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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

14.4 What are the key issues concerning the poor?

Understanding the poor, meeting poverty reduction goals

The strategic plans have spelled out in general terms the partnership’s link to poverty reduction. In particular and in common with the strategic plan, the business plan will need to address how proposed service improvements will be undertaken so as to address the needs of the poor. It will address key issues such as:

  • service prioritisation and linkages;
  • the poverty and gender focus of the approach;
  • the approach to labour deployment; and
  • the approach to independent service providers.

In this regard the business plan also needs to:

  • develop understanding of the specific objectives for poor communities by:
    – carrying out participatory studies of livelihoods; and
    – exposing institutional and political marginalisation;
  • identify key components of poverty-focused activities;
  • identify and prioritise key concerns of the poor, for example, lack of choice, lack of affordability, inaccessibility, exploitation, insecurity of tenure and employment opportunities;
  • identify key actors and existing assets and delivery mechanisms: informal service providers, local NGO support, interdependent households and communities, municipal actors (community development, health, champions), and private operators; and
  • address lessons and concerns and include key actors as primary components in partnership framework.


Non-monetary attractiveness

A business plan often shows only the monetary value of the project. However, the partnership can bring non-monetary values to the customers – for instance, improvements to the state of the environment after waste management and sanitation services have been introduced/expanded.



  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