The business plan document serves as a key communication and marketing tool for both internal and external shareholders and turns the strategic objectives and goals into an operational plan. This will help one to structure its business, convince the investors about the concept of the business as well as track the progress of growth. In case of an MFI planning to undergo transformation, the business plan needs to reflect the new business paradigm. The business plan will thus need to address particular issues and topics unique to transformation.
Vision and Mission
The expanded target market and addition of new products and services, typical in transformation, is likely to require revising or crating a new vision and mission for the regulated organization.
Ownership and governance
The anticipated plan for the new MFI’s ownership structure and a general discussion of the preferred investor types will be laid down. Finally the section would provide a brief description of the proposed governance structure including the no. of board members and committee.
Market and Marketing
This will help layout the overall market framework and clearly identify where the MFI’s target market falls. This includes a brief description of the overall market size, the expanded competition with its respective geographic presence, the MFI’s market share and its plan for geographic expansion.
Products and Services
This will help structure the thoughts of what one plans to contribute through its organization. The B-plan will include both the current product and services currently offered by the institution and new products or services planned for the future. Additionally, a general description of each product type will be outlined.
Human Resources
This is one important part of the B-plan which includes the organizational chart, a description of management positions as well as anticipated plan for building staff’s capacity through training programs.
Management Information systems (MIS)
This will lay out the MFI’s MIS plan including the anticipated hardware, software and other MIS purchases.
Funding Strategy
The B plan will identify the amount of funding needed and the various funding sources available. This will also include exploring the range of possible debt and equity combination ensuring adherence to regulatory requirements for leverage and at the same time providing adequate liquidity and sufficient returns to the investors.
Financial Projections
It will project the financial impact of the business growth. Additionally, compliance with prudential ratios, such as capital adequacy and liquidity will be projected. The critical benchmarks and targets for success will be identified. This will also include determination of the anticipated investment made and cost incurred to achieve these stipulated benchmarks and targets set. |
