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Hav a business idea bt dnt knw hw to write business proposal.

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Ibrahim K. Chiki, Apr 9, 2011.

  1. Ibrahim K. Chiki

    Ibrahim K. Chiki Verified User

    Apr 9, 2011
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    kwenu wana jf...nina idea za biashara, bt sijui jinsi ya kuandika business proposal. mchango wa mawazo ya jinsi ya kuandaa business proposal. Help mi out hea.
  2. L

    LAT JF-Expert Member

    Apr 9, 2011
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    Business plan comprises of three main components........

    1.Executive Summary - The summary of your business that sells out quickly to the financier, partner, Engels investor, investor or the like

    2. Literature review and technical study ..... describing the business, product/services, location, market and sales, production process, management,Risks, environment etc

    3.Financial plan - detailed accounting including financing plan (equity ratio), balance sheet, cash flows, sales projections, operating costs, sensitivity, return on investment etc

    for a bankable BP ...many details can be added depending on the nature of business and requirements for funding .....
  3. Ibrahim K. Chiki

    Ibrahim K. Chiki Verified User

    Apr 9, 2011
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    Tanx lots.
  4. P

    Prime Dynamics JF-Expert Member

    Apr 9, 2011
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    Mkuu i hope this will help you. I normally use the same whenever i write a business proposal.

    A brief summary (1-2 pages) of the proposal covering:
    - the business
    - the management
    - their experience and cash commitment
    - the forecast results for the coming years
    - the financing requirement

    Followed by detailed information on:
    -the company background
    -the people
    - the company structure, both management and ownership
    - the products
    - the markets
    - the marketing, selling and distribution
    - the manufacturing operation (if applicable)
    the financial data
    the risks

    This section should give:
    - the background to the business, how it was started and by whom
    your personal and business objectives
    a description of your business

    The people who run the business are by far the most important element in any business. In this section bring out, the complementary skills of the team covering design and production; marketing and sales; and finance and administration. If your team is not complete then highlight the areas of weakness and how you propose to address these in future.
    You should refer to:
    - their experience and abilities (including precise job functions)
    - their specific responsibilities
    - their detailed CVs which you should expect to be vetted quite carefully

    Provide a simple organization chart to show:
    - functions and responsibilities
    - directors and non-directors
    - proposed remuneration
    Provide a list of the shareholders, giving:
    - numbers of shares held and percentage holding
    - details of any special rights attached to their shareholding
    - details of any debt or other assistance being given to the company by that shareholder
    If any of the shareholders is a corporate body also listed its shareholders. Give brief details of any other business interests of the management and shareholders.

    Describe the product or service being offered. This description needs to be a concise and understood by a
    reader who is not technically knowledgeable as you are.
    You should:
    - highlight the features, which distinguish your product from the competition
    - say what the benefits are for the end user
    - detail any weaknesses in the product and explain how these might be overcome
    - show what needs you are fulfilling or what problems you are solving for your customers
    If you are selling a product manufactured by someone else, describe the agreement that you have with the manufacturer. Finally, no product has an indefinite life and you will need product ideas or ways of extending the life of the product. Express these ideas briefly.

    In this section you should describe the results of the work that you have undertaken to establish the market potential for your product.
    You should:
    - quantify the markets and identify relevant trends
    - describe the market share, which you are aiming for, and the timescale to achieve it
    - list existing or potential customers and ideally their current suppliers
    - if possible, include letters from potential customers expressing their interest in your product
    - state who your competitors are
    - list the strengths and weaknesses of your product compared with your competitors (including price Comparisons)
    - describe how you think your competitors will react to your increasing market share

    The results of your marketing will show from the previous section and will have identified:
    - who your potential customers are
    - what their needs are
    - the price they are prepared to pay
    - the competition you have to beat
    You will need to add to this:
    - a description of the buying process in your chosen market place
    - how you are going to reach your potential customers?
    - what the process of selling will be, for example, direct mail, telesales?
    - who will be doing it - internally or recruiting sales staff?
    - any promotional plans that you have, such as advertising or PR
    - how soon will you expect results?

    In this section briefly explain the operation:
    Describe the premises, plant and equipment you will need
    - if the technology is new mention what plans you have to get the process working reliably
    - before going into full scale production
    - if you intend using subcontractors state who and why
    - if installation or on site commissioning is necessary who will do it?
    - describe how you will control the quality
    - say how you will cope with any hazardous products or processes
    - highlight any element of your operation which is different to your competitors and whether this is a strength or weakness
    - detail the critical lead times for supplies and how many sources there are
    - highlight the areas where capacity constraints might apply and how quickly output can be increased or decreased
    - highlight likely problem areas

    This section should be based upon information provided by you and your team but may need input from an accountant or other experienced professional. The main objective of this section is to show the financial performance in recent years and projections for the business. Projections should cover the loan period, with the first year or two, in more detail than the others. Revenues, margins and costs should be shown on a comparable basis, so trends can be clearly seen.
    It is essential to produce forecast:
    cash flow statements
    balance sheets
    profit and loss accounts
    comment on any significant movements in historic figures
    On the balance Sheet, fixed movement schedule (fixed assets/depreciation schedule and Membership schedule (share capital, membership)
    Loan Repayment Schedule

    1.For the period of greatest risk, which is usually the first year, the cash flows and profit & loss accounts should be on monthly basis.

    2.The balance sheets need only be annual. Do not forget to detail the assumptions (e.g. sales, prices, volume, inflation, growth, and exchange rates, etc.) on which these projections have been based.

    3.With support of financial ratios, provide an analysis of historical performance of the business for the last 3-4 years, giving specific reasons for deviation below (if so) sector standards.

    4.You should also treat the forecasts to a sensitivity analysis, making some further assumptions, which would vary the outcome of your plans. Choose three or four major variables and show the results in summary form concentrating on the timing, volume, gross margin and credit given and show how these changes affect the Break-even levels. Also discuss the management information systems that you propose to use with details of accounting systems and controls.

    Detail and explain:
    - Credit Management Policies, penalties, interests, discounts rebates etc.
    Bad Debts Provisions and write off policies
    Receipt and debtors forecasts
    Account receivables (aging) on bases of 30, 60, 90, 180 and 0ver 180 days.
    Any outstanding account at legal stage and predicted outcome

    10.THE RISKS
    Identify what the main threats in the marketplace and weaknesses in the business are.
    Examples of threats would be:
    - competition
    - changing government policy
    And weaknesses in your businesses may be:
    - the reliability of a new process or product
    - the difficulty of recruiting key staff
    low barriers to entry


    Finally details of Assets to be pledged as collateral for the loan:
    List of each asset and location (if land and building)
    Indicate whether any encumbrances and if they have been valued, how much is the value?
    Any legal interest by other parties (if ownership is contested, or guarantees attached to it or disputes on demarcation or services)
    Owner of the property or security if not the applicant.
  5. K

    Kichakoro JF-Expert Member

    Apr 9, 2011
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    I hope all those stuff will suffice your need but need to know why writting such proposal as one pointed out is it for financier, management etc. each will have different structure but most components above must be covered.
  6. K

    Kichakoro JF-Expert Member

    Apr 9, 2011
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    unaweza kunipm kama utahitaji msaada wangu (maana ndio kazi nazofanya)
  7. Mgombezi

    Mgombezi JF-Expert Member

    Apr 11, 2011
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    Kwani huwezi kuandika business plan kwa KISWAHILI?. Ingekuwa vyema kama mngepatia mwongozo huu kwa kiswahii.
  8. C

    Caroline Danzi JF-Expert Member

    Apr 11, 2011
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    Ebu wasiliana na huyo jamaa atakufanyia kila kitu.
  9. P

    Prime Dynamics JF-Expert Member

    Apr 11, 2011
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    Mkuu ni ngumu kwangu. Labda jaribu kuufuata huo mwongozo uandike mpagilio wako wa biashara. Pia unaweza kuwafuata washauri wa biashara utapata maelezo mazuri zaidi.
  10. l

    lauti Member

    Apr 11, 2011
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    Marhaba,unaweza kuni PM walau ukanpa hata ideas kadhaa ili na mie nduguyo nineemeke?plz help me