business plan competition template
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BusinessusinessPlanningPlanning
for thefor the
SocialSocialEnterpriseEnterprise
Chapter 1
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A Business Planning Reference Guide for Social Enterprises 15
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Failing to plan is planning to fail.
Effie Jones, Educator
What Is a Social Enterprise?
ocial enterprise is a generic term for a nonprofit enterprise, social-purposebusiness or revenue-generating venture founded to support or create economicopportunities for poor and disadvantaged populations while simultaneously operat-ing with reference to the financial bottom line.1A social enterprise may use revenue
it generates to reduce the need for external donor dollars to cover program costs, oras a means to cross-subsidize other social programs. A social enterprise can also bereferred to as an affirmative business, business development service provider,employment creation enterprise, or microfinance institution depending on thetype of business it is in, the language of the nonprofit sector, the business modelused, and the target population it serves. Try not to get stonewalled by vocabularyused in one particular industry or another (see Use of Language in About thisManual for definitions used in this book). Specifically, social enterprise literature issegmented by international and domestic program sectors. Despite specific com-plexities related to operating in overseas markets versus US markets, where the busi-ness framework is less ambiguous, Save the Children (SC) is of the opinion that prac-titioners in both disciplines face similar programming challenges. International and
domestic social entrepreneurs venture to gain practical lessons, applicable tools andknowledge from each other provided they remain open-minded and avoid gettinghung up on terminology.
Social enterprises are highly differentiated depending on the needs of their tar-get populations, and their program and financial objectives. Thus, social enterprisescan be take several forms: a direct employer of disadvantaged, at-risk or poor popu-lations; or a provider of services to disadvantaged business owners (exhibit 1A:Social Enterprise Approaches). Enterprise models are configured to simultaneouslyserve their clients and survive in themarket. Some sell products or services directlyto their target population: In this case the market and the client are the same(exhibit 1B, model 1). This is the model typically used for a financial service ormicrofinance program whereby enterprise viability is achieved through the sale ofsufficient volume of services, and social impact via providing poor entrepreneurswith access to affordable credit to fuel their businesses. Other social enterprises actas intermediaries, buying goods produced by poor or disadvantaged entrepreneursand then selling these products in external markets (exhibit 1B, model 2). Marketingenterprises or economic development programs use this approach, realizing incomethrough a markup on products to final customers and achieving social impactbyhelping the disadvantaged self-employed access markets for their products. A third
1Emerson, Jed, and Fay Twersky. 1996.New Social Entrepreneurs: The Success, Challenge andLessons of Non-profit Enterprise Creation. San Francisco: Roberts Foundation.
Chapter 1
Marketall the peo-ple who have a spe-cific, unsatisfied needor want and are will-ing and able to pur-chase a service orproduct to satisfy thatneed.
Business develop-ment services(BDS)developmentservice interventions
that aim to reducebarriers faced by
microentrepreneurssuch as marketaccess, restrictiveregulations, and poorinfrastructure, all ofwhich impedemicroentrepreneurs'productivity, profits,and income. BDS pro-grams may also seek
to leverage opportuni-ties for the purpose ofprofit maximization.Through addressing
barriers, businessdevelopment servicesnot only increase theprofitability of enter-prises but transform
them as well as theenvironment in which
they operate. Businessdevelopment servicesfall into a number ofcategories: linkages tomarkets, technology,referral services, busi-ness skills develop-
ment, common serv-ice facilities, organiz-ing, and advocacy.(Nelson, 1996).
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Managing the Double Bottom Line:16
possibility is a social enterprise that employs its target population and sells productsor services on the open market (exhibit 1B, model 3). This type of social enterpriseis viable in much the same way as a private business; social impact is accomplishedby employing a target population that may otherwise be barred from work opportu-nities.
EXHIBIT 1A: SOCIAL ENTERPRISEAPPROACHES
#1: Employment-Based Approach #2: Entrepreneur-Based Approach
Social Enterprise (1) Social Enterprise (2)
DIRECT EMPLOYEROF DISADVANTAGED
WORKERS
PROVIDES SERVICES
TO DISADVANTAGEDSELF-EMPLOYED
POPULATION
EXHIBIT 1B: SOCIAL ENTERPRISE MODELS
CUSTOMERTARGET
POPULATIONSE
SE MARKET
SOCIAL IMPACTVIABILITY
MODEL 1: ENTREPRENEURMODEL
Social enterprise sells needed business products and services directly to its target
population, self-employed poor or disadvantaged populations, to improve their busi-ness income. This is a classical model of Business Development and MicrofinancePrograms.
Social impacta positive effect onthe target population as a result of anintervention. Social impact can bemeasured numerous ways; Save theChildren primarily uses increased eco-nomic security and its reverberationsfor children.
Microfinance programType ofeconomic development programmingthat assists low income and poor self-employed people through the provi-sion of financial services (credit, sav-ings, insurance, etc.). Traditionally,microfinance programs provide reli-able access to collateral-free smallworking capital loans (hence thename micro) to a poor or disadvan-
taged target population deemeduncreditworthy by the formal sector.
Target populationthe poormicroentrepreneurs whose income oreconomic opportunity BDS programsseek to improve.
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A Business Planning Reference Guide for Social Enterprises 17
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SE MARKET
CUSTOMERTARGET
POPULATION SE
CUSTOMERSE TARGET
POPULATION
SOCIAL IMPACT
SOCIAL IMPACT & VIABILITY
VIABILITY
PRODUCER SE MARKET
MODEL2: MARKETINTERMEDIARYMODEL
MODEL3: EMPLOYMENTMODEL
Social enterprise acts as an intermediary between the target population and themarket; it achieves viability through the sale of client-made products to the final cus-tomer and helps clients reach markets otherwise inaccessible to them.
This social enterprise is a direct employer of its target population, (disadvantaged, at-
risk individuals); it attains viability through the sales of its products and services to anexternal market.
PARENT ORGANIZATION ROLEThe role of the parent organizationan international private voluntary organiza-tion (PVO) or nonprofit organizationthat initiated the business program or enter-prise also varies. Parent organizations provide oversight to the social enterprise andmay do so by working through another nonprofit partner, or directly with a socialventure. The parent organization (PO) is also responsible for the provision of techni-cal assistance to build capacity enterprise aimed at developing a sustainable socialventure. Some parent organizations elect to outsource technical assistance full timeor on occasion by contracting a separate entity or independent consultant (exhibit
1B: Relationship with Parent Organization.) The decision to outsource technicalassistance depends on in-house capabilities and mission compatibility of the parentorganization.
The commonality among all types of social enterprises is that they are nonprofitprograms that seek to achieve social impact objectives and financial viabilitythrough the creation of an enterprise that serves disadvantaged populations. Socialenterprise revenues must cover normal business operations as well as subsidizesocial program costs incurred by working with its target population. Save theChildren has piloted all models and approaches of social enterprise programs shownin the diagrams; it is distinct only in that it uses modified private-sector businesstools and puts viability at the forefront as the means to achieve social impact.
Financial via-bilitya socialenterprise is con-sidered financiallyviable when it nolonger requires sub-sidies. It may stillrequire loans orother investments tosupport its busi-ness operations asmany profitable pri-vate sector enter-prises do. A finan-cially viable socialenterprise would beone that is able tosecure the neces-sary funds throughregular, unsubsi-dized financialchannels. (See alsoviability).
Target popula-tionthe poormicroentrepreneurswhose income oreconomic opportu-nity BDS programsseek to improve.
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Managing the Double Bottom Line:18
Business Planning for the Social Enterprise
Social enterprise programs are inherently highly differentiated, making it difficult tofit them into a neat framework. Mass customization at this point can take place onlyin the tools we are able to provide, one of which is business planning. The type of
business intervention you choose and how it is structured will be largely dependenton the conditions specific to your market, industry, operating environment, and tar-get population and, therefore, will be unique to your program. No matter what typeyou choose, a business plan is a standard tool that can be applied to most socialenterprise models. The focus here, however, is on Save the Childrens version of asocial enterprise; it is up to you to make necessary adaptations to fit the needs ofyour program.
WHY ABUSINESS PLAN?Nonprofit programming is changing. Social enterprise programs are increasingly partof the nonprofit program agenda. The inevitable consequence is that business isbeing integrated into nonprofit culture. Phrases like operational sustainability,
financial viability and cost recovery have become a standard part of the nomen-clature. There is now considerable agreement among agencies of the importance ofoperating in a businesslike way.2 Indeed, more and more organizations and donorsare viewing interventions through a business lenswith respect to performance-based objectives, results-oriented outputs, and viabilitythus leading the way for
2Gibb, A.A., and G. Manu. 1990. Design of extension and related support services for small scaleenterprise development.International Small Business Journal 8, no.3.
PARENT ORGANIZATIONOR IMPLEMENTING
PARTNERPARENT ORGANIZATION
SOCIAL
ENTERPRISE IMPLEMENTING
PARTNER
SOCIAL
ENTERPRISE
EXHIBIT 1A: RELATIONSHIP WITH PARENT ORGANIZATION
#1: Direct Implementor #2: Works throughImplementing Partner
CONTRACTED
TECHNICAL
ASSISTANCE
CONTRACTED
TECHNICAL
ASSISTANCE
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A Business Planning Reference Guide for Social Enterprises 19
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mainstream change. Tools and methods borrowed from the private sector are beingadapted and applied to development programs as a means to better serve under-privileged and disenfranchised populations.
Save the Children is one organization taking this approach. At the same time,we recognize that standard business tools are not necessarily distributed throughnormal nonprofit channels; nor are they translated for use in the nonprofit context.
Business terminology, corporate case studies, and the single bottom-line focus oftenact as a smoke screen, barring nonprofit professionals from utilizing the importantresources available in the private sector. Nonetheless, as we have witnessed in themicrofinance discipline, tools borrowed and adapted from the banking sector canhelp practitioners do better at doing good. To this end, SC/US is attempting tobridge the culture gap between the business and nonprofit sectors with a modifiedbusiness planning tool that addresses the double bottom line (social and businessgoals) of social enterprises.
BUSINESS PLANNING FORYOUR SOCIAL ENTERPRISE PROGRAMDeveloping a business plan does not mean that you have to compromise or forsakeyour organizations social objectives in favor of running a profitable enterprise. On
the contrary, a business plan is a tool intended to help increase the overall perform-ance and impact of your social enterprise program. A good business plan should bepersonalized for your program, embodying its goals, culture, and values. At the sametime, it furnishes you with a proven instrument to operationalize your goals into aprogram that both provides business services to the poor or disadvantaged and canwithstand the pressures of the marketplace. In sum, a business plan is a prescribedmethod for clarifying the objectives of your social enterprise program and develop-ing a comprehensive plan to realize those objectives.
WHAT IS ABUSINESS PLAN?A business plan is the road map of your social enterprise program; it directs yourstakeholders and staff on how they will execute the intervention, manage the pro-
gram, and ultimately realize the programs goals and objectives.
A business plan:
articulates the mission of your program;
defines astrategybased on needs of the target population and customers, mar-ket conditions, industry forces, operating environment, and institutional profiles;
outlines specific actions to achieve program goals and objectives;
establishes targets for planning, measuring, and improving performance;
motivates employees;
communicates your ideas and plans to your stakeholders (board of directors,donors, partners, clients);
projects necessary resources, costs, and revenues of your program;
provides a basis for sound decision making.
WHYIS ABUSINESS PLAN IMPORTANT?The success of your social enterprise depends largely upon the decisions you make.A business plan is fundamentally a planning tool; it allocates resources and measuresthe results of your actions, and it helps you set realistic goals and make decisions. Alack of planning leaves you poorly equipped to anticipate future decisions andactions you must take to run your social enterprise. Inherent within a business planare several tools that facilitate planning and, hence, decision-making.
Stakeholderaperson entrustedwith a stake or an
interest; somethingstaked for gain orloss. (Merriam-Webster) A stake-holder is someonevested inor willing
to invest ina socialenterprise, someonewilling to take a riskregarding its successor failure. Stakehold-ers can be donors,international PVOs,nonprofits, local
NGOs, parent organi-zations, enterprisestaff, board mem-bers, clients, etc.
Strategya carefulplan or method forachieving ends. In abusiness plan, theseends are the objec-
tives.
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4A Design Tool
The rigors of developing a business plan help you think through the design ofyour intervention and conceive a program that is realistic and doable within thegiven context. Precursors to creating a business plansuch as analyzing the mar-ket, the operating environment, implementing partners capabilities, and financialneedsprovide an opportunity to examine your social enterprise program in itsentirety from an objective, critical perspective to determine whether what you areplanning is feasible, and how it can best be implemented.
4A Strategic Planning Tool
The combined tasks of inward and outward examination in a business plan, frominstitutional self-assessment to competitive analysis, help you plot a strategy foryour social enterprise program. Strategic thinking is necessary if your social enter-prise is to survive in a competitive marketplace. Business plans pit your productsor services against those of competitors, examine your market position, and keepyou abreast of the twists and turns in a dynamic operating environment to helpyou make strategic decisions based on these fluid variables.
4A Performance ToolA business plan is an operating plan that guides the management of your socialenterprise program and helps you work effectively toward its success. It allowsyou to set realistic targets and thus also provides a basis for measuring and moni-toring your programs performance against these targets. Using the business planas an ongoing performance tool helps practitioners modify future targets based onactual performance of the social enterprise.
4A Communications Tool
The business plan communicates your programs mission, management approach,objectives, and proposed methods of achieving the objectives to staff, leadership,clients, and donors. A business plan also helps you gain credibility with potential
partners and donors by demonstrating that your social enterprise program has aclear direction and thoroughly conceived strategy to achieve its ends.
4A Financial Tool
This section of the business plan serves several financial management functions.The budget establishes how resources will be allocated in your program. Financialstatements help you understand your financial position and the cash needs ofyour business. Calculating your enterprisesbreak-even pointtells you how muchincome is required to cover expenses and gives you a basis for pricing services orproducts. Finally, the financial section provides estimates of how much money isneeded for financing start-up expenses, the day-to-day costs of running opera-tions, and your income.
4A Management Tool
As previously stated, a business plan tells stakeholders where you are going andhow you plan to get there. It is important for the social enterprise program man-agement team to continually refer to the business plan to ensure that the enter-prise is not going off course and that the business plan accurately reflects changesin the strategic environment or market conditions. This process of creating andthen frequently revisiting and refining the business plan hones critical thinking andanalytical and decision-making skills, enabling the management team to trou-bleshoot problems related to competitors or changing economic factors and takeadvantage of new promotional or product opportunities.
Break-even pointthe point atwhich revenues from sales equalcosts.
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A Business Planning Reference Guide for Social Enterprises 21
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4A Human Resource Tool
A well-articulated program mission, clear goals and objectives, and a comprehen-sive plan are the keys to rallying motivation and teamwork in your social enter-prise program. Low motivation stems, in part, from poor planning and ambiguityin the workplace. If staff, management, and leadership do not know preciselywhat they are trying to achieve, it is hard to create a coherent, collaborative, andproductive work environment. Business plan targets and outputs are used to cre-ate human resource plans and can also be used as performance measures forindividual and collective performance.
4A Marketing Tool
The target market segment of the business plan gives you important informationfrom which to derive your marketing plan.Market research techniques help youidentify who your customers are and where they are located, in addition to distin-guishing their preferences, needs, and desires. The marketing plan that results is astrategic guide to reaching your customers through promotional efforts, productenhancements, and changes in price and distribution channels.
4A Donor and Investors GuideIn the private sector, a business plan is used to attract investor financing. The planis a prospectus of sorts for financiers to verify that the person seeking funds has (1)a solid business idea built on a market that is sizable enough to support continuedviability; (2) a concrete plan to reach that market and manage operations; and (3)realistic financial forecasts of the business future profitability. In short, investorswant a return on their investment, and a sound business plan is the best means tocommunicate that potential to investors.
In the world of business development services, donors are the investors. As thereturn on their investment, they want recipient institutions to meet their targetsfor social impact, cost-effectiveness, revenue, cost recovery, and scale. It is Save
the Childrens belief that, as in the private sector, business plans are the mostcomprehensive guides to our social enterprise programs that we can give ourinvestors. Although business plans are not currently a standard requirement forrequests for applications (RFAs) or grant proposals, donors are demonstrating aheightened interest in them.
Business Plan Brass Tacks
NEWVERSUS EXISTING SOCIAL ENTERPRISESThe business planning process is somewhat different for new social enterprises thanit is for existing ones. Established social enterprises have a track record and historic
information to draw from regarding their operations, costs, marketing experience,and staff that contribute to the development of a solid business plan. Every enter-prise, however, has to start at the beginning and develop a first plan. If you havebeen involved in an existing social enterprise, you should be able to make fairlyaccurate projections and devise strategies steeped in experience. But if yours is anew business, we recommend that you develop your plan for the first year of itsoperations only. Start-up enterprises may not have all the information required tocomplete some of the exercises in this manual.
Market researchsystematic, objectivegathering of informa-
tion to support a busi-ness' marketingefforts. Marketresearch uses specific
methods and toolssuch as surveys,interviews, focusgroups, product tests,etc., to understand thesize and scope of cer-
tain markets and con-sumer behavior as
they relate to the prod-uct or service thecompany sells.
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Managing the Double Bottom Line:22
COMPONENTS OF ABUSINESS PLANThe structure of a business plan is a series of plans built around your vision and mis-sion statements that are intended to execute your objectives and business concept.
BUSINESS PLAN OUTLINE
Executive Summary
Vision and Mission Statements Objectives
Description of the Social Enterprise
Target Market
Business Assessment
Operating Environment
Competitive Analysis
Marketing Plan Operations Plan/Production Plan
Human Resource Plan
Financial Plan
Appendices
TARTINA
product sales at
Annual ProcessedFoods Trade Show
in Port-au-Prince
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A Business Planning Reference Guide for Social Enterprises 23
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VISION
MISSION
OBJECTIVES
OPERATIONS
PLAN
HUMAN
RESOURCES
PLAN
FINANCIALPLAN
MARKETING
PLAN
MARKETRESEARCH:
TARGETMARKET
COMPETITORS BUSINESSASSESSMENT
EXHIBIT 1D: BUSINESS PLAN INFORMATION FLOWS
BUSINESS PLAN ESSENTIALSA good business plan conveys your ideas, goals, and plans for the social enterpriseprogram. To accomplish this, a business plan should:
4 Indicate focus. What is the core thrust of your social enterprise?
4Demonstrate an understanding of the target market. Who are your cus-tomers; where are they; and what are their needs and wants?
4 Evidence an appreciation of stakeholders interests and needs. What are the
essential interests of your donors, leadership, staff, clients, management, andpartners; and how are their needs embodied in your social enterprise program?
4 Confirm that your business concept is solid and market driven. How does
your business concept respond to the market, and what strategy will you use toadapt this concept in the face of changing market conditions?
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4 Prove there is a sufficient market to support the products or services you
are selling. Is there a large enough pool of potential customers with a need ordesire, sufficient income and the willingness to pay for your products or servicesto support your business? Is this market reachable?
4 Post financial projections that are healthy and realistic. Do your financial
projections clearly show that you will be able to meet your financial objectives(i.e., you will cover a specified percentage of your expenses with income thatyour business will generate)? Or are you over- or underestimating expenses orrevenues?
4 Demonstrate that key staff and management personnel are competent and
experienced. What skills and experience do your management and staff have tooperate your business successfully?
OUREXAMPLE: TARTINA ENTERPRISEThroughout this manual we use a fictional case, TARTINA Enterprise, which isloosely based on Save the Childrens social enterprise program in Haiti, to depict
business planning processes.3 In our example TARTINA is a food-processing socialenterprise located in a rural Haitian village called Colline, about 21/2 hours outsidePort-au-Prince. Its business is to transform agricultural productspeanuts and fruitinto peanut butter, jams, and jellies. TARTINA began as a Save the Children/Haitiprogram designed to link rural food processors to commercial markets and wasfunded by a donor called ASSIST. The program was initiated through SCs local part-ner, a nonprofit called the Association pour le Dveloppement Economique (ADE),then gradually evolved into a social enterprise, assuming its marketing brand name,TARTINA. TARTINA comes from the French verb tartiner, to spread, and the nountartine, a sandwich. Although the enterprise is still warehoused in ADE, a multisectororganization that specializes in education and community development, little pro-grammatic crossover remains. In our example, TARTINA operates as a business withits own mission and objectives and has hired many new enterprise staff. It has justcompleted its first one-year business plan, which is used as a running example inthis manual.
Please keep in mind that depending on the industry, the type of social enterprise,and the products or services it provides, your program may or may not bear a closelikeness to our example. Our fictional social enterprise manufactures products,whereas many social enterprises render services. An enterprise that sells servicesdirectly to its target population or clients will be configured differently from ourexample, which is operated by the target population but sells its products in a com-mercial market. The same is true for a social enterprise that is composed of severalpartner organizations or a network, since TARTINA works with only one local partner.
The TARTINA case is intended to be a user-friendly aid and not an example of aflawless social enterprise program that practitioners should emulate. Therefore, theexample herein should be regarded simply as an illustration of the various forms asocial enterprise business plan can take. While the sections of a business planremain more or less constant for every social enterprise, the particular emphasisgiven to each section will vary according to the type of business and its stage ofdevelopment.
3 See About This Manual in the introduction for a complete explanation of our case studyapproach and philosophy. Also see Chapter 9: Lessons Learned for a summarized overview ofSave the Childrens experience in Haiti with TOPLA, from which this example is drawn.
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A Business Planning Reference Guide for Social Enterprises 25
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The Business Plan Process
PREPARATION TIME CAN BE BROKEN DOWN INTO TWO SEGMENTSMARKET RESEARCH AND CREATING THE ACTUAL BUSINESS PLAN.
L Market research should be extensive and can take weeks or months depending
on depth of study, techniques chosen (surveys, questionnaires, or focus groups),and availability of information. To some extent, time needed for market researchwill be driven by the number of products or services you are offering, the loca-tion of your target market, the complexity of the industry, and the competitiveand operating environments. We strongly recommend not taking shortcuts whenit comes to doing market research; the overriding reason identified for SCs pastsocial enterprise program failures was inadequate market research prior to launchingthe program.
Market researchsystem-atic, objective gathering ofinformation to support a busi-ness marketing efforts.Market research uses specificmethods and tools such assurveys, interviews, focusgroups, product tests, etc., tounderstand the size and scopeof certain markets and con-sumer behavior as it relates to
the product or service thecompany sells.This manual neither provides comprehensive information on market
research methodologies, nor gives advice on which approaches to use when
conducting market research. Providing guidance on which market research
techniques to employ in preparation for your social enterprise program isbeyond the scope of this manual. Conducting solid market research before
you start is imperative (see Lessons Learned, chapter 9). If you do not have a
competent and experienced market researcher on staff, we strongly encour-
age contracting a market research professional to assist with this step.
L Business plan preparation is to some degree dependent on coordinating theavailable time of key participants and stakeholders in your social enterprise.Segments that require the participation of executives, senior staff, or those withdual responsibilities are harder to schedule than those that involve staff membersdedicated 100 percent to the social enterprise. If you are planning to hold a
series of workshops, meetings, discussion groups, or mini-retreats with partici-pants, allow a minimum ofsix to eight weeks to complete the business plan.Consensus building sometimes takes time. Whats more, we have been surprisedby how this process has illuminated the need to go back and do additionalresearch. In short, give yourself ample time, including contingency time of a fewweeks, for completing unforeseen necessary research and smoothing any ruffledfeathers.
FINANCIAL CONSIDERATIONSPre-program research and business plan development take considerable time, whichimplies a financial cost. Prior to embarking on social enterprise planning and devel-opment, allocate a budget for preprogram expenses to be incurred during the mar-
ket research and business plan development phases. Although the upfront costs maybe considerable, careful planning will pay off in the long run.
LENGTHA good business plan must be thorough, which will be a factor in its length. It shouldbe long enough that your information is complete but not so long that it is verboseor redundant. There is no hard and fast rule, so you must use your own judgment.
TIME PERIODBusiness plans need to cover a specific period of time. Although there is no pre-scribed duration, most are developed for one to five years of operation. As is the
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case with private companies, a business plan may be linked to financing needs for acertain stage of enterprise development, such as start-up or expansion. If you arewriting a business plan as part of a grant application requirement, it may coincidewith the funding cycle but should nonetheless reflect business reality and not bedriven solely by the time frame or price tag of the donor-investor.
CHANGESA business plan is a fluid document, a blueprint for your enterprise that must berevisited and modified periodically. Modifications usually result from changes thatoccur in the operating environment, industry forces, client needs or customer prefer-ences. For example, a new law regulating health and safety standards, an increase indirect competition, or an upturn in economic conditions could positively or nega-tively impact your business. When this happens, it is essential to make changes toyour business plan to reflect the current reality as well as projected future trends.
EXHIBIT 1E: BUSINESS PLANS RESPOND TO THE MARKET AND THEENVIRONMENT
Managem
en
t
Finance
Mar
ketin
g
Operations
OperatingEnvironment
IndustryForces
CustomerNeed & Wants
TargetPopulation
BUSINESS
PLAN
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Methodological Framework for Business Planning
Clearly, writing a business plan is a process which involves a significant amount oftime, effort, resources and advanced planning. The methodological framework is apreparation guide to address these issues. Practically, it is a projected timeline, a listof participants and key stakeholders of the various business segments, and a descrip-
tion of the methods that will be used for deriving information. More importantly, theframework facilitates a thorough and efficient business planning process, helping topromote consensus throughout the business planning process and create a sense ofownership upon its conclusion.
CONSENSUS AND OWNERSHIPConsensus throughout the business planning process and ownership of its conclu-sions by key stakeholders are essential at each stage.A business plan unilaterallydeveloped, or one prepared despite discord, is bound to fail during imple-mentation. Stakeholders of the social enterprise must be 100 percent on boardbefore the venture is launched. In addition, to imbue ownership, the social enter-prise stakeholders should be the ones who actually write the business plan, regard-
less of whether you hire a consultant to help facilitate the process.METHODSave the Children recommends using a participatory process throughout businessplanning. Most development and nonprofit organizations are well versed in partici-patory processes. Use your discretion, style, and experience to approach businessplanning with your partners and clients in a participatory way. Common methodsinclude workshops, discussion groups, meetings, retreats, and collaborative fact find-ing or research.
PARTICIPANTSIt is very important to include the appropriate participants when preparing yourbusiness plan. As previously explained, a business plan is the compilation of a subset
of plans for the different segments of your business. It contains plans for marketing,production, finance, operations, and human resources.Include key decision makers,staff, and external resource people implicated in each function to help develop the
related plan. For example, to develop your marketing plan, include the business andmarketing manager, the sales staff, and an independent market researcher or special-ist as you see fit. Whether or not you choose to use an external specialist dependson the level of in-house expertise. Also, include input from your target populationwhere opportune. If your social enterprise is rendering services directly to the targetpopulation, they will contribute greatly to your market research and product strate-gy. In the case of TARTINA Enterprise, microentrepreneurs manufactured the prod-ucts, so their input was invaluable when developing the production plan.
BUILDING YOURMETHODOLOGICAL FRAMEWORKA sample of the Methodological Framework for TARTINA Enterprises is provided inexhibit 1F. This example demonstrates how the framework steers the business plandevelopment by addressing key questions in each section of the plan. The frame-work also helps direct participation at each level of planning and delineates a time-line for completing the sections.
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Preparing a Business Plan Framework
Locate the blank Business Planning Framework in The Workbookor create yourown. An example for TARTINA Enterprise is provided in exhibit 1F.
As you work your way through each chapter of this manual and learn more, listwhich participants will be included in the planning exercises, the methodology
you will use, and the anticipated time period to complete each segment. It is not necessary to use every section or answer every question laid out in the
framework, as the particulars of your program may not warrant it. This frame-work is intended as a guide; make adjustments where necessary to fit your busi-ness planning needs.
Managing the Double Bottom Line:28
TARTINA clients prepare
containers prior to packaging
Mamba peanut butter
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EXHIBIT1F:BUSINESSPLAN
FRAMEWORKFORTARTINAENTERPRISE
KeyQuestions
Method
PrincipalParticipants1
TimeRequired
Chapter
I.
Mission&
Objectives
1.
Whatisthevisionandmission?
2.
Whatsocialimpactandbusi-
nessob
jectiveswillbeaccom-
plished
?
3.
Whatisthedescriptionofthis
business?
1.
W
orkshop
2.
W
orkshop
3.
W
orkshop
1.
Boardmembers(TE2),Business
Advisor(SC),SeniorProject
Staff(ADE),
Executive
Management(ADE),
delegate
clients(TE).
2.-
3Same,
lessboardmembers.
1.
Oneday
2.-
3.Twodays
II.Unde
rstanding
TargetMarkets
forE
achProduct
1.
Whoiso
urtargetmarket(s)?
Actualcu
stomerandfinalcon-
sumeran
ddecision-makersfor
eachproduct?
2.
Howisthemarketsegmented?
1.A.D
iscussion/workshoponpre-
ferredtargetmarket:consumer,
p
urchaser,andactualcustomer
le
vels.
1.B.D
emographicreports,survey
customers,
focusgroups.(mar-
ketresearch).
2.A.D
iscussion/workshoponmar-
ketsegmentation.
2.B.R
eports,interviews,surveys
w
ithcoustomers.
(market
research)
1.
MarketingManager(TE),
BusinessManager(TE),sales
staff(TE),BusinessAdvisor
(SC),ProgramManager(ADE)
2.
Sameas1
1.A.
Oneday
1.B.
Twoweeksfor
study
2.A.
Halfday
2.B.
Oneweekfor
marketresearch
2 31ThereiscrossoverbetweenparticipantsidentifiedfromADEand
thosefromTARTINAEnterprise.
Som
estafffrom
SCorADEare
allocatedonatimepercentagetothe
enterpriseprogramand
maywearmorethanonehat.
Atthe
timeofdevelopingthis
businessplan,
TARTINAwasstilla"program"ofADEwithitsstaff
ontheADEpayroll.(SeeChapter7,H
umanResources,formore
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EXHIBIT1F:BUSINESSPLANF
RAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
3.A.Debriefsalesstaff,marketing
m
anageronwhattheyknow
ab
outcustomers'buyinghabits
an
dmotives.
3.B.O
bservationmethod:Atpoint
ofpurchase,observebuying
patternsandhabits.(market
re
search)
3.C.Su
rveycurrentandpotential
re
tailerswithquestionnaire.
3.D.Conductfocusgroupswith
co
nsumers.
(marketresearch)
3
.A.
Salesstaff(TE),
Marketing
Manager(TE),Business
Manager(TE)
3
.B.
Salesstaff(TE),
Marketing
Manager(TE),Business
Manager(TE)
3
.C.
Salesstaff(TE),
Marketing
Manager(TE),Business
Manager(TE)
3
.D.
Salesstaff(TE),
Marketing
Manager(TE),Business
Manager(TE)
3
.E.
Sameas1&2+Business
Advisor(SC)
4
.
Sameas3.
E.
1
.
ProgramManager(ADE),
ProductionManager(TE),
BusinessManager(TE),produc
-
tionstaff,(TE)marketingstaff
(TE),
BusinessAdvisor(SC),
clients(TE)
3.A.
Halfday
3B.
Halfday:orient
salesstaff;one
weekstudy
3.C.
Oneweekto
conductsurvey:
combinewith
markettestsur-
vey
3.D.
Twoweeksto
organizeand
conductfocus
groups
3.E.
Oneday
4.
Halfaday
1.
Halfday
3.
Whatare
theprimarybuying
motives/h
abitsofthetargetmar-
ketforea
chproduct?
4.
Whatare
thefuturetrendsand
sizeofthetargetmarket?
III.Institutional,
Envir
onmental
andI
ndustry
Assessments
1.
Whatare
TEsstrengthsand
weaknesses?
3.E.Sy
nthesizeinformation/discus-
siononstrategicimplications.
4.
W
orkshop.
1.
BusinessAssessmentworkshop
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EXHIBIT1F:BUSINESSPLANF
RAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
2.
En
vironmentalAssessment
workshop
3.
SW
OTAnalysisworkshop
4.A.In
dustryAnalysisworkshop
4.B.Statisticalinformationonindus-
try,surveys,questionnaires.
(m
arketresearch)
2
-4.
Sameas1
2.
Halfday
3.
Halfday
4.A.
Oneday
workshop
4.B.
Twoweeks
Research
2.
Whatare
theopportunitiesand
threatsin
theexternalenviron-
mentthatTEfaces?
3.
Whatare
thestrategicimplica-
tionsforT
EsStrengthsand
Opportun
ities?AndThreatsand
Weaknesses?HowcanS/Obe
leveraged
andW/Tmitigated?
4.
Istheindustryhospitableorhos-
tileforTE
sbusiness?What
aspectsoftheindustrywill
impactbu
sinessandprofit
potential?
IV.IndustryAnalysis
1.
Howsusc
eptibleisTARTINA's
businesstoseasonalfluctua-
tions?For
production?Forsales?
2.
Howsensitivetoeconomic
cyclesisT
ARTINA?
1.A.D
iscussionswithsalesstaff,
re
tailers,
farmers,andexternal
re
sourcepeople.
1.B.Pr
intedinformationandagri-
cu
lturalreports,surveys/inter-
viewswithretailers,
farmers
(m
arketresearch)
2.
Discussionswitheconomist,
ba
nkers,
industryspecialists.
Pr
intedeconomicinformation
&
reports.(marketresearch)
1
.A.
BusinessAdvisor(SC),sales
staff(TE),MarketingManager
(TE),BusinessManager(TE),
externalmarketresourcepeo-
pleandproducers.
1
.B.
Sameas1A.
2
.
BusinessAdvisor(SC),sales
staff(TE),MarketingManager
(TE),BusinessManager(TE),
FinancialDirector(SC),
Accountant(TE),externalmar-
ketresourcepeople.
1.A.
Oneweekto
holddiscus-
sionswithvari-
ousplayers
1.B.
Twoweeksto
collectinforma-
tion;domarket
research
2.-
5Threeweeksto
collectinforma-
tion;domarket
research
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EXHIBIT1FBUSINESSPLANFRAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
3.
Howwillthelegalandregulato-
ryenviron
mentaffectTARTINA's
operations?
4.
HowsensitiveisTARTINA
Enterprise
tochangingtechnolo-
gy?
5.
Whatare
thefinancialcharacter-
isticsofth
efoodprocessing
industry?
6.
WhatisTARTINA"sStrategywith
respectto
theseindustryfactors?
3.
Discussionsandinterviews
withgovernmentagencies,
lawyers,
businesspeople,
industryregulators.
Printed
ec
onomicinformation&
reports.(marketresearch)
4.
Discussionswithproduction
staff,MIS,managementand
ad
ministration,
logistics,sales,
retailers,
industryanalysts.
5.
Discussionswithsales&mar-
ke
tingstaff,retailers,
industry
an
alysts.
6.
W
orkshoptosynthesizefind-
ings.
Plotstrategy.
3
.
BusinessAdvisor(SC,
TE),
BusinessManager(TE),exter-
nalmarketresourcepeople
(lawyer,industryconsultant).
4
.
BusinessAdvisor(SC),sales
staff(TE),MarketingManager
(TE),BusinessManager(TE),
FinancialDirector(SC),MIS
Manager,ProductionManager
(TE),externalmarketresource
(industryconsultant).
5
.
BusinessAdvisor(SC),sales
staff(TE),MarketingManager
(TE),BusinessManager(TE),
FinancialDirector(SC),
ProductionManager(TE),
Accountant(TE),externalmar-
ketresource(industryconsult-
ant).
6
.
Allaboveexceptexternal
resourcepeople.
6.
OneDay
V.Competition
Analy
sis
1.
Howarethemaincompetitors
andtheiroverallstrengthsand
weaknesses?Andperproduct?
1.A.D
iscussionswithsalesstaff,
retailers,marketresourcepeo-
ple.
1.B.Pr
intedinformation/reports.
Interviewswithcompetitors,
su
ppliers,andcustomers.
(mar-
ke
tresearch)
1
.
BusinessAdvisor(SC),sales
staff(TE),
MarketingManager
(TE),
BusinessManager(TE),
externalmarketresourcepeo-
ple.
(marketresearch)
1.A.
Oneweekto
holddiscus-
sionswithvari-
ousplayers;do
research.
1.B.
Twoweeks
Market
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2-3.
Twoweeksto
collectand
analyzecom-
petitiveinfor-
mation.
4.
Oneday
1.A.
Halfday
preparation
1.B.Oneday
1.C.
Onedayto
develop/
translatesurvey.
Halfdayenu-
meratortrain-
ingonmarket
survey
Tendays-
Markettest/
collectionof
Marketdata
Oneday-
Analysisof
k
EXHIBIT1F:BUSINESSPLANFRAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
2.
Howmuchmarketsharedoes
thecomp
etitionhaverelativeto
TEs?
3.
Whatwillthecompetitionlook
likeinthefuture?
4.
WhatisT
Esstrategywith
respecttothecompetitors?
V.
Prod
uctTest
1.
What4-5
products(maximum)
willoffer
thegreatestfeasibility
ofachievingtheenterprisepro-
ject'sobjectives?
2.-
3.D
iscussionswithsalesstaff,
retailers,marketresourcepeo-
ple.
Printedinformation/re-
portsifavailable.
(market
research)
4.
W
orkshoptosynthesizefind-
in
gs.
Plotstrategy.
1.A.Systematicevaluationofprod-
uctsusingmarket-drivencrite-
riaandsalesperformancefig-
uresusingaworkshopforum.
1.B.Feasibilitytest:Deskreviewof
financialfeasibilityinworkshop
fo
rum.
1.C.M
arkettest:Sampleofcurrent
andpotentialtargetmarketsfor
reducedproductlinelistusing
surveymethod.
2-3.BusinessAdvisor(SC),sales
staff(TE),MarketingManager
(TE),
BusinessManager(TE),
externalmarketresource
people.
4.
Sameas2.
1.A.
BusinessAdvisor(SC),Project
Advisor(SC),BusinessManage
r
(TE),salesstaff(TE),external
resourcepersonwithrelevant
marketoverview
1.B.
MarketingManager(TE),
Bus-
inessManager(TE),
Accountan
t
(TE),
FinancialDirector(SC),
BusinessAdvisor(SC)
1.C.
BusinessAdvisor(SC),
MarketingManager(TE),
BusinessManager(TE),sales
andproductionagents(TE),
ProgramManager(ADE)
PLEASENOTE:
Information
onproduct
testinghasnot
beenincluded
inthismanual.
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1.D
Halfday
discussion
Twoweeksto
locateresource
person
1.E.
Halfday
workshop
1.
Oneday
2-3.
Halfday
4.A.
Oneday
EXHIBIT1F:BUSINESSPLANFRAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
VI.
MarketingPlan
1.
Whatare
ourmarketingobjec-
tivesfortheTEproductline?
Salestargets?
Part1.P
roductStrategy
2.
Whatarethefeaturesandbene-
fitsofTAR
TINAsproducts?
3.
Whatstageoftheproductlife
cycleiseachproductin?
4.
Whatisthedesiredpositionof
eachprod
uctrelativetothe
competitionforthemostimpor-
tantpurchasecriteria?
1.D.D
iscussionontechnicalfeasi-
bilityofproductswithfood-
processingresourceperson.
1.E.Forthoseproductspassingthe
firstthreestepsoffeasibility
te
st,evaluateonsocialfeasibili-
ty
termsmanagementteam
discussion.
1.
Disc
ussion/workshop
2.
Disc
ussion/workshop
3.
Disc
ussion/workshop
4.A.D
iscussionbasedonprimary
in
formationcollectedtodate.
1.D.
ProgramManger(ADE),
ProductionManager(TE),
BusinessManager(TE),produc-
tionstaff(TE)resourceperson,
BusinessAdvisor(SC),repre-
sentativeclients
1.E
SeniorProjectManagement
(SC/ADE/TE),BusinessAdvisor
(SC)
1.
BusinessManager(TE),
ProgramManager(ADE),
Mar-
ketingManager(TE),
Business
Advisor(SC),salesstaff(TE)
2&3.
Salesstaff(TE),
Marketing
Manager(TE),
Business
Manager(TE),
BusinessAdviso
r
(SC)
4.A.&
B.ProjectAdvisor(SC),sales
staff(TE),
Marketing
Manager(TE),
Business
Advisor(SC),Production
Manager(TE),
Production
Agents(TE)
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4.B.
Twomonths
(ongoing)
Implementing
changesand
testingimpact
ofchangeson
marketing
objectives
Dependson
magnitudeof
EXHIBIT1F:BUSINESSPLANF
RAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
5.
Whatisth
eplanfortheproduct
intermsofphysicalcharacteris-
ticsandse
rvicingtohelpachieve
marketing
objectives?
6.
Whatarethecostimplications
forproduc
tchanges?
7.
Whatisth
estrategyforeachTE
product?
8.
Whatisth
estrategyfortheentire
productline?
4.B.Productchangesshouldfirstbe
te
stedonsampletargetgroup
priortofull-scalecommercial-
ization.
Testingcanbedone
th
roughlimitedregularsales
ap
proach(limitedquantities)
an
dfocusgroupmarket
re
search.
5.-6.
Discussion/workshop
7.
Wo
rkshop
8.
Discussion/workshop
5
.-6.
Sameas4.A.
&B.
7
.
Salesstaff(TE),
Marketing
Manager(TE),BusinessManager
(TE),
BusinessAdvisor(SC),
ProductionManager(TE),
ProductionAgents(TE)
8
.
Sameas7,
lessproduction
agents
changes
5.-
6.Oneday
7.
Twodays
8.
Oneday
Part2.
DistributionStrategy
9.
Whereshouldwesell?Whatare
theprioritymarkets?
10.W
hatarethebestmethodsand
distributionchannelstoreach
prioritytargetmarkets?
11.W
hatisth
edistributionplan?
Howwillthishelpachievemar-
k e t i n g o b j e c t i v e s ?
9.-
11.
Workshopanddeskreview
ofhistoricalsalesperform-
ancetohelpevaluatemost
lucrativesalesopportuni-
ties;marketstudyontarget
markets,costadvantagesof
distributionmarketsand
methods.
9
.-11.
BusinessAdvisor(SC),
MarketingManager(TE),
ProgramManagement(SC,
ADE),salesstaff(TE),
FinancialDirector(SC),
logisticmanager/opera-
tions.
9.-
11.Twodays
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12-14.Twodays
15.
Halfday
16.A.
Oneday
16B.One-monthtest
fornewpromo-
tionalstrategy
17.
Oneday
EXHIBIT1F:BUSINESSPLANFRAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
Part3.P
ricingStrategy
12.W
hatisth
ebreak-evenpointfor
unitsand
revenue?
13.Fortheplanningperiod,atwhat
levelshou
ldthebasicpricebe
setforeachproduct?
14.Fortheplanningperiod,what
willthestrategybeforelements
beyondth
ebasicprice?
Part4.
PromotionStrategy
15.W
hatare
logoand
promotionalmessage?
16.W
hattypesofpromotionalvehi-
clesandlow-costoptionsshould
beusedtomeetthemarketing
objectives
?
17.Howdow
ewanttopackageTE
products?
12.-14
.Workshop
15.W
orkshop/designerpresents
prototypes
16.A.
Workshop
16.B.
Markettestpromotion
17.W
orkshop
12.-
14.
Salesstaff(TE),Marketing
Manager(TE),
Business
Manager(TE),
Business
Advisor(SC),Program
Manager(SC),Accountant
(ADE),ProductionManager
(TE)
15.A.
MarketingManager(TE),Sales
Staff(TE),BusinessManager
(TE),graphicartist(external),
BusinessAdvisor(SC),Program
Manager(ADS)
16.A.
&B.
Salesstaff(ADE),
Marketing
Manager(TE),
Business
Manager(TE),
BusinessAdviso
r
(SC),Accountant(ADE)
17.
Sameas15+Purchasing
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18.
Oneday
19.
Twodays
orientationon
promotionand
development
ofpromotional
strategy.
20.
Threeweeksto
prepare
promotional
materials.
21.
Twodays
EXHIBIT1F:BUSINESSPLANFRAMEWORKFORTARTINAENTERPRISE
KeyQuestions
Method
PrincipalParticipants
TimeRequired
Chapter
18.How
manystaffandwhatkind
willw
eneedtomarketTEprod-
ucts?
19.W
hatisthepromotionalstrate-
gyto
achievemarketingobjec-
tives?
20.
Whatistheimplementation
plan
forpromotionalstrategyin
Year
1?
21.W
hatisthesalesstructure?What
arethecostsassociatedwithsell-
ing?Salesstrategiesandplanfor
Year
1?
18.
Workshop/discussion
19.Workshop/discussion
20.
Implementation(i.e.,
develop-
mentofpromotionalmaterials)
willbedoneoutsideofwork-
shop.
21.
Workshop/discussion
18.
MarketingManager(TE),
BusinessManager(TE);
BusinessAdvisor(SC)
19.
BusinessAdvisor(SC),salesstaff
(TE),MarketingManager(TE),
Promotionalresourcepeo
ple
(external)
20.
ManagedbyMarketMan
ager
(TE);AllMarketing&Sale
s
Staff,BusinessAdvisor(SC
)
21.
Sameas19+Accountant
(ADE),
ProductionManager(TE)
(tohelpsetsalestargetso
nly)
VII.P
roductionPlan
Part1
:Diagnostic
1.
Whatistheproductionprocess?
Who
isresponsibleforopera-
tions
stagesandproduction
steps
?
2.
WhatisTARTINA'slevelofpro-
ductivity?
3.
Whatareourconstraintstopro-
duction?
4.
Atwhatlevelofcapacityarewe
operating?
1-4.
Workshopatproductionsite
1-4.
BusinessManager(TE),
ProductionManager(TE),pro-
ductionstaff(TE),
Invento
ry
Manager(TE),clients,
Business
Advisor(SC),ProductionAgents
(TE)
5.
BusinessManager(TE),
5 6
1.-
4.Twodays
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5.
Oneday
6.
Twodays;facil-
itatedbyexter-
naltechnical
assistance
7.
Onedayon
Quality
Control,one
monthtraining
ofproduction
staffandMEs
followingB-
Plan
EXHIBIT1F:BUSINESSPLANF
RAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
Part2:
Operation
s/Production
Plan
5.
WhatareTARTINA'sproduction
objectives?Forqualitycontrol,
productim
provements?What
aretheproductiontargets?
6.
Howcanweimproveproduc-
tionproce
ss?Improvecapacity
utilization
andproductivity?
7.
Howcanefficiencyandquality
controlof
productionprocessbe
improved?
5.
W
orkshop
6.
Planningsessionswithproduc-
tio
nstaffandmicroentrepre-
ne
urs
7.
W
orkshop/planningsession
facilitatedbyexternaltechnical
assistance.
Productionmanager(TE),
MarketingManager,production
staff(TE),
BusinessAdvisor
(SC),ProgramManager(ADE),
FinanceDirector(SC)
6
.
BusinessManager(TE),
Productionmanager(TE),pro-
ductionstaff(TE),
Inventory
Manager(TE),BusinessAdvisor
(SC),clients:TA(external)
7
.
ProgramManager(ADE),
ProductionManager(TE),
ProductionTA(external),
InventoryManager(TE),pro-
ductionstaff(TE),clients.
8.
Howcanwerespondbetterto
customerwantswithourprod-
ucts?Will
thishelpustomeet
businesso
bjectives?Whatare
thecostsa
ssociatedwithR&D?
8.
W
orkshop/planningsession
8
.
ProgramManager(ADE),
ProductionManager(TE),
MarketingManager(TE),
productionstaff(TE),
Business
Advisor(SC),R&D(TE)
8.
Twodays
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EXHIBIT1F:BUSINESSPLANFRAMEWORKFORTARTINAEN
TERPRISE
Key
Questions
Method
PrincipalParticipants
TimeRequired
Chapter
9.
Howca
ninformationsharing
beimpr
ovedbetweenproduc-
tionstepsandthroughoutthe
business?Howcanwetrack
thisinfo
rmation?DevelopMIS?
9.
W
orkshop/planningsession
610.
Whataretheshortcomingsof
theexistingsystem?What
changes
shouldbemade?What
typeofmanagementinformation
system(MIS)shouldbeused?
11.
Whatin
ternalcontrolsare
alreadyinplacewithintheenter-
prise?W
herearethegaps?What
changes
needtobemadeinorder
tostrengtheninternalcontrols?
12.
Whatis
thecustomerfeed
back/pe
rceptionregarding
TARTINA'scustomerservice?
Whatis
thecurrentorderfulfill-
mentpr
ocess?Howcancus-
tomerservicebeimprovedto
betterm
eetcustomersneeds
andexp
ectations?
13.
Whatw
illtheproduction
schedulebe?Whatistheplan
tomana
gepurchaseofraw
materialsupplies?
10.A.S
ystemsauditwithexternal
M
ISprofessional.
10.B.W
orkshop/Discussrecommen-
d
ations
11.A.S
ystemsauditwithexternal
M
ISprofessional
11.B.W
orkshop
12.A.
Marketstudy
12.B.
Workshop
13.W
orkshopandtrainingofpro-
d
uctionstaffandclients
9
.
ProgramManager(ADE),
ProductionManager(TE),
ProductionTA(external),
InventoryManager(TE),pro-
ductionstaff(TE),
MISSpecialist
(external)
1
0.A.
&
1
0.B.BusinessAdvisor(SC),allgener-
alandlinemanagers(TE),
MIS
specialist(TE),financialstaff
(TE),contractedMIS
professional
1
1.
BusinessAdvisor(SC),Business
Manager,OperationsManager
(TE),
MISspecialist(TE),finan-
cialstaff(TE),contractedMIS
professional
1
2.A.
&
1
2.B.BusinessAdvisor(SC),Business
Managerandrelevantman-
agers(marketing,customer
service,
inventory,operations,
finance,etc.)
(TE),
MISspecial-
ist(TE),salesstaff(TE),externa
l
marketresearchperson
1
3.
ProductionManager(TE),pro-
ductionstaff(TE),clients,
BusinessManager(TE),
Business
Advisor(SC)
9.
Three-day
workshop,
facil-
itatedbyexter-
naltechnical
assistance
10.A.T
hreedays
audit/recom-
mendations;
10.B.Onedaytodis-
cussanddecide
onoptions.
11.A.Internalcon-
trolsaudit
(includedin
above)
11.B.Onedayto
incorporate
newcontrols
12.A.Oneweekfor
marketresearch
12.B.One-daywork-
shoptodevel-
opcustomer
serviceplan
13.
Twodaysto
developpro-
ductionsched-
ulewithpro-
ductionstaff
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EXHIBIT1F:BUSINESSPLANF
RAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
Chapter
14.Howcan
theinventorybebet-
termana
ged?Whattypeof
controls
canweputinplaceto
reduces
poilage,
loss,ortheft?
15.Whatarethecostsofthepro-
ductionplanandthecashflow
requirem
ents?Whatarethe
unitcost
sforeachproduct?
16.
Productiontargetsandtheir
impacto
nthebottom-line?
17.
Whatsocialimpactindicators
willTARTINAtrack?Direct
impact?Indirectimpact?What
systemswillbeusedtomonitor
andasse
ssimpactfortheenter-
prise?
IX.Huma
nResources
Plan
1.
Whatare
therolesofenterprise
actors?Whatistherelationship
betweenthem?Whoisserving
whom?
2.
Whatkind
sofhumanresources
arerequiredtosupportthemar-
keting,production,enterprise
management?Onwhatsalary
scale?
3.
Whatisth
estaffrecruitment
planandtimelinetohirenew
l
?
14.
W
orkshopandtrainingofpro-
ductionstaffandclients
15.
Financialplanningworkshop
16.
Financialproductionplanning
workshop
17.A.Sy
stemsauditwithexternalMIS
professional
17.B.W
orkshopwithstatistician
im
pactspecialist.Discussrec-
om
mendations;buildintoplan
1-5.W
orkshop,staffinventory
1
4.
ProductionManager(TE),In-
ventoryManager(TE),produc-
tionstaff(TE),clients,
Business
Advisor,MarketingManager
1
5.
ProgramManager(ADE),
BusinessManager(TE),
FinancialStaff(SC,
ADE,TE),
ProductionManager(TE),
BusinessAdvisor(SC)
1
6.
Sameasabove
1
7.A.
&
1
7.B.BusinessAdvisor(SC),Business
Manager(TE),
Program
Manager(ADE),production
agents(TE)MISspecialist(TE),
contractedimpactspecialist
1
-5.
SeniorProgramManagement
(SC,
ADE,TE)
TimeRequired
14.
Three-day
training
One-day
planning
15.
Twodayson
financeplanto
supportpro-
ductionplan
16.
Onedaysetting
targets
17.A.T
hreedays
audit(sameas
forMIS);
17.B.Two-daywork-
shopforplan-
ning.
MIS
development
ongoing
1-5.
Oneday
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EXHIBIT1F:BUSINESSPLANF
RAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
Chapter
TimeRequired
74.
Whatorganizationalstructureis
mostappropriate?
5.
Whatare
theoutputs,objectives
andrespo
nsibilitiesofeachposi-
tion?Job
descriptions?
6.
Whatistheboardscurrent
developm
entstage?Whoison
theboard
?Whataretheirskills,
professions,andareasofexpert-
ise?Who
istheboardchair?
7.
Whatkindofincentiveplancan
weemplo
ytomotivateand
retainstaff?
8.
Whattypeofdevelopmentplans
dowene
edforstaffandclients
tobuildc
apacity?Whatarethe
specifictr
ainingandTAneedsfor
theenterprisestaff?Theclients?
Whowill
providetraining;what
aretheassociatedcosts?Will
externalr
esourcepeoplebecon-
tractedorwillTA/trainingbe
donein-h
ouse?
9.
Whenandwherewillplanbe
implemen
ted;bywhomand
withwhatmoney(HRbudget)?
6.
Workshop/discussion
7.
Discussion/financialprojections
8.
Needsassessment,internal
skillsinventory,planningses-
sio
ntoscheduletrainingand
technicalassistance
9.
Planningsession,
budget
projections
6
.
Boardmembers,
Business
Advisor(SC)andCountry
Representative(SC),Executive
DirectorandSenior
Management
(AD,
TE).
7
.
ProgramManager(ADE),
Busi-
nessManager(TE)withassis-
tancefromprojectfinancialstaff
8
A.
BusinessManager(TE),
MarketingManager(TE),
ProductionManager(TE),
BusinessAdvisor(SC),Financia
l
Director(SC),Program
Manager(ADE)
8
B.
Includeproductionagentsin
discussiononclientdevelop-
mentneeds
9
.
BusinessManager(TE),
ProgramManager(ADE)with
assistancefromfinancialstaff
6.
Halfday
7.
Halfdaytopre-
pareimplemen-
tationplan
8A.
Fivedaysfor
needsassess-
ment
8B.
One-twodays
todevelop
technicalassis-
tanceandtrain-
ingplans.
9.
Onedayto
prepareimple-
mentationplan
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X.Financ
ialPlan
1.
Whatarethefinancialobjectives
andtargets?
2.
Whatsocialcostswillbecovered
bytheenterprise?Howarethey
quantified?Usingwhatmethod-
ology?
3.
Whatarethefinancialrequire-
mentstosupportaboveplans
(budgetplanning)
4.
HowisTARTINAperforming
financially
atpresent?
Developmentandanalysisof
financialstatement(balance
sheet,profitandloss,cashflow
statementandcashflowprojec-
tion).Wha
tisthedoublebottom
line?Whatarethestrategic
implication
s?
1.
Wo
rkshop
2.
Wo
rkshop/discussion
3.
Wo
rkshop
4.
Pre
sentationoffinancialstate-
me
ntsbyFinancialDirector
(SC
)andBusinessManager(TE)
followedbydiscussion
1.
SeniorManagement,Financial
Director(SC),Business
Manager(TE),Program
Manager(ADE),
financialstaff
(ADE/TE),
BusinessAdvisor(SC
)
2.
Businessadvisor(SC),Financia
l
Director(SC),ProgramManager
(SC),SeniorManagement:pro
-
duction,
finance,program(TE)
andproductionagents.
3.
Sameas#1
4.
Threedays
1.
One-day
workshop
Anumberofcal-
culationsshould
havebeenmade
duringprepara-
tionofabove
plans
2.
Oneday
3.
One-daywork-
shop
4.
Oneday
EXHIBIT1F:BUSINESSPLANF
RAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
Chapter
TimeRequired
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T1F:BUSINESSPLANF
RAMEWORKFORTARTINAENTERPRISE
Key
Questions
Method
PrincipalParticipants
apter
TimeRequired
85.
WhatisTA
RTINA'scurrent
financingmix?Whatisthepro-
jectedfina
ncingmixoverthe
next2yea
rs?Fromwherewill
additional
fundsbesourced?
Whatisth
eresourceacquisition
plan?
5.A.Workshop/discussion
B.
Do
norresearch
C.
Planningworkshop
5.
A.
Businessadvisor(SC),Financial
Director(SC),BusinessMana-
ger(TE),
FinanceManager(TE
),
BusinessAdvisor(SC)and
accountants
B.
BusinessAdvisor(SC),Busines
s
Manager(TE),
Program
Manager(TE),
Executive
Director(ADE)
C.
SameasAplusExecutive
Director(ADE)
5.A.
Onedayto
derivefinancial
calculations
B.
Fourweeksto
dodonor
research
C.
Onedayto
developplan
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