An Introduction to Business Plans

Why is a business plan so vital to the health of your business? Read the first section of our tutorial on How to Build a Business Plan to find out.

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A business plan is a written description of your business's future. That's all there is to it--a document that desribes what you plan to do and how you plan to do it. If you jot down a paragraph on the back of an envelope describing your business strategy, you've written a plan, or at least the germ of a plan.
Business plans can help perform a number of tasks for those who write and read them. They're used by investment-seeking entrepreneurs to convey their vision to potential investors. They may also be used by firms that are trying to attract key employees, prospect for new business, deal with suppliers or simply to understand how to manage their companies better.

So what's included in a business plan, and how do you put one together? Simply stated, a business plan conveys your business goals, the strategies you'll use to meet them, potential problems that may confront your business and ways to solve them, the organizational structure of your business (including titles and responsibilities), and finally, the amount of capital required to finance your venture and keep it going until it breaks even.
Sound impressive? It can be, if put together properly. A good business plan follows generally accepted guidelines for both form and content. There are three primary parts to a business plan:

• The first is the business concept, where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success.
• The second is the marketplace section, in which you describe and analyze potential customers: who and where they are, what makes them buy and so on. Here, you also describe the competition and how you'll position yourself to beat it.
• Finally, the financial section contains your income and cash flow statement, balance sheet and other financial ratios, such as break-even analyses. This part may require help from your accountant and a good spreadsheet software program.

Breaking these three major sections down even further, a business plan consists of seven key components:

1. Executive summary
2. Business description
3. Market strategies
4. Competitive analysis
5. Design and development plan
6. Operations and management plan
7. Financial factors

In addition to these sections, a business plan should also have a cover, title page and table of contents.
How Long Should Your Business Plan Be?
Depending on what you're using it for, a useful business plan can be any length, from a scrawl on the back of an envelope to, in the case of an especially detailed plan describing a complex enterprise, more than 100 pages. A typical business plan runs 15 to 20 pages, but there's room for wide variation from that norm.

Much will depend on the nature of your business. If you have a simple concept, you may be able to express it in very few words. On the other hand, if you're proposing a new kind of business or even a new industry, it may require quite a bit of explanation to get the message across.
The purpose of your plan also determines its length. If you want to use your plan to seek millions of dollars in seed capital to start a risky venture, you may have to do a lot of explaining and convincing. If you're just going to use your plan for internal purposes to manage an ongoing business, a much more abbreviated version should be fine.

What is Business? Meaning

Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.

Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.
All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman.

Definitions of Business

Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants."
According to Dicksee, "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted."
Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods."
Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.

Features of Business

Characteristics or features of business are discussed in following points :-

1. Exchange of goods and services

All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth.

2. Deals in numerous transactions

In business, the exchange of goods and services is a regular feature. A businessman regularly deals in a number of transactions and not just one or two transactions.

3. Profit is the main Objective

The business is carried on with the intention of earning a profit. The profit is a reward for the services of a businessman.

4. Business skills for economic success

Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business.

5. Risks and Uncertainties

Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and theft can be insured. There are also uncertainties, such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman.

6. Buyer and Seller

Every business transaction has minimum two parties that is a buyer and a seller. Business is nothing but a contract or an agreement between buyer and seller.

7. Connected with production

Business activity may be connected with production of goods or services. In this case, it is called as industrial activity. The industry may be primary or secondary.

8. Marketing and Distribution of goods

Business activity may be concerned with marketing or distribution of goods in which case it is called as commercial activity.

9. Deals in goods and services

In business there has to be dealings in goods and service.
Goods may be divided into following two categories :-

1. Consumer goods : Goods which are used by final consumer for consumption are called consumer goods e.g. T.V., Soaps, etc.
2. Producer goods : Goods used by producer for further production are called producers goods e.g. Machinery, equipments, etc. Services are intangible but can be exchanged for value like providing transport, warehousing and insurance services, etc.

10. To Satisfy human wants

The businessman also desires to satisfy human wants through conduct of business. By producing and supplying various commodities, businessmen try to promote consumer's satisfaction.

11. Social obligations

Modern business is service oriented. Modern businessmen are conscious of their social responsibility. Today's business is service-oriented rather than profit-oriented.

 

What is Entrepreneurship and Business Development

An entrepreneur is a person who creates small businesses. Entrepreneurs are calculated risk-takers---they strive to maximize potential of their venture while simultaneously minimizing risk. They are able to recognize opportunities as they arise and create goods or services in order to take advantage of the opportunity before competitors catch on to it. Entrepreneurs may create new products or services, improve on current products or services, or simply find a new way to market existing products or services (Michael Paul, University of Wisconsin)

Entrepreneurship is the process of creating or seizing an opportunity, and pursuing it regardless of the resources currently controlled. The American Heritage Dictionary defines an entrepreneur to be "a person who organizes, operates, and assumes the risk for business ventures.

Related Major Skills

Because they often run new ventures themselves, entrepreneurs must know how to operate every aspect of their business. Typically, this includes the areas of:

• Managing the business on a day-to-day basis
• Advertising, selling, and distributing the product or service (marketing)
• Accounting or keeping financial records for the business
• Hiring personnel to assist with the business
• Production of finished goods or services
• Be non-conformist
• Motivated by achievement
• Have a preference for innovation
• Possess high uncertainty tolerance

KATIBA YA KIKUNDI

     

 KATIBA YA MAKUMBUSHO YOUTH DEVELOPMENT GROUP   

                                      (M.Y.D.G)

1. LENGO LA M.Y.D.G

Kwa hiari yetu wenyewe bila kulazimishwa na mtu sisi vijana wa makumbusho tumeamua kuanzisha kikundi hiki malengo yakiwa ni;

a) Nikufahamiana,kusaidiana,na kushirikiana katika  maisha yetu ya kila siku.

b) Kutembeleana,kujuliana hali  katika shida na raha kama kufiwa,harusi,kuuguliwa na sherehe

     mbalimbali.

c) Kuinua na kustawisha hali ya uchumi  na maisha ya mwanachama kwa njia ya ushauri na pesa

2. SIFA ZA MWANA M.Y.D.G

a)      Ajue kusoma na kuandika

b)     Awe na umri wa miaka 18 na kuendelea na awe raia wa Tanzania

c)      Awe na nidhamu ya M.Y.D.G

d)     Awe tayari kutoa michango yote ya chama na kutii masharti ya M.Y.D.G

e)      Awe na akili timamu

f)       Awe na moyo wa kujitolea na mwaminifu

g)      Awe anatokea makumbusho na maeneo ya karibu

3. WAJIBU WA MWANA M.Y.D.G

a)      Kuhudhuria mikutano yote ya M.Y.D.G

b)     Kulipa ada ya kila mwezi na kwa wakati unaotakiwa

c)      Kulipa michango ya sherehe,Msiba,kwa mda unaotakiwa

d)     Kutoa michango ya mawazo katika M.Y.D.G.

e)      Kushiriki katika matukio yanayowahusu wana M.Y.D.G katika  msiba na sherehe

4. MICHANGO YA M.Y.D.G

a) Kiingilio ni shilingi 3000/=(Elfu tatu)

b) Ada ya mwanaM.Y.D.G kwa mwezi ni shilingi 2000/=(Elfu mbili)

c) Kuchangiana kwa wana M.Y.D.G ni kama ifuatavyo

        i.            Kuoa/kuolewa mwana M.Y.D.G -20000/=(Elfu ishirini)

      ii.            Kupata mtoto -1000/=(Elfu moja)

    iii.            Misiba -3000/=(Elfu tatu)

    iv.            Mwana M.Y.D.G akifa 10000/=(Elfu kumi)

      v.            Kuumwa 10000/=(Elfu kumi)

NB:Mwana M.Y.D.G  akifa au akifiwa  kamati itajadili na chama kitatoa /kuchangia 25000/=(Elfu ishirini na tano) pia mwana M.Y.D.G unashauriwa kutoa taarifa mapema kwenye uongozi husika ili kuweza kujipanga mapema kumsaidia.

5. MAJUKUMU NA KUSAIDIANA KATIKA M.Y.D.G

Mwana M.Y.D.G  akiumwa au kuuguliwa yafutayo yafanyike

a)      Atembelewe na wana M.Y.D.G

b)     Kusaidiwa  na kuchangiwa  ikiwa ugonjwa ni mkubwa endapo ikafikiaakashindwa kufanya shughulizake za kila siku

c)      Kusaidiana kimaisha kwa kila mwana M.YD.G mfano kusaidiana mawazo ya kukabiliana na changamoto za kimaisha,kibiashara na kimaendeleo

6. MIIKO YA M.Y.D.G (SHERIA NA TARATIBU ZA KUFUATA)

a)      Kutotoa taarifa za uongo kwa wana M.Y.D.G au uongozi kwa kutaka kujinufaisha

b)     Fitina,majungu havina nafasi  ndani ya M.Y.D.G.

c)      Kuiba,kupoteza au kuharibu mali ya M.Y.D.G

d)     Kwenda kinyume na katiba ya M.Y.D.G.

e)      Kutotoa siri za M.Y.D.G.

f)       Kila mwanakikundi anatakiwa kuhudhuria  vikao vyote vya M.Y.D.G

NB:Mwana M.Y.D.G akivunja sheria adhabu kali itatolewa  ikiwemo kufukuzwa au kupigwa faini

7. KUTOHUDHURIA VIKAO VYA  M.Y.D.G

a)      Mwana M.Y.D.G  asipohudhuria kikao bila taarifa  atalipa faini 1000/=

b)     Mwana M.Y.D.G akichelewa kufika kwenye kikao bila taarifa  atatozwa faini 500/=

c)      Mwana M.Y.D.G asipohudhuria  vikao vitatu (3) mfululizo bila taarifa atakuwa amejitoa katika M.Y.D.G na Hatolipwa chochote

d)     Kikao kitafanyika mara moja kwa mwezi

8. KUTOLIPA MICHANGO YA M.Y.D.G

a)      Mwana M.Y.D.G asipolipa michango zaidi ya miezi mitatu atakuwa amejitoa kwenye M.Y.D.G.

b)     Mwana M.Y.D.G atakayeshindwa kulipa michango mingine kama vile sherehe atalipa faini ya 1000/= zaidi.

c)      Ni wajibu wa kila mwana M.YD.G  kuchangia kila michango ili kusudio letu la kusaidiana kwenye shida na raha litimie.

d)     KUKABIDHI PESA ZA MISIBA NA SHEREHE

                                 i.            Mwana M.Y.D.G akifiwa au akiwa na sherehe siku ya kumkabidhiwa fedha zake ikiwa anadaiwa madeni yote yatakatwa ndipo atakabidhiwa pesa yake iliyobaki.

9. UONGOZI WA M.Y.D.G

Ø  Mwenyekiti na makamu wake - 2

Ø  Katibu na makamu wake           -2

Ø  Mweka hazina                             -1

Ø  Afisa Habari wa M.Y.D.G           -1

Ø  Wajumbe wa kamati kuu

                    i.            Mwenyekiti/Makamu mwenyekiti

                  ii.            Katibu/Makamu

                iii.            Mweka hazina

                iv.            Wajumbe watakaochaguliwa

10. KAZI ZA VIONGOZI WA M.Y.D.G

        i.            KAZI  YA MWENYEKITI

Ø  Kuongoza  vikao vya M.Y.D.G na kusimamia kikamilifu utekelezaji wa maamuzi ya M.Y.D.G

Ø  Atakuwa msemaji mkuu wa M.Y.D.G

Ø  Atakua ni mtetezi  na misimamizi wa  maamuzi na katiba ya M.Y.D.G

Ø  Kuweka saini nakuidhinisha matumizi ya M.Y.D.G.

      ii.            KAZI ZA  KATIBU

Ø  Atakuwa  mtendaji mkuu wa M.Y.D.G.

Ø  Kuandika na kutunza kumbukumbu za M.Y.D.G.

Ø  Atakuwa mshauri wa M.Y.D.G.

Ø  Ataitisha vikao vyote  vinavyohusu  mfuko wa kikundi baada ya kushauriana na mwenyekiti

    iii.            KAZI ZA  MWEKA HAZINA

Ø  Atawajibika  kupokea na kutunza taarifa  za mapato na matumizi  ya M.Y.D.G.

Ø  Kupokea  michango  ya M.Y.D.G  na kutunza  kumbukumbu za fedha katika M.Y.D.G.

Ø  Kutoa taarifa za mapato na matumizi ya fedha za M.Y.D.G kila mwezi

    iv.            KAZI ZA WAJUMBE

Ø  Kuhudhuria vikao vya kamati ya utendaji

Ø  Kutetea na kusimamia maslahi ya M.Y.D.G.

Ø  Kuchangia michango yote ya chama  na wana M.Y.D.G.

11. KUJITOA AU KUTOLEWA UANACHAMA

a)      Mwanachama atatoa notisi  ya miezi mitatu(3) kabla ya kuacha uanachama

b)     Uanachama utakoma  pale tu mwanachama anapofariki na chama kitatoa pesa shilingi 25000/=(elfu ishirini na tano) kama rambi rambi.

c)      Aidha uanachama utakoma pale mwanachama  anaposhindwa kutekeleza  sehemu ya ( ) ya katiba hii

d)     Kabla ya kutolewa uanachama mwanachama ataonywa  kwanza

e)      KAMA MWANACHAMA  ANJITOA KWASABABU ZA MSINGI MFANO

·         KUHAMA KUTOKA TANZANIA KWENDA NJE YA NCHI

i) CHAMA KITAMPA MKONO WA KWA HERI ROBO YA MICHANGO YAKE   

    YOTE

ii) NAKUPEWA GAWIO NI MPAKA KAMATI KUU IPITIE MAOMBI YAKE NA   

    WAJUMBE KURIDHIA

12. MUDA WA VIONGOZI MADARAKANI

a.      Viongozi watachaguliwa kila baada ya mwaka mmoja (1)

b.      Uongozi uliopo madarakani unaweza  kuendelea ikiwa huduma yao imekubalika na wana M.Y.D.G.

c.       Kiongozi anaweza  kuachishwa uongozi muda wowote ikiwa ataonekana  hafai kwa sababu za msingi  kwa mfano,

·         Kuvunja katiba ya M.Y.D.G.

·         Utovu wa nidhamu

·         Kutumia madaraka vibaya

·         Kutumia jina la kikundi kwa manufaa yake

·         Kiburi na jeuri

13. UCHAGUZI WA VIONGOZI

a)      Kikao cha uchaguzi ili kupitisha uchaguzi ufanyike lazima  kuwe na wajumbe ambao idadi yao haigawanyiki kwa 2

b)     Uchaguzi utafanyika  endapo tu kuna nusu ya wanachama wote

c)      Uchaguzi utakuwa unafanyika kila baada ya mwaka mmoja wa uongozi

14. SIFA ZA KIONGOZI

a)      Awe na umri kuanzia miaka 18

b)     Awe ni mzaliwa wa Tanzania

c)      Ajue kusoma na kuandika kwa ufasaha

d)     Awe mwenye nidhamu na kuijua vizuri katiba ya M.Y.D.G

15. KUFA KWA M.Y.D.G

M.Y.D.G kinaweza kufa kutokana na sababu zifuatazo

a)      Kufutwa na mamlaka yoyote halali ya serikali na sababu za halali za kisheria mfano.

·         Udini

·         Siasa

·         Ukabila

b)     Endapo umoja utakufa  utaacha kazi zake mali zake zote zinazohamishika na zisizohamishika kwa usimamizi wa Baraza la wajumbe la umoja zitapigwa mnada na fedha zote zitatumika kulipa madeni ya umoja kama yapo,

NB:Kama mwana M.Y.D.G atajihusisha na yaliyotajwa hapo juu hatua kali zitachukuliwa dhidi yake,ikiwa ni pamoja  na kusimamishwa uanachama kwa mujibu wa katiba hii.

16. MAPATO NA MATUMIZI

a)      Kila baada ya miezi mitatu lazima uongozi utoe na kuelezea kwa maandishi mapato na matumizi kwa wanachama wote,mweka hazina atasoma mapato na matumizi.

b)     Kila mwanachama anatakiwa kupewa risiti yake ya kila malipo na michango

17. VYANZO VYA MAPATO

     a)  Ada za wanakikundi kila mwezi

     b) Adhabu kwa wachelewaji(faini)

18. AKAUNTI YA BENKI YA M.Y.D.G

M.Y.D.G kitakuwa na akaunti namba ………. itakayomilikiwa na M.Y.D.G, pia itakuwa ni akaunti moja ambayo wanachama watakuwa wamechagua kwa kutunzia pesa za M.Y.D.G.Na uchukuaji wa pesa utahusisha watu wasiozidi wanne(4) wakiwemo mwenyekiti, katibu, mweka hazina na mjumbe mmoja.

19. MAREKEBISHO YA KATIBA

Katiba itafanyiwa marekebisho pale itakapoonekana ina mapungufu,na mapendekezo ya wajumbe ndiyo yatakayopelekea kufanyiwa marekebisho.Marekebisho yatafanyika kama nusu ya idadi ya wajumbe waliopendekeza hayo watakuwa /watakuepo kwenye kikao hicho.

NB: MWANA M.YDG ATAKAYEBAINIKA NA UBADHIRIFU WA MALI YA M.Y.D.G ATASHTAKIWA KWA SHERIA YA JAMHURI YA MUUNGANO WA TANZANIA.

                      MUNGU BARIKI MAKUMBUSHO YOUTH DEVELOPMENT GROUP.