This process refers to preparing a plan that leads to implementing and realising a project and includes details on the sales and marketing strategy, technical, organizational, and financial plan. The marketing and sales strategy shows the business concept, strategic framework, and business metrics. The technical plan provides information about the product specification, production program, production technology, area and construction, quality assurance, raw materials, spare parts and factory supplies, operating costs, and technical budget. The organizational plan shows the project team, legal form, location, and the project’s staff costs. The financial plan includes details about the investment cost and funding, revenues, operating costs, product costing, income stamen, balance sheet, cash flow statements, viability testing results, sensitivity analysis, and more. The significance of a business plan reveals the easiest and most effective ways to implement and realise a project, and it gathers all details necessary from the project’s feasibility study.
Step-By-Step Process
- Clarify the feasibility study outcomes and assumptions.
- Sales & Market Plan- Analyse the market and identify the gaps, define the project concept and justification, plan sales, identify the strategic direction and positioning, strategic objectives and initiatives, action plan, KPIs, resources, and metrics (sales, cost of salesforces, market mix).
- Technical Plan- Identify the production program (products and capacities), describe the production technology and cost, describe the production processes and diagrams, factory and machinery layouts, areas and construction costs, and production cost.
- Organizational Plan- Identify the project founding team, project legal form, location, and staff details and costs.
- Financial Plan- Estimate the project investment cost and funding, revenues, operating costs, product costing, income stamen, balance sheet, cash flow statements, viability testing results, and sensitivity analysis.
- Project Schedule- Prepare a project plan showing the milestones, timelines of delivery, and resources.
- Prepare a business plan draft as per the above details and discuss it with your team and experts.
Example
Here is the content table of the business plan for a pharmaceutical manufacturing facility:
- About the Project: incl. document objectives, project concept, project justification, vision, mission, and goals.
- Sales and marketing plan: marketing overview, market analysis, sales plan, and sales strategy.
- Technical plan: Incl. production program, production machinery, production processes, building facilities and area, and cost of production.
- Organizational plan: Incl. team of founders, legal form, organizational structure, key personnel, and staff cost.
- Financial plan: incl. investment costs, capital structure, cost of capital, financial reporting and projection, viability results, viability under risks, and financial ratios analysis.
- Implementation plan: incl. scope of works, project schedule, cost, risk, quality, team, communication, and procurement.
Useful Tips
- Summarize the feasibility results, prepare the business plan, and share discussions with your team and experts.
Things To Avoid
- Avoid guessing works, biased judgement, and assumptions without evidence.
Final Note
This article is sourced from my new book- Your Guide For Preparing An Industrial Feasibility Study. For more information about the book: https://growenterprise.co.uk/book-your-guide-for-preparing-an-industrial-feasibility-study/To register in our newsletter: http://eepurl.com/ggcC29Or email us at: maldawood@growenterprise.co.ukThe author: Munther Al Dawood- Industrial Enterprise Expertwww.growenterprise.co.uk
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