Road Construction Business Plan: Strategy, Objectives, and Implementation

1. Module 2: Session 2 Introduction to the Business Plan Module 2: Session 2

2. Session Objectives Module 2: Session 2 Stress the importance of the planning function as a key success factor Introduce a format and contents of a business plan Setting objectives and targets Formulating strategy Identifying and scheduling planned activity

3. What is a business plan? Module 2: Session 2 • A business plan describes; • Scope of the business and its philosophy • What to do–future business objectives • How to do it – strategy and activities to achieve objectives and • When to do it- the timing and sequencing of activities

4. Importance of a business plan Module 2: Session 2 • Shows business direction generally • Enables rational and informed financing decisions by stakeholders • Sets key performance indicators • Spots potential pitfalls before they happen, e.g. cash shortfalls, man power and skills gap, capital needs etc. The business plan mobilizes and focuses resources to achieve specified and known results.

5. Possible target audience Module 2: Session 2 • Owners of the business • Management and staff • Potential financiers such as banks • Potential partners • Potential clients • The plan is a means of showing owners, potential investors and lenders why and how the business will succeed.

6. Business plan format and contents Module 2: Session 2 • Cover page and table of contents • Executive summary • General description of the business and its environment • Statement of mission, vision and core values • Goals , objectives and targets. • Strategic and operational plans (organizational, marketing, operations, financial). • Business implementation action plans. • Financial projections (performance, cash flow and position) • Key performance indicators (KPIs). • Relevant appendices.

7. General description of the business Module 2: Session 2 • Information about the road construction industry and its attractiveness, • Evaluation of potential market [gravel roads at National, District and Community] • Past business performance • Organization capacity- branches, key personnel • SWOT • Competitive advantage: What makes this business unique, how will the business do things differently to manage competition .

8. Strategic statements:Example 1 Module 2: Session 2 • Mission: Deliver road construction services in Uganda • Vision statement: Become leading road contractor in the region • Goals: Provide highest quality road construction • Objectives : To achieve 99% compliance to road sector standards • Strategy: Staff training, step up supervision and works inspection.

9. Strategic Statement: Example 2 Module 2: Session 2 • Mission: Deliver road construction services in Uganda • Vision: Become the leading road contractor in the region • Goals: Deliver above average return to our investors • Objectives: Increase after tax profit by 30% in five years • Strategy: Increase turnover, gear up capital structure.

10. Operations plan: e.g. Marketing Plan Module 2: Session 2 • Set target business volume (24kms per year) • Strategy to get jobs and beat competition: • Target LGs, UNRA, large corporations. • Pricing and promotion activities say: • Review pricing policy • Print diaries/calendars • Participation in UNABCEC • Brand the premises and trucks

11. Operations plan: Operations Module 2: Session 2 Determine capacity requirement to do set targets Machine hours required Equipment to be owned or hired Fuel Materials Manpower Consumables

12. Operations plans: Other Departments • Management • Structure and policy • Administration • Transport • Maintenance • Office running • Human resources • Staff attraction and retention • Staff training and development • Occupational health and safety • Finance and accounting • Performance, cash flow and position forecasts • Capital implications Module 2: Session 2

13. Developing activity plans Module 2: Session 2 For every goal break it down into objectives and activities Indicate the time for the activity Indicate the person responsible for the activity Indicate the output for that activity Example:

14. Example of an activity plan Module 2: Session 2

15. Discussions for all groups Module 2: Session 2 • Review the work done in the overview to strategic planning • Propose a mission and vision statement for Munaku Contractors Ltd. • Formulate possible goals and objectives for the following five years and set targets. • Formulate strategy for at least one objective. • Develop an activity plan for at least one objective.

16. THE END Q &A Module 2: Session 2

17. Supporting documents Module 2: Session 2 • Details of projections • Extracts of past performance • Location, address and website details • Promotional materials e.g. schedule of previous contracts • Licenses and other legal documents • Key management • Pictures of say roads done and other outputs • Professional reference (Letters of recommendation) • Published information about the firm or industry. • Artistic impressions