The Business plan key points and goals Malta

The Business plan key points and goals Malta, June 10 th 2016

The Business Plan Introduction q … is a preventive analysis and a description of the different areas of a business/ a company -marketing, operations and/or production, human resources, financial, legal and institutional aspects-, together with the present and future strategies and intervention plans. q … is, in the first place, a document aimed at different readers, who are going to read and study it with different purposes. The Plan must be prepared and written by the business' promoters or in collaboration with them and under their coordination. Nevertheless, the term "Business Plan" also refers to its creation process, as a set of tasks carried out to achieve a document apt to be handed out. Those working on the Plan benefit from a deeper knowledge of all areas of the company and a stronger motivation to carry out the Plan. 2

The Business Plan Introduction A Business Plan is necessary to create a new company, but also when the target is to modernize/develop or increase the profits of an existing company: q if the Business Plan is carried out by a start-up, the most important part lies in the market and sector analysis, together with the business viability. q if the Business Plan is to be implemented by an existing company, this will become a Planning model. In this case, it is very important to diagnose the company's current situation, assess the possible future alternatives, and make decisions according to the most advantageous or profitable option. In this sense, the Plan is twice as useful, since internally it will be used as a follow-up and control management tool and, on the other hand, it will be used as a source of information for reports and budgets. 3

The Business Plan The goals From a practical point of view the Business Plan has three basic goals: q development of new strategies and new activities q a guide to plan and to run a business (a guide for the actions that have to be carried out) q a tool used to search for third party financing; the Plan will become a business card when applying for collaboration, or financial support from public or private institutions. These three goals are only useful if, while writing the Business Plan, the entrepreneurs/the management are forced to see all the important points, together with the defects and mistakes of their ideas and approach, helping to establish the viability of the entrepreneurial project and to defend the ideas in front of a third party. 4

The Business Plan The key points Strategy & Market Operations Economics & Financials People & Organization 5

Strategy & Market q Description and business delimitation Detailed description of what is intended to be done, why, by whom and how, pointing out the main competitive advantages. The business is made of the sum of a product, a market and a specific technology (as for the product, all the products and services that exist in the market must be described in detail, stating their characteristics, functions and use for the clients; As for the market, the kind of target clients and the geographical delimitation of their market must be enumerated) q Information and analysis In a general way, the phase and the information gathered should answer the following: - Market description: what is the current demand (market size, volume, specialization and determining factors) and the forecast of the future demand according to the expected growth rate; is it in expansion or in decline? ; which are the factors of the environment that can influence the company's development; which are the current and future entry barriers to the market, . . . - The client: in particular, to know which are the needs they want to satisfy with the product or service, their buying habits and the factors that influence the most in the purchase. From the study of their needs we will know how our product or service must be. - The competition: how it behaves in the market; who the competitors are; what kind of companies (location, sale volume, profitability, strong and weak points); in comparison, which are our prices and services and which advantages the company has over them; how they react with new competitors; who are the leaders. - The positioning of the company: in which market segment the company can be competitive, according to the target markets classification, the groups of clients and their purchase behaviour. 6

Strategy & Market q Goals and strategy Once the information gathering and analysis phases are over, the entrepreneurs/management are ready to carry out the formulation of the business strategy. They know where the company is positioned and the intention is to determine what the target is and what road they must follow to achieve it. q Business Model The entrepreneurs/management know how the company is situated within the sector and to whom the product or service has to be sold. To do so, the most important decisions have to be detailed in the description of the business model 7

Operations q Products or services: description of the technical characteristics of the products or services with clear indication of their most important qualities and the advantages they provide. q Processes: in particular description of: § process value map § production processes of goods or services stating the most important aspects of the planning and scheduling, especially mentioning the capacities of the production process, technologies used and resources employed; § marketing and selling processes § support processes q Supplies and Stock management: Justification of the policies for purchases and stocking of finished goods and products. Detailed description of how the supplies and stock management is carried out q Machinery & Equipment, technology and other assets, required to support the activities q Risks map 8

People & Organization In particular description of: q Corporate Governance q Organizational chart q Management team q Key people q Key Tasks and Responsibilities 9

Economics & Financials q The different sections of the Business Plan have described the basic characteristics of the company in each of its different areas. Nevertheless, a business cannot only be studied from the perspective of each one of these isolated areas, but it must mainly be considered as a whole with all of them. In this sense, all working documents must be gathered to assess the result of the conjunction of all these areas and its implications in the global viability of the business idea. q The Economic-Financial Plan can have a double aim: § assess the business model's viability. This document will gather the estimations established by the rest of the plans already defined (marketing, human resources, investment, production, etc. ) in economic & financial terms (fiveyear framework) and will prepare, relying on this forecast, the documents that will reaching conclusions on the already mentioned global viability. § serves as a development guide for the project that will help, on the one hand, to establish its financial needs and its capacity “to generate cash” and, on the other hand, to establish the deviations that could take place in a future real situation (sensitivity analysis). 10

Contatti ACBGroup Sviluppo S. p. a. Via Orefici, n. 2 – 20123 Milano MI T +39 02 36687100 F +39 02 36687129 E info@acbgsviluppo. it W www. acbgsviluppo. it Finanziaria Internazionale Holding S. p. A. Via Vittorio Alfieri, n. 1 – 31015 Conegliano TV Via Orefici, n. 2 – 20123 Milano MI Via Edoardo d’Onofrio, 212 - 00155 Roma RM 25°, Boulevard Royal- L – 2449 Luxembourg Bolshoy Zlatoustinsky Pereulok 1, Bldg 1 - 101000 Moscow T +39 0438 360900 F +39 0438 411901 E info@finint. com W www. finint. com Il presente documento è da considerarsi strettamente riservato e non riproducibile, soggetto ad utilizzo limitat o da parte del destinatario; pertanto esso non potrà essere riprodotto o comunque messo a disposizione di terzi senza il consenso preventivo scritto di ACBG Sviluppo S. p. A. e di Finanziaria Internazionale Holding S. p. A.