customer lists, etc., that help prove to investors that your company is a great investment opportunity. This is also a good spot to add tables and charts that you mentioned before. All rights reserved by AVODA Institute of Entrepreneurship 26
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