1.

Introduction to Business Planning

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Definition of a Business Plan

A business plan is a written document that outlines a business's goals,

strategies, market analysis, organizational structure, financial projections,
and risk management plans.

Key Points:

It provides a roadmap for the business.

It helps entrepreneurs stay focused on their goals.

It is essential for attracting investors and securing funding.

Example:

If you're opening a retail shop, your business plan will outline what products
you’ll sell, who your customers are, and how you’ll generate profits.

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Importance of a Business Plan

1. Clarifies Business Goals:

Helps the entrepreneur define short-term and long-term goals.

2. Attracts Investors and Lenders:

A well-prepared business plan shows investors that the business idea is

viable and worth supporting.

3. Guides Decision-Making:

It provides a clear strategy for managing the business.

4. Identifies Risks and Solutions:

Helps the entrepreneur anticipate potential challenges and prepare solutions.

Example:

A business plan can help a bakery owner identify competition in the area and
develop a marketing strategy to stand out.

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Types of Business Plans

1. Startup Business Plan:

Created by new businesses to attract investors and outline the path to

success.

2. Operational Business Plan:

Focuses on internal business operations, including processes and

responsibilities.

3. Strategic Business Plan:

Long-term plan outlining goals and strategies for growth.

4. Growth Business Plan:

Created by existing businesses looking to expand products, services, or

markets.

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Here are brainstorming questions related to the Introduction to Business

Planning that can be used for group discussions or interactive sessions:
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General Questions:

1. What do you think makes a business plan effective?

2. Why do some businesses succeed while others fail?

3. How can a business plan help an entrepreneur avoid failure?

4. Have you ever seen or created a business plan? If yes, what did you learn
from it?

5. What are the key differences between a good business idea and a
sustainable business plan?

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Definition of a Business Plan:

1. How would you define a business plan in your own words?

2. Why do you think it’s important to have a business plan before starting a
business?

3. Can a business succeed without a plan? Why or why not?

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Importance of a Business Plan:

1. What do you think is the most important part of a business plan?

2. How can a business plan attract investors or lenders?

3. How does a business plan help in managing risks?

4. How can a business plan guide day-to-day business operations?

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Types of Business Plans:

1. Which type of business plan do you think is most useful for small
businesses?

2. How can a startup business plan differ from a growth business plan?

3. In what situations would an operational business plan be needed?

4. How would you adjust a business plan for different types of businesses
(e.g., retail, manufacturing, services)?

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2. Components of a Business Plan – Detailed Breakdown with Brainstorm

Questions

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1. Executive Summary

Definition:

A brief overview of the business, including the business name, mission,

products, and financial highlights.

Example:

“Sunrise Café offers fresh, organic coffee and pastries to customers in Addis
Ababa. Our mission is to provide a welcoming environment with high-quality
products.”

Brainstorm Questions:

1. What should be included in an executive summary to grab an investor’s

attention?

2. Why is the executive summary important in a business plan?

3. How can you make an executive summary clear and concise?

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2. Business Description

Definition:

Describes what the business does, its goals, and what makes it unique.

Example:

“Sunrise Café is a sole proprietorship focused on providing locally sourced

coffee and pastries. Our goal is to promote sustainability and support local
farmers.”

Brainstorm Questions:

1. How can you make your business stand out in the market?

2. Why is it important to include your business goals in this section?

3. What makes a business description compelling?

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3. Market Analysis

Definition:

An in-depth analysis of the industry, target market, and competitors.

Example:

“Our target market is professionals aged 25-45 who are looking for quality
coffee. Our competitors include established cafés in the area, but we
differentiate by offering organic and locally sourced products.”

Brainstorm Questions:

1. Why is it important to study your market before starting a business?

2. How can you identify your target audience?

3. What strategies can you use to stay ahead of competitors?

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4. Organizational Structure

Definition:

Describes the ownership and management structure of the business.

Example:

“Sunrise Café will be owned and managed by the founder, with a plan to hire
a barista and a cashier within the first six months.”

Brainstorm Questions:

1. What roles are essential for running a small business?

2. How can a well-structured team improve business operations?

3. Should a business owner delegate tasks or manage everything alone?

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5. Products and Services

Definition:

Details what the business offers and how it benefits customers.

Example:

“We offer organic coffee, pastries, and catering services for events. Our
products are unique due to their freshness and sustainability.”

Brainstorm Questions:

1. How can a business decide what products/services to offer?

2. Why is it important to know what makes your product unique?

3. How can a business adapt its products to meet customer needs?

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6. Marketing and Sales Strategy

Definition:
Outlines how the business will attract and retain customers.

Example:

“We will use social media marketing, offer loyalty cards, and participate in
local events to promote our brand.”

Brainstorm Questions:

1. What marketing strategies are effective for small businesses?

2. How can a business retain loyal customers?

3. Why is a sales strategy important for revenue growth?

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7. Financial Plan

Definition:

A detailed projection of the business’s financial health, including startup

costs, revenue, and expenses.
Example:

Startup Costs: 100,000 ETB

Monthly Revenue: 50,000 ETB

Monthly Expenses: 30,000 ETB

Profit: 20,000 ETB

Brainstorm Questions:

1. Why is it important to have a clear financial plan?

2. How can you estimate your business’s revenue and expenses?

3. What steps can you take to reduce business costs?

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8. Risk Analysis

Definition:

Identifies potential risks and outlines strategies to manage them.

Example:
“Risks include competition, rising costs, and supply chain issues. We will
mitigate these by building strong supplier relationships and diversifying our
products.”

Brainstorm Questions:

1. What are the most common risks small businesses face?

2. How can a business prepare for unexpected challenges?

3. Why is it important to have a risk management plan?

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3. Steps to Prepare a Business Plan

A well-prepared business plan involves several steps to ensure clarity,

feasibility, and success. Below is a breakdown of each step with explanations
and brainstorm questions to engage your audience.
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1. Conducting Market Research

Definition:

Market research involves gathering information about your target market,

competitors, and industry trends to understand customer needs and market
demands.

Explanation:

Market research helps identify opportunities and potential challenges in the

market. It provides insights into customer preferences, pricing strategies,
and gaps that your business can fill.

Example:

A stationery shop owner conducts surveys and visits local competitors to see
what products are in demand and how to price them.

Brainstorm Questions:

1. How do you identify your target audience?

2. What tools can you use to conduct market research?

3. Why is understanding competitors important?

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2. Setting Business Objectives

Definition:

Business objectives are specific, measurable goals that guide the business
towards success.

Explanation:

Objectives should be SMART (Specific, Measurable, Achievable, Relevant,

Time-bound). They provide a roadmap for business growth and help measure
progress.

Example:

A bakery owner sets an objective to increase monthly sales by 20% within six
months by introducing new products.

Brainstorm Questions:

1. Why is it important to have clear business objectives?

2. How do you set realistic and achievable goals?

3. How can business objectives change over time?

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3. Structuring the Plan

Definition:

Structuring a business plan involves organizing the different sections of the

plan logically and clearly.

Explanation:

A typical business plan structure includes an executive summary, business

description, market analysis, organizational structure, products and services,
marketing strategy, financial plan, and risk analysis.

Example:

A café owner structures their plan to start with an overview, followed by

market research insights, a description of the business, and a financial
forecast.

Brainstorm Questions:

1. What are the key sections of a business plan?

2. Why is a structured plan more effective?

3. How can you ensure the plan is easy to read and understand?

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4. Writing the Business Plan

Definition:

Writing the business plan involves putting all gathered information into a
formal document.

Explanation:

The written business plan should be clear, concise, and persuasive. It should
include realistic projections and actionable strategies.

Example:

A tech startup writes a business plan that includes details on product

development, target market, and a five-year financial forecast.

Brainstorm Questions:
1. What writing style should you use in a business plan?

2. How do you ensure your plan is convincing to investors?

3. What common mistakes should be avoided when writing a business plan?

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4. Practical Exercise: Business Plan Creation

Objective:

This exercise aims to engage participants in the practical application of

business plan concepts by developing a draft plan based on a provided
business idea.

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Step 1: Assign Participants into Groups

Divide participants into groups of 3-5 people.

Assign roles within each group (e.g., Business Owner, Market Analyst,
Finance Manager, Marketing Specialist).

Brainstorm Question:

1. How do you divide roles effectively in a group setting?

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Step 2: Provide a Business Idea

Choose from the following sample business ideas:

1. Local Café – A small coffee shop in a busy neighborhood.

2. Stationery Shop – Selling office supplies, notebooks, and educational

materials.

3. Mobile Repair Service – On-the-go phone and gadget repair.

4. Dry Cleaning Service – A laundry business with pick-up and delivery
services.

Brainstorm Questions:

1. What are the key components to consider for this business?

2. What market challenges might the business face?

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Step 3: Ask Each Group to Create a Draft Business Plan

Each group will draft a plan covering the following components:

1. Executive Summary

2. Business Description
3. Market Analysis

4. Organizational Structure

5. Products and Services

6. Marketing and Sales Strategy

7. Financial Plan

8. Risk Analysis

Sample Questions to Guide Groups:

Who are your target customers?

What products/services will you offer?

How will you promote your business?

What startup costs will you need?

How will you manage risks?

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Step 4: Presentations by Groups

Each group presents their draft plan in 5-10 minutes.

Other participants act as investors or stakeholders, asking questions and

providing feedback.

Evaluation Questions:

1. Is the business plan realistic and achievable?

2. Did the group address market challenges and risks?

3. How well did they present their plan?

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including business plan samples and evaluation forms?

Objectives of the Training

1. Learn what a business plan is.

2. Know why a business plan is important.

3. Understand the main parts of a business plan.

4. Learn how to prepare a business plan step by step.

5. Practice working in teams to create a business plan.

6. Improve your ability to present business ideas.

7. Gain confidence to start your own business.