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Module 3 - 14 Preparing Business Plans

14.1 What are the objectives of business plans?
14.2 What are the key components of a business plan?
14.3 What are the common mistakes in preparing business plans?
14.4 What are the key issues concerning the poor?
Further guidance

Key Questions:

Why prepare a business plan?
What does a business plan entail?
How does a business plan help to achieve poverty reduction objectives?

Related Tools:

4 Collecting Information
6 Objectives of PPPs

PPP Development Stage – Preparing Business Plans

14.1 What are the objectives of business plans?

A business plan is a key part of running a partnership successfully and achieving a strategy. It provides discipline for the municipal management to review progress thoroughly and to set objectives, and for the directors to commit to supporting the budget and investment plans. The plan is a concise summary of activities surrounding the creation or expansion of the partnership. It describes the service, the customers, the competition, the production and marketing plans, the management, the financing and anything else relating to the service that the PPP option will provide. The business plan is the game plan. It sets objectives and how they will be obtained on paper.

A business plan is necessary for three main reasons:

  • it gives the municipal management a current assessment of the partnership as well as a roadmap for the future;
  • it helps a PPP option grow, both organically and through outside funding; and
  • it is essential to have an up-to-date business plan in order to secure financing.

Few people would attempt to build a new house without first preparing detailed plans. The same is true for planning to build a partnership, no matter the size of the business. It is a means of discovering the problems and pitfalls managers might encounter before they happen, so that they will be able to make the right moves to avoid them and take advantage of opportunities as they come along. A good plan puts a lot of valuable information at the managers’ fingertips, ready to make tough decisions and manage change in their operations.

A business plan is mandatory if the municipal management wants to obtain capital from private investors, venture capitalists or commercial lenders such as banks or trust companies. More government financial assistance programmes are requesting a business plan to be submitted with applications for assistance. This is because a well prepared plan serves as tangible evidence of an organisation’s ability to manage, plan and communicate – that is, all skills needed to operate successful businesses or partnerships.



  S T A R T P A G E  
  Module 1 - Before PPPs  
  01-Starting Out  
  02-Strategic Planning  
  Module 2 - Preparation Stage  
  03-Planning & Organising  
  04-Collecting Information  
  Module 3 - PPP Development Stage  
  05-Identifying Constraints  
  06-Defining Objectives  
  07-Defing Parameters (Scope)  
  08-Establishing Principles  
  09-Identifying Partners  
  10-Establishing Partnership  
  11-Selecting Options  
  12-Financing (Investment)  
  13-Financing (Cost Recovery)  
  14-Preparing Business Plans  
  15-Regulating the PPP  
  Module 4 - Implementation  
  16-Tendering & Procurement  
  17-Negotiating & Contracting  
  18-Managing PPPs  
  19-Monitoring & Evaluation  
  20-Managing Conflict  
  21-Capacity Development  
  Contact Information