How to Write 5-Page Production & Manufacturing Business Plan for Yourself – Industrial wares, technical wares, household wares, ICT wares, all could be manufactured. Other matters include, manpower requirements, man-hour calculations, industrial estates, industrial outputs cost classifications into cost variables as fixed costs, production costs, unit cost, wage determinations, organisational synergy and value chain analysis.
As a mater of facts, Manufacturing outfits get complex when you consider issues relating to industrial training, share capitalisation, stock exchange prices for public limited liability companies, mergers and acquisitions, due diligence and reverse due diligence processes etc.
Whichever level you find yourself, a business plan is very necessary. As you can see from above most manufacturing/production outfits require elaborate business plans. However, if you are just into producing one product or the other, and would want to know how to plan your business, you can start like this – How to Write 5-Page Production & Manufacturing Business Plan for Yourself
How to Write 5-Page Production & Manufacturing Business Plan – PART ONE:
I want you to clear certain preliminary issues in your business before we go on. Therefore, the part one of this write up centres on the preliminaries of the business plan. A Production or manufacturing business is different from marketing businesses.
However, the matters involved here are not actually part of your business plan, but they are surveys, researches, or feasibility studies into the types of the businesses you may want to venture into. You have to go through them one after the other. They are necessary miles stones you must make before you start the production or manufacturing business plan and the production business proper, especially a brief business plan like – How to Write 5-Page Production & Manufacturing Business Plan for Yourself
Production or Manufacturing Business Ideas:
You must have good ideas of the type of ware you want to produce or manufacture. This business plan is on Production business, therefore you must arm yourself with reasonable numbers of various manufacturing/production businesses you can come across. I have some here for you.
You can manufacture or produce any of the following: soft drinks, beverages, wines, pharmaceutical products, Furniture, laboratory equipment, confectioneries – snacks, bread etc., shoes – sandals, belts etc., hair care products, tailoring materials, cosmetics, wedding accessories – English and traditional, photographic materials, plastic products – chairs, water containers, kitchen plastic ware etc., kitchen utensils, table water, Fashion accessories etc.
Listed above are over 20 business ideas you could do. You can also make combinations of them for variety sake. E.g. A furniture maker can make for schools, churches, Offices, and for homes. But one can specialise on each of these.
The Capital Requirement @ How to Write 5-Page Production & Manufacturing Business Plan:
How much fund have you saved for this? Manufacturing business needs much capital especially for machinery, plants and tools. If what you have saved is okay, well you are done here. Otherwise, it’s time to list out also your potential sources of capital. Can you get from your wife, children, in-laws, brother, sisters, friends, your church, cooperative society, or do you have to look for a partner who will bring in some money. Or would you need to borrow and from where – friends or bank or other money lenders. Can you get an investor?
Truly speaking, this is the preliminary part of this capital issue. Your business forecast and financial analysis will finally determine how much fund you need. Ones I did a business plan of this nature, but the CAPEX (Capital expenditure
) became a challenge.
Your Business Peculiarities – SWOT Feasibility Studies:
Every business has its own peculiarities. Therefore what constitute strength to one firm in a line of business, may not be the strength for another firm on the same line of business. Therefore, look for what could be the strength of your business considering your capital and location. A manufacturing outfit has peculiar localisation challenges that you must note.
Do the same for Weaknesses. Check out the draw backs in the business. Why do people fail or success in that line of business? Watch out what opportunities that are available for that business to grow. Is it the supply or demand side of the value chain?. What are those that threaten the survival of the business? In a summary way, you will highlight all of these in this your 5-page business plan.
The Business Location:
Now watch your location. The type of wares you produce may be determined by the type of people or other businesses around your business area.
Proximity to market, supply, transport, industrial zone, market area, density populated areas are some of the determinants of business location. Others are social reasons like one’s home town.
Localisation as an economic principles, entails that your business should be attracted to a location by what will prosper it. You should look for what will prosper your business before your locate your factory.
The Business Legal Status:
The next thing is that you have to consider the legal nature of your business. In Nigeria if you want to do business you have to incorporate a business/company, or you do business name registration. All of these you do with Corporate Affairs Commission. No business should go on without due registration.
I can register your business for you in 5 days. As an accredited consultant with the Corporate Affairs
Commission (CAC) of Nigeria, your certificate will be with you in 5 days time. It will also take me only two hours after that to get your TIN from the Federal Inland ‘revenue. Just put a call across to me on +232 8034347851 or e-mail at email@example.com
Some business will also need to be registered with the local government authorities. Or regulating government agencies like National Agency for Food, Drug Administration Control (NAFDAC) or Standard Organisation of Nigeria
(SON). Ensure you comply with these regulations before you start your business. As a business consultant, I can help you too.
Industrial Relations relate to all inclusive industrial activities at a time. Therefore, manpower requirements, man-hour calculations, cost classifications, wage determinations, industrial training, share capitalisation, stock exchange prices, mergers and acquisitions, due diligence and reverse due diligence processes etc.are all involved.
How to Write 5-Page Production & Manufacturing Business Plan – PART TWO
YOUR 5-PAGE BUSINESS PLAN: NOW START:
A page of writing paper can contain between 30 and 35 lines of sentences. Therefore, you have to manage this page to contain your Title – ABC Manufacturing/Production, 3-Year Business Plan. So, the business name, address and other locational highlight must be on this first page.
Use the last part of this page to print the content and page locations.
Divide this page into four parts:
- First part is to be devoted to the Executive Summary. Ten sentences will do for this.
- The second part goes for the company/business overview
- Third part goes for Management team highlights, while the
- Fourth part will contain the summary of the SWOT Analysis….as discussed above.
This page will be divided into two parts.
The first half will be devoted to your business value chain analysis – your product or services – what are they? Where are your raw materials coming from? What and what raw materials do you use? How do you use them? What equipment do you need?
They second half will be devoted to your marketing strategies – list out up to 15 activities you will employ to market your wares. Do that now. Take up you pencil and begin to write – prepare a flyer, a big launch inviting government dignitaries and the industrial juggernauts around, ..list out the other ones.
This page is for your business forecast:
You have to forecast your Production and sales, Purchase of raw materials. Operating expenses (OPEX), Capital expenses (CAPEX). All of these will help you calculate – variable and fixed costs of your operations. Break-even analysis
is very important here. You must arrive at a unit cost that will make your operation profitable. Remember that the profit you generate here is what will take care of the administration of the business.
Even though this is a few page business plan for yourself, the technicalities involved here may need the attention of an expert. Two day service will enable me get you
what you want here for a minimal cost.
This page will also contain, a Brief Profit or loss account – may be inform of income statement
, Balance sheet – Just list your assets- including cash at hand and at bank – one side and your liabilities plus your capital one side – you will see that the two sides will be equal.
This should have the final analysis of the whole plan. Just divide the page into two, using one part for the feasibility conclusions – all you did in page four. That page should tell you whether the business should go on or not. Therefore, draw your conclusions from there.
Use the second part to make your recommendations. Even though you are making this to yourself, yes it’s good for you to note that at this date and based on certain parameters you made the decision to go on in this business.
This is why we advise that every business should have something like this. If you can do this (business plan) in two pages, that will be alright as long as you know what you are doing, and can always come back to it for reappraisals.
Oh! My Dear; What Next?
You are done, and good to go on this business, what next? Business plan doesn’t generate turnover, so I advise you do the following:
- Take this 5 pages along with you every where you go
- Make plans to actualise your forecasts – Get your equipment, machineries and tools ready – it’s a one-off expenditure. Some will last like 10 year for you. Buy good ones.
- Make frequent reviews – watch if you are making it
- Adjust and continue
- If you can’t do this plan to cover 3 or more year now, make it a rolling plan
- Contact me for some coaching on this
- Contact me for your first year business financial statements and Tax clearance certificate.
- If the first year is gone, take up the second year.
- Adjust figures for the second year. Carry on as in the first year – frequent review
- At the end of the second year adjust for the third year,
- The process continues,
- Contact ME now for a professional business plan so that your growth in the business will be sustained – Expansion business plan.
Thanks for going through this exercise. There are a lot of business plan samples in this website. Write whatever word or phrase at the search tab and you will get what you want.
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Founder/Managing Partner of Complete Full Marks Consultants Ltd. An Economist turned Chattered Accountant and Tax Practitioner with over 37 years of industrial experience.