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MICRO: Enhancing Competitiveness of Micro-enterprises in Rural Areas

Learn about business planning, budgeting, and management skills to enhance the competitiveness of micro-enterprises in rural areas. Discover the purpose of making business plans, what they should include, and the time period for which they are made.

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MICRO: Enhancing Competitiveness of Micro-enterprises in Rural Areas

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  1. MICRO: Enhancing Competitiveness of Micro-enterprises in Rural Areas Module No.2: Business plan, Budgeting and Management skills Prepared by the Consortium for the project: “Irish Rural Link – National University of Ireland Maynooth- CDI – EEO GROUP SA- IHF asbl – IDP - Internet Web Solutions SL”

  2. Planning of operations in business Overview

  3. Planning of operations in business In this Unit, we will learn about business planning, the purpose of making plans and planning of all operations in business Unit Aim

  4. Planning of operations in business At the end of this module you will be able to: • Know the purpose for making business plans • Know what a business plan should include • Know for what time period business plans are made ExpectedLearningOutcomes

  5. Planning of operations in business Importance of micro companies • Microenterprises are the most important companies for every states’ economy. • They employ a large number of people and they offer many opportunities for them. • But, because of their small capacity they can be very weak and vulnerable.

  6. Planning of operations in business Purpose of making Business plans and Budgets (1/4) • To avoid risks surrounding microenterprises which represent a threat to their success and progress, they should use modern business tools in their daily work. • One of the most important business tools, to combat threats, is a Business plan. • Having a Business plan and budgeting are an integral part of every contemporary business.

  7. Planning of operations in business Purpose of making Business plans and Budgets (2/4) • With every business plan and even one showing the worst, you will be a step in front. • Why? because you can better see the planned activities and goals, and you will have a better overview of what is to come in the period ahead.

  8. Planning of operations in business Purpose of making Business plans and Budgets (3/4) In the period for which the business plan applies, you will have measures that will allow you to see at any moment: • How much you have achieved from the outset • Where you need to squeeze more out, • Where you need to dedicate more, and • Where you have the best results.

  9. Planning of operations in business Purpose of making Business plans and Budgets (4/4) • In the preparation of every business plan, it is obligatory to make an analysis of the market. • From this a precise picture of the needs of consumers and demand and supply of competition will be obtained. • An analysis will also show opportunities for cooperation with related companies.

  10. Every business plan should be composed of: Anarrative section and Afinancial section. Planning of operations in business What the business plan includes (1/3)

  11. Planning of operations in business What the business plan includes (2/3) The narrative part should be composed of the following: • Market analyses • Marketing plan • Production plan • Financial plan • Conclusion • Summary • Description of the situation in business and company • Goals • Description of the products and services

  12. Planning of operations in business What the business plan includes (3/3) The financial part of the business plan includes: • Afinancial plan and • Acalculation of all the parameters of the business. • Those parameters should be presented broken down by the various activities in one table – the budget.

  13. Planning of operations in business Period covered by the business plan  (1/7) • The business plan is made for an exact period of operation of the microenterprise. • This means that all data should be provided for the period which is covered by that business plan.

  14. Planning of operations in business Period covered by the business plan (2/7) Short period - up to one year: When the period is shorter, data should be more detailed and more precise.

  15. Planning of operations in business Period covered by the business plan (3/7) Medium period- from one year up to 3 years

  16. Planning of operations in business Period covered by the business plan (4/7) Long period – from 3 years up to 5 or more: For longer periods data will be more relative and they are mostly based on predictions.

  17. Planning of operations in business Period covered by the business plan (5/7) Most of the business plans for microenterprises are made for one year (short period), three years (medium period) and five years (long period).

  18. Planning of operations in business Period covered by the business plan (6/7) • The business plans for different periods should be constructed using the same rules for every year. • All above mentioned points should be included in every year of the business plan.

  19. Planning of operations in business Period covered by the business plan (7/7) • In the financial part of business plan a cash flow for every single year for the planning period should be made. • This will give the leading managers a map for financial transactions in the coming period.

  20. Thank you for your attention  End of Unit

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