putting up an effective business plan

Discussion in 'Starting a Business' started by bangalu, Apr 19, 2013.

  1. bangalu

    bangalu
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    Reading through and getting acquainted with BAF i stumbled on kaimalik's post on "Valuating my startup business ". I kind of have a similar challenge with a new business am starting. Am trying to put a good business plan but am at a loss on how to put in the financial aspect of the plan. Start up monetary requirement, market analysis e.t.c.
    My biggest challenge is that am starting out a new kind of services within the food manufacturing industry here in Jos, Nigeria. I intend to start up an egg production and processing plant producing both liquid and dried egg products. Since we will be the only facility of its kind in our immediate environment, its difficult filling in the some aspects of my business plan.
    I have spoken with some potential investors and with positive response but i cant seem to finish the business plan the way i would like. Am open to suggestions please.
     
  2. Mark T

    Mark T
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    Hmm..

    One thing I can share [since I don't have any exact idea of what your business plans are] is that you have to make sure that you have a solid contingency plan that will support your main business plan if ever it didn't work the way you expected it. This will help your business continue to operate [though there are some losses to be expected] but through having a plan B you are able to fill the gaps that as a result of your first plan.

    You said that you will be the first to manufacture in your target environment / market and it is very difficult since you will have to rely on your own business model and will have to take risks now and then.
     
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  3. StarBC

    StarBC
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    I agree with Mark T. It's very common to create several scenarios for your business. Because your biz plan is mostly to attract investors it's important to show how & why your product will be sold, why your customers will choose you, so your potential investors can see they will get their piece of a pie. Look at your competitors in your country and worldwide, at their company structure, etc, make some market research, is your industry profitable in your country? nationwide? Which direction this industry is going? How much money will you need to maintain your company (building, equipment, etc.), to advertise (and how to advertise - online, tv, printed materials, word of mouth), how are you planning to increase your profit and so on.
     
  4. Rocky

    Rocky
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    When you think or a financial plan there are two essential things you need to consider the cash inflow and the cash outflow.

    The Cash inflow would be the amount of money you would need to start your business and keep it operational.
    For this you need to assess the capital investment which would include the assets like machinery and building etc. Then the working capital for running the plant on a daily basis.
    You need to assess the demand for planning on the production capacity which would help you determine you requirements.

    After this, you can assess the Cash outflow. In simply terms what you would make from what you sell. This would include the initial investment and you need to calculate the break even point for convincing the investors that your plan is viable as well as profitable.


    Hope you have an idea of it now.
     
  5. Fergal

    Fergal
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