Chapter 5: Business Plan, Reports & Proposals
Business Plan
● A business plan is a written document that describes in detail a company's objectives and how it plans to achieve its goals. It is a roadmap for the business, outlining its strategy, operations, marketing, and financial plans.
● A business plan can be used for a variety of purposes, including:
○ To attract investors or lenders
○ To guide the company's operations
○ To set goals and track progress
○ To identify and mitigate risks
○ To communicate the company's vision to employees and stakeholders
● There are four main types of business plans:
1. Mini-plans: These are short, concise plans that are typically used by small businesses or startups.
2. Presentation plans: These are more detailed plans that are designed to be presented to investors or lenders.
3. Working plans: These are comprehensive plans that are used to guide the day-to-day operations of the business.
4. What-if plans: These are contingency plans that are developed to address potential risks or challenges.
● The specific content of a business plan will vary depending on the type of business and its goals. However, most business plans typically include the following sections:
➢ Executive summary: This is a brief overview of the business plan.
➢ Company description: This section provides information about the business's history, products or services, and target market.
➢ Marketing plan: This section describes how the business will reach its target market and generate sales.
➢ Operations plan: This section describes how the business will produce its products or services and deliver them to customers.
➢ Financial plan: This section projects the business's financial performance over a period of time.
➢ Appendix: This section contains supporting documents, such as financial statements, marketing research, and product brochures.
What is an Executive Summary?
● An executive summary is a short document or section of a document produced for business purposes that provides an overview of the main points of a larger report.
● It is typically written for busy executives or decision-makers who may not have time to review the entire report.
● An executive summary should summarize the key points of the report, restate the purpose of the report, highlight the major points, and describe any results, conclusions, or recommendations from the report.
● It should include enough information so the reader can understand what is discussed in the full report, without having to read it
● Unlike an abstract, which is a short overview, an executive summary format is a condensed form of the documents contained in the proposal. Abstracts are more commonly used in academic and research-oriented writing and act as a teaser for the reader to see if they want to read on.
● The executive summary should grab the reader's attention and entice them to read through the larger, more in-depth documentation.
● An executive summary is used to outline each section of a business plan, investment proposal, or project proposal, and to introduce the business or project to investors and other stakeholders.
● You can write an executive summary for a business plan, project proposal, research document, or business case, among other documents and reports.
● According to the many books that have been written about executive summaries, as well as training courses, seminars and professional speakers, the agreed-upon length for an executive summary format should be about five to 10 per cent of the length of the whole report.
● What to Do After Writing an Executive Summary
➢ Write a draft of the executive summary. Don't worry about making it perfect, just get all the important information down.
➢ Review the draft carefully to make sure it is clear, concise, and focused on the needs of your potential client.
➢ Revise the draft as needed.
➢ Get feedback from others on the executive summary.
➢ Once you are happy with the executive summary, finalize it and submit it.
Executive Summary Example
For this executive summary example, we’ll imagine a company named XYZ Clothing, a small business that manufactures eco-friendly clothing products and it’s preparing a business plan to secure funding from new investors.
● Company Description
We are XYZ Clothing, an environmentally-friendly manufacturer of apparel. We’ve developed a unique method of production and sourcing of materials that allows us to create eco-friendly products at a low cost. We have intellectual property for our production processes and materials, which gives us an advantage in the market.
■ Mission: Our mission is to use recycled materials and sustainable methods of production to create clothing products that are great for our customers and our planet.
■ Vision: Becoming a leader in the apparel industry while generating a positive impact on the environment.
● Products & Services
We offer high-quality clothing products for men, women and all genders. (Here you should include pictures of your product portfolio to spark the interest of your readers)
● Industry & Market Analysis
Even though the fashion industry’s year-over-year growth has been affected by pandemics in recent years, the global apparel market is expected to continue growing at a steady pace. In addition, the market share of sustainable apparel has grown year-over-year at a higher pace than the overall fashion industry.
● Marketing Plan
Our marketing plan relies on the use of digital marketing strategies and online sales, which gives us a competitive advantage over traditional retailers that focus their marketing efforts on brick-and-mortar stores.
● Operations
Our production plant is able to recycle different types of plastic and cotton waste to turn it into materials that we use to manufacture our products. We’ve partnered with a transportation company that sorts and distributes our products inside Nepal efficiently and cost-effectively.
● Financial Planning
Our business is profitable, as documented in our balance sheet, income statement and cash flow statement. The company doesn’t have any significant debt that might compromise its continuity. These and other financial factors make it a healthy investment.
● Funding Request
We’re requesting funding for the expansion of our production capacity, which will allow us to increase our production output in order to meet our increasing customer demand, enter new markets, reduce our costs and improve our competitiveness.
Reports
● Report is a document containing information organized in a narrative, graphic, or tabular form, prepared on a periodic, recurring, regular, or as-required basis. Reports may refer to specific periods, events, occurrences, or subjects, and may be communicated or presented in oral or written form. It is an account of something that one has observed, heard, done or investigated.
● A report is written for a clear purpose and to a particular audience. In a report, specific information and evidence are presented, analyzed and applied to a particular problem or issue. It should be a complete and compact written document giving updated information about specific problems. It is a systematic presentation of facts, figures, recommendations, etc.
● Writing reports is also useful for reference. As far as possible, reports should cover all aspects of the subject matter of study. It is also a valuable document which gives information and guidance to the management information.
Purpose of Reports
■ To give information about the company's activities, progress, plans and problems.
■ To record events for future reference in decision-making.
■ To recommend specific action.
■ To justify and persuade readers about the need for action in controversial situations.
■ To present facts to the management to help decide the direction the business should choose.
Characteristics of Reports
■ Precision Accuracy of facts Relevance
■ Reader-orientation Objectivity of Recommendations Simple Language
■ Clarity Brevity (the attribute of being brief/concise) Grammatical Accuracy
Types of Reports
Broadly speaking, reports are of two types:
1. Formal reports that contain all essential elements of a report.
2. Semi-formal/informal reports
Reports are known by the names from which they get their purpose and form. They are usually identified as:
● Routine Reports: Reports on sales visit, progress report, safety report, accident report, equipment and maintenance report, information report, etc.
● Letter Reports: Reports in the form of letters.
● Memo Reports: Reports in the form of memo.
● Short Reports: Short reports are like formal reports in tone and other general qualities, but are simpler in design because they do not have all the front and back matter, and have a shorter main body.
Formal Reports
A formal report is usually written by a committee or group of people after investigation or research. Generally, the formal report has the following components:
1) Heading: There should be two headings to report
2) The Name of the Company
3) The Heading of the Report (e.g. The Report on Customer Satisfaction)
4) Terms of Reference: It includes the instructions given to someone when they are asked to consider or investigate a particular report, telling them what they must deal with and what they can ignore.
5) Procedure: It includes a brief description of the methods used to collect the information - it can be an interview, field visit, questionnaire distribution, etc
6) Findings: It is the longest section in a formal report, which includes the information gathered in each stage of the research/report. It has numbers. headings or subheadings.
7) Conclusions: In this section, the findings and their logical implications are discussed. The conclusions drawn from the findings are mentioned here.
8) Recommendations: In this section, the writer makes some suggestions on the basis of the information presented in the findings and conclusions. The writer can make suggestions for action to be taken to solve certain problems.
Informal Reports
● An informal report provides background and information without reaching an evaluation. These include simple reports like meeting minutes, expense reports, and progress or status updates.
● An analytical report provides much the same information as an informational report along with an evaluation or recommendation. These reports may include feasibility studies, justification reports, proposals, meeting minutes, expense reports, status updates, trips or conference reports, proposals or feasibility reports, etc.
Sample Routine Report
Road Accident in Butwal
A couple of days ago, I saw a deadly accident at Rajmarg Chauraha, Butwal. I was going to Oxford College to give lectures to BIM/BHM students. One red car was coming from my opposite side. I don't know what happened, but suddenly it collided with the road divider. Thank god! No harm had been done to the driver; the only car was badly damaged. Police were saying that the break failed and the car collided with the divider.
It was a terrible sound when it happened. I and other people around me ran fast. First, we took out a person from the car, offered him water and asked if there was anything wrong with his body. Right after, the person was taken to Lumbini Province Hospital nearby. One of us called the police and he took the car to the garage.
Since the person inside the car was critically injured, I called his family members to come to the hospital and complete the process. By that accident, I realised that life is full of uncertainties. As a human, it was my first duty to help someone who needed my help and exactly what I did.
When I went to bed at night, the scene of that accident was flashing as a slide show in my dreams, I couldn't sleep that night. I was still thinking of that man and his family. From that accident, I came to know the fact that life is given once to you so take care of yourself and your life.
Report in Memo Format
Elam Investment Company
Butwal 11, Devinagar, Rupandehi
www.abccompany.com.np
phone no + 977-71542917
email: info@abc.com
To: All Employees
From: Vijay Poudel, CEO
Subject: Company Revised Policy
Date: April 2, 2023
Attached is the report you requested, entitled "Company Revised Policy." This report is an analysis of a recent study conducted to minimize a significant increase in our overhead expenditure. Taking into consideration the data and figures presented by our Finance Manager, Elam Investment Company has decided to take some important cost-cutting measures. As a result, some of the company's policies have been revised. All employees are requested to go through the attached copy of the new policies.
A summary of the main changes is presented below:
● Employees are no longer authorized to use office landlines for personal calls.
● The annual family picnic will be replaced with an annual dinner for employees in order to save travelling costs.
● Official trips must be planned and confirmed at least 1 month in advance to avoid the high last-minute booking charges.
● All memos, official letters, and notices must be circulated in the form of email messages to save the cost of paper and printing.
● Supervisors should ensure that office stationery is not misused by their subordinates. Employees are not allowed to take stationery items to the home.
All employees must abide by new rules. The company needs the cooperation of the entire staff to overcome this challenge. The small changes made to the old policies are going to make a noticeable difference. The company does not want to resort to drastic measures such as downsizing, cutting down salaries and holding back increments. Therefore, it is required that employees play their part with responsibility towards the reduction of our overall expenditure.
in case, anyone has any questions or concerns about these changes, kindly contact the admin staff during office hours. We also look forward to more suggestions regarding this matter and welcome your ideas.
Thank you for your cooperation.
Encl. Company Revised Policy
Progress Report in Letter Format
Ms. Geeta Thapa
Communication Manager
Ace International Bank,
Tilottama 5, Manigram, Rupandehi
September 27, 2022
Dear Ms Thapa,
This report will bring you up-to-date on the details of your contracted Writing Seminar to be conducted on October 5, 6, and 7, 2022 on our premises to upgrade the employees' skills.
The progression so far is highlighted below:
➢ Seminar announcements were sent to our 54 departments on September 19.
➢ Twenty registrants from 15 departments are confirmed.
➢ Training Room C has been scheduled from 9:00 a.m. to 5:00 p.m. on October 5, 6, and 7.
➢ Memos to departmental supervisors were sent on September 21 to explain cost centre billing.
➢ Multimedia and other devices required have been managed.
➢ The finalizing process of chief guests is yet to be completed.
If you have any questions, please do let me know.
Regards,
Hari Bhatta
Sample Formal Report
Oxford College (Company's Name)
Report on Language Class Requirement (Title)
Terms of Reference
With the introduction of the Semester system in BBS, the college has made English script a compulsory mode of communication. Before that, the English script was optional. The problem of the English language in our students has been noticed in the classrooms and outside. The research was done to find out how many students need English Language Courses, as requested by Mr. Manoj Marasini, the Campus Chief, on April 15, 2021.
Procedures
1. Questionnaires were distributed to 150 students.
2. Interviews were also conducted along with face-to-face discussions between 15 to 20 April
Findings
➢ While interviewing all students 75 students (50%) unacceptably lacked correctness in writing and fluency in speaking English.
➢ Only 37 (25%) students were perfect in four levels of linguistic interaction - reading, listening, and writing.
➢ The remaining 25% of students were moderate in English language.
Conclusions
➢ The students need to use correct English in their answers to the exam questions in different courses and subjects.
➢ If they are given some knowledge about the basics of spoken and written English, they can go a long way towards their improvement.
Recommendations
➢ English Language Courses should be run in the Department of English on our campus so as to enable our students to deliver answers in English.
➢ It is also recommended that the campus should look into the financial aspects of the mentioned course as early as possible.
Formal Report in Letter Format
April 14, 2020
The Sales Director
Satyawoti Soap Industries
Subject: Report on Decline of Business
Dear Sir,
In accordance with your instruction in your letter dispatched on March 28 2021, I visited your Butwal Office, where I met the manager, the salesperson and all others concerned including many shopkeepers who stock and sell our products and also the members of the public. The results of my findings are given below:
The sales of our soaps have been quite satisfactory in the month of February till another Soap Company based in Dang appeared in the market. Since this soap is new and attractively packaged, and since the new company wants to obtain a footing (grip/position) in the market, the price is relatively low. The result is that this new soap brand has caught the eyes of the public and is now being sold like hotcakes.
Another reason why the new soap has begun replacing our brand is the intense publicity campaign started by the new company. Our publicity, on the other hand, is ineffective and is lagging far behind our standards. Moreover, our soaps are still packaged in the same old design that began seven years ago. In view of these findings, I recommend that:
➢ The quality of our soap should be improved; a new brand of fragment quality must be developed. This should be done as soon as possible.
When the newly improved brands are sent to the market, they should be packaged at a relatively low to come to a competitive level.
➢ Immediate steps should be taken to organize a strong publicity and advertising campaign. The sooner it is done, the better it is, otherwise the new company might easily capture the local market. Our company would do well to acquire the services of a competent commercial artist to help us publish our product effectively.
In closing, I am pleased to report that all our employees at our Butwal Office are performing their duties most satisfactorily. If you expect any further clarification from my side, you may call me at your comfortable time.
Yours faithfully,
Bivek Sharma
Sample Short Formal Report
Report on the Popularity of Fast Food Restaurants in Parsa, Lumbini
Terms of Reference:
This report is the result of the request made by the director, of ABC Restaurant, Parsa, Lumbini on November 20, 2021, to do research on the growing popularity of fast food restaurants in the city. He also asked to supply recommendations.
Procedures:
➢ Questionnaires were distributed to 200 people
➢ Interviews were also conducted along with face-to-face discussions between December 1 to December 15.
Findings:
After 15-day research, we got the following findings:
➢ 50 people had good sources of income and liked to visit restaurants on different occasions.
➢ 50 people were interested in visiting such a restaurant supplying fresh items with much variety.
➢ 100 people told us that they were interested in celebrating New Year Party, Birthday Party and other different gatherings in fast food restaurants so that they would get the freedom to enjoy with full refreshment.
➢ 100 women participants told us that at the weekend, they preferred to eat various cuisines in restaurants with soft drinks.
➢ Most of them told us it's a trend among youngsters as well as adults to go to restaurants to have photo shoots and post on social media platforms.
Recommendations:
➢ It is recommended that we should open a new outlet for our fast food restaurant as there is a growing trend of visiting restaurants now. It is also recommended that our service should be with a wide variety of food items as Parsa is a culturally-diversified city with good income source of people.
➢ It is recommended that investment in fast food restaurants can be a good way of making a fortune.
➢ It is strongly recommended that a full-time cameraperson should be
➢ appointed.
➢ It is also recommended that the venue should be made photo-friendly with attractive decorations.
(Research Team, ABC Fast Food Restaurant)
PROPOSALS
A business proposal is an essential marketing document that helps to cultivate an initial professional relationship between an organization and a donor over a project to be implemented.
➢ The proposal outlines the plan of the implementing organization for the project, giving extensive information about the intention, for implementing it, the ways to manage it and the results to be delivered from it.
➢ It is also known as a written offer from a seller to a prospective buyer. The business proposal puts the buyer’s requirements in a context that favours the sellers' products and services and educates the buyer about the capabilities of the seller in satisfying their needs. Business proposals are mainly written:
● to get the project accepted
● to get the writer of the proposal accepted to do the job
Essentials for Good Proposals
● Defining Problems
● The solution to the problems
● What will you provide?
● Delivering your promise
● Benefits offered
● Deadline
● Cost
Types of Proposal
● Proposals are a special category of reports that combine information delivery and persuasive communication. When it comes time to write a proposal you must have a structured persuasion for your internal or external audiences. The proposal is a key step in the complex sales process.
● Proposals are used in the business industry to persuade an idea to your audience intended. There are two types of proposals which are:
i. Solicited: A solicited proposal is when the customer asks for a proposal. They may ask verbally or they may issue a written Request for Proposals (RFP).
ii. Unsolicited: An unsolicited proposal is when you send them a proposal they haven't even asked for because you think they should buy from you or take some action.
Solicited Business Proposal for Marketing Services: Letter Format
● This sample proposal is an agreement to provide marketing services:
Prawesh Neupane
Elam Marketing Technique Service Provider, Pvt. Ltd.
Butwal 11, Sukkhanagar, Rupandehi
January 17, 2021
Mr. Om Bahadur Khatri, Marketing Director
Unilever Multinational Company
Siddharthanagar – 7, Rupandehi, Nepal
Dear Mr. Khatri,
I am Prawesh Neupane of ElM Marketing Technique Service Provider. Based on our conversation last Sunday, I am pleased to propose our services. As I talked to you earlier our company has been providing Marketing Technique Services to companies like yours for more than 25 years. We thoroughly understand the needs of marketing firms in our locale and know how to provide the best services for your needs.
We are justifiably proud of our record of providing highly rated customer services, with an equally responsive 24-hour turnaround time on almost every request. With a dedicated team, we provide services to help you handle or manage situations of crisis, promote positive messages about your company, handle requests from the media and positively manage your reputation.
We have three customizable options that we would love to provide for you:
a) A Full Representation Package: With this all-inclusive package, our company would manage your company reputation, create positive publicity, teach your staff effective methods for handling the media and provide support for managing crises. We also provide encouraging internal PR support to help your staff be fully appreciative and supportive of your company mission. We normally take RS 1,00,000 for 7-day training.
b) A Comprehensive External Representation Program: With this alternative, our company provides only strong public-facing support. We will teach your staff as to how to develop a crisis-management response plan and employ supportive methods to engage the media in providing positive coverage. We take Rs. 75, 000 for 7 days of training.
c) The Public Relations and Rapport Building Package: Here, we will teach your staff secret keys to deal with the public and maintain good rapport for future interactions and transactions. We take Rs. 65, 000 for 7 days of training.
I would love to meet with you and demonstrate how we can eliminate your public relations and marketing concerns. I can call you on Monday, January 20 to address your concerns and answer questions about the three options that we can offer.
Sincerely,
Prawesh Neupane
Chief Public Relations Officer
Elam Innovations
Unsolicited Business Proposal for Sponsorship: Letter Formal
Shreebha Sharma
Elam Innovations
Tilottama 6, Manigram, Rupandehi, Nepal
July 22, 2021
Mr. Yajan Bashyal
Director, Himalayan Construction Company
Butwal 13, Devinagar, Butwal, Rupandehi, Nepal
Dear Mr. Bashyal
On behalf of Elam Innovations, I would like to thank you for the very generous support you have given to our annual holiday celebrations over the last few years.
This year, we once again have an available sponsorship opportunity at our Annual Concert Program. Last year, thanks to our generous sponsors like you, we collected more than Rs. 8,00,000, which allowed us to provide clothing, food, coaching for job interviews and assistance to different kids to the needy ones.
This year, the 2021 event is being held on Friday and Saturday, October 15 and 16, with three levels of available sponsorship:
● The Platinum Sponsor: We feature your company name and logo on our prominently displayed banner and all advertising and marketing material for the event advertising. We feature your company logo prominently on the event t-shirt. The cost of this sponsorship is Rs. 70,000.
● The Gold Sponsor: We prominently feature your company name and logo on the banner and include your logo on the event T-shirt. Aside from that, we will offer 20 free tickets for your employees. The cost of this sponsorship is Rs. 80,000
● The Silver Sponsor: We display your company logo on the event T-shirt. The cost of this sponsorship is Rs. 44,000.
We expect to continue our relationship with Nepal Construction Company to make our 2021 Annual Concert Event even more successful than that of last year.
I look forward to speaking with you to discuss our initiative and answer any questions you may have.
Sincerely,
Shree
Unsolicited Business Proposal Sample:
Om Catering
Tilottama 5, Manigram, Rupandehi
Phone No: +977-71560878
email: contact@omcatering.com
website:www.omcatering.com
October 13, 2021
Mr Manoj Marasini,
The Campus Chief
Oxford College
Butwal 13, Deepnagar, Rupandehi
Dear Mr. Marasini,
My catering company can help you lower the cost of your events by 50 percent. We provide delicious meals and special desserts at half the cost because we use fresh, local ingredients. I believe we can give you substantial savings on every event.
I have attended several of your events and understand the quality and amount of food you require to make it a success. I would be happy to meet you and go over the menus for several different types of meals and snacks and show you how we provide quality food at reduced prices.
I have been in the catering business for 10 years and have 15 repeat customers every year. We'll provide every option including veg, non-veg, continental, Newari, Indian, and of course, typical Nepali food items.
Please call me at the phone number or email me at the email address and I will be happy to meet you at a time that is convenient for you.
Sincerely,
Bikash Shrestha
End of the Part
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