PPM 508 PROJECT PLANNING AND MANAGEMENT

HOURS: 80

CREDITS: 8

Module outcomes
1. Explain concepts and principles of health project management.
2. Explain project management cycle.
3. Evaluate project appraisal
4. Develop grant project proposal
5. Develop business plan.
Module units
NO UNIT NAME HOURS
Theory Practical
1 Introduction to health project management 10 00
2 Project management cycle 18 02
3 Project appraisal 08 02
4 Grant project proposal development 10 10
5 Business plan development 10 10

Introduction to project management

Definition of Terms
Project
A project is a systematic, goal-oriented, temporary and one-time endeavor, undertaken to create a
unique product or service.
Temporary means that it has a fixed start and end date.
Unique means that the product or service that results from the project should be different from what
existed previously.
A project is a temporary process, which has a clearly defined start and end time, a set of tasks, and a
budget, that is developed to accomplish a well-defined goal or objective.
A project is a temporary effort of sequential activities designed to accomplish a unique purpose.
A clear set of activities with related inputs and outputs aimed to achieve objectives and goals linked to
anticipated (desired) effects and impacts in a target population (sometimes called ‘beneficiaries’).
A project is a group of inter-related activities, constrained by time, cost, and scope, designed to deliver a
unique purpose.
A project is a temporary endeavor undertaken to create a unique product or service.
Temporary means that the project has an end date. Unique means that the project's result is different
from the results of other functions of the organization.
An undertaking that encompasses a set of tasks or activities having a definable starting point and well
defined objectives. Usually each task has a planned completion date (due date) and assigned resources
Project Management
The art of organizing, leading, reporting and completing a project through people.
Act of managing an endeavor to bring it to the required results.
In Project Management context used is used to describe planning, monitoring and controlling activities
that must be put in place for the project to reach its required results.
Project management refers to the application of knowledge, skills, tools and techniques to project
activities to meet the project requirements.
In other words, Project Management is the planning, implementing, and monitoring of project activities
to meet project objectives, achieved by effectively controlling and balancing the constraints of time,
cost, and scope in producing quality deliverables that meet or exceed the expectations of the project
stakeholders.
The concise definition from the above concepts is “Project management is the process of combining
systems, techniques, and knowledge to complete a project within established goals of time, budget,
and scope.”
Project managers must not only strive to meet specific scope, time, cost, and quality requirements of
projects, they must also facilitate the entire process to meet the needs and expectations of the people
involved in or affected by project activities.
A project manager is a person who causes things to happen
Program
Project and program often causes confusion, both are directed towards goals and require plans and
resources to achieve their goals and both use similar tools, methods and policies. Difference lies
primarily in scope and time horizon. A program therefore is a series of coordinated, related multiple
projects that continue over extended time intended to achieve a specific goal.

Project Management process

This is an administration process for the planning and control of the services or the implementation of
the project. This process begin after the approval by the customer, it is based on the contract and is
targeted on initial values of the process and management of the project.
Project management cycle
Involves the following phases:
1. Identification Phase
2. Formulation Phase
3. Implementation Phase
4. Evaluation Phase
Identification phase
It involves gaining a comprehensive view of the project context and the baseline situation with regard to
the targeted health issues.
It involves the following activities:
1. Stakeholder analysis
2. Problem analysis
3. Objectives analysis
4. Strategy analysis
1. Stakeholder Analysis
Any individuals, groups of people, institutions or firms that may have a relationship with the project are
defined as stakeholders.
In order to maximize the social and institutional benefits of the project and minimize its negative
impacts, stakeholder analysis identifies all likely to be affected (either positively or negatively), and
how it is important that stakeholder analysis take place at an early stage in the identification of a
project.
Stakeholders are identified along criteria of interest and influence. For example, it is important to
identify those that have a direct interest in the project, whether they have influence over it or not.
On the other hand, it is vital to identify those that have influence over the project, even if they are not
directly interested, as they have the power to determine its success or failure.
Groups are often identified along political, social, class or status lines.

Purpose of Stakeholder Analysis

Identify who has an interest in the Project's success or failure, and what the interest is.
Assess who has influence over the Project.
Analyze the possible political and social impacts upon the Project.
Steps in Stakeholder Analysis
Step 1: Identification of Stakeholders
Important in identifying stakeholders who:
- Might be affected by the project
- Might affect the project
- Might become useful project partners even though the project may also be implemented without
their contribution.
- Might become conflict partners as they may face the project as a threat for their role and
interests.
- Will be involved in the project in any way.
Step 2: Categorize them according to their role:
- Whether the stakeholder group is supposed to work in the project, co-finance it, or benefit from
the project.
- Whether it is a supporting organization.
- Whether it has a controlling function, etc.
Step 3: Characterize them from a social and organizational point of view, taking as well a gender
perspective:
- Their social and economic characteristics
- Their structure / organization
- How the decisions are made
Step 4: Analyze them with regard to expectations and relationships:
- Identify their interests and expectations in the project
- Analyze the links and relationships between the various stakeholder groups.
Step 5. Characterize their sensitivity towards and in respect of cross-cutting issues (gender
equality, environmental protection, etc.): \
- Whether they are sensitive to these issues.
- Whether they consider impact of their tasks and activities on these issues.
Step 6. Assess the potential, resources and capacities of the stakeholders:
o The existing strengths on which the project could be build up.
o The potential contributions on which the project could be build up.
o The existing deficiencies to be considered by the project.
Step 7. Draw conclusions and make recommendations for the project
 ◦ How to take the group (stakeholders) into account
◦ Which action to undertake.
◦ How to deal with the group
2. Problem Analysis
Projects begins from an assumption that development projects stem from existing problems that require
intervention and change. But often the problem is not clearly defined, or may not be the actual problem.
In order to determine what the real problems are, its important to determine the cause and effect
relationship between problems. A tool that enables this to be done is called the Problem Tree. Like
any other tree, the problem tree has three parts:
 Trunk
 Roots
 Branches.
 The trunk is the main problem.
 The roots represent the causes of the main problem.
 The branches represent the effects of the problem
STEPS IN DEVELOPING A PROBLEM TREE
1. Identify the focal problem
2. Identify immediate and direct causes of the focal problem.
3. Identify immediate and direct effects of the focal problem.
1. Identify the focal problem
 A project or initiative should have a specific problem it seeks to overcome.
 Discuss and agree on a definition of the problem as this is essential for developing an accurate
problem tree.
 When your group is happy with the wording of the problem, place it at the centre of the tree.
2. Identify immediate and direct causes of the focal problem.
 Focus on the primary causes of the problem.
 Each cause should be phrased in negative terms.
 Place each primary cause below the core problem on the tree.
 Secondary causes should also be placed on the tree, underneath the primary causes.
 Gradually, you should start to see a number of indirect and direct causes of the problem emerge,
forming the roots of the tree.
3. Identify immediate and direct effects of the focal problem.
 Focus on the consequences of the problem. What effect does it have?
 Consider social, environmental, economic, political and technological consequences.
 Place effects above the focal problem.
 Primary effects should be directly above the core/focal problem, with secondary effects placed at
the top of the tree
 Place effects above the focal problem.
 Primary effects should be directly above the core/focal problem, with secondary effects placed at
the top of the tree
Advantages of Problem Analysis
 The problem can be broken down into manageable and definable chunks. This enables a clearer
prioritization of factors and helps focus objectives
 There is more understanding of the problem and its often interconnected and even contradictory
causes. This is often the first step in finding win-win solutions
 It identifies the constituent issues and arguments, and can help establish who and what the
stakeholders and processes are at each stage.
 It can help establish whether further information, evidence or resources are needed to make a
strong case, or build a convincing solution.
 Present issues - rather than apparent, future or past issues - are dealt with and identified.
 The process of analysis often helps build a shared sense of understanding, purpose and action.
[Link] ANALYSIS
 Involves transforming each problem statement into an objective.
 The objective tree uses exactly the same structure as the problem tree, but with the problem
statements (negatives) are turned into objective statements (positives).
 While the problem tree shows the cause and effect relationship between problems, the objective
tree shows the means - and relationship between objectives.
Developing the Objectives Tree
 Reformulate all the elements in the problem tree into positive desirable conditions.
 Review the resulting means-end relationships to assure the validity and completeness of the
objective tree.
 If required revise statements and delete objectives that appear unrealistic or unnecessary
 Add new objectives where required.
 Draw connecting lines to indicate the means-ends relationships.
Factors that determine an effective Objective Tree
 The statements should be clear and unambiguous.
 The links between each statement should be logical and reasonable i.e. the achievement of one
should help support the attainment of another that is above it in the hierarchy.
 The risks to achieving the objectives and also having sustainable outcomes appear to be
manageable.
 The positive actions at one level should be sufficient to lead to the result above.
 The overall structure should be simple and clear.
4. Strategy Analysis
The different groups of similar Objectives identified in the Objective tree become Strategies. The
most appropriate and feasible strategy is selected on the basis of different criteria (priority, budget,
timing).
 Factors to be considered during this process include:
1. If all of the identified problems and/or objectives need to be tackled, or a selected few.
2. The combination of interventions that are most likely to bring about the desired results
and promote sustainability of benefits
3. The likely capital and recurrent cost implications of different possible interventions and
what can be realistically afforded.
4. The strategy which will best support participation by both women and men
 5. The strategy which will most effectively support institutional strengthening objectives.
6. How can negative environmental impacts be best mitigated.
Steps in Conducting Strategy Analysis
1. Identify differing “means-ends” ladders, as possible alternative options or project components.
2. Eliminate objectives which are obviously not desirable or achievable.
3. Eliminate objectives which are pursued by other projects in the area.
4. Discuss the implications for affected groups.
5. Make an assessment of the feasibility of the different alternatives.
6. Select one of the alternatives as the project strategy.
Formulation phase
During the Formulation phase, relevant project ideas are developed into project plans. The particular
stress should be on feasibility and sustainability/quality of the suggested intervention, and should ensure
that the project has focused adequately on health. Beneficiaries and other stakeholders participate in the
detailed specification of the project idea that is then assessed for its feasibility (whether it is likely to
succeed) and sustainability (whether it is likely to generate long-term benefits.
The expected outcome of the Formulation phase is an assessment establishing whether the proposed
project identified in the pre-feasibility study is relevant, feasible, health-focused and likely to be
sustainable, and detailing the technical, economic and financial, institutional and management,
environmental and socio-cultural and operational aspects of the project
Project Formulation is a concise, exact statement of a project to set the boundaries or limits of work to
be performed by the project. It is a formal document that gives a distinctive identity of the project and
precise meaning of project work to prevent conflict, confusion, or overlap.
For an individual project Formulation will usually involve tasks comparable to those of the
Identification phase. Equally, the project design has to be assessed and improved, and a decision to be
taken as to whether or not to proceed with the preparation of a financing proposal.
The key focus for this phase of the Project Cycle is:
1. To verify the relevance of the proposed project in addressing health needs. This means to check
the validity of the log frame outline as it was developed during the identification phase, and
running in detail through the steps of the Planning Phase.
2 .To assess in detail the feasibility of the proposed project and to prepare/finalize a logical framework
matrix.
[Link] assess in detail the potential sustainability of the project results after project completion, based on
consideration of the quality factors.
4. To prepare an Implementation Schedule, an outline for Activity and Resource Schedules and the
institutional structure for implementation stipulating the responsibilities of various bodies, project
timing/phasing, estimated cost per budget item.
[Link] prepare a draft Financing Proposal
[Link] provide recommendations for the next steps and any further actions necessary to secure project
financing and implementation. Holding a planning meeting towards the end of this phase (and focusing
on final agreement on Overall Objectives, Results, Activities, Indicators, the outline of Activity and
Resource Schedules and implementation arrangements) with selected stakeholders is strongly
recommended. This will help improving ownership by the target groups / beneficiaries. This is
particularly in the context of the sensitive environment with reference to health.
This stage aims to:
 Carefully identify and weigh various components of project work
 Analyze project feasibility and cost-effectiveness
 Examine and approve project inputs and outputs
 Identify stakeholders and their involvement and contribution
 Define benefits and expectations
 Estimate resources needed
 Perform a preliminary analysis of risks
 Make an outline of project schedule
4. FINANCING PHASE
The financing proposal is completed and considered by the appropriate committee; and a decision is
taken whether or not to fund the project. A formal agreement with the donor is then signed by both
including essential financing implementation arrangements.
Major Tasks and Expected Outcomes of Financing
• The major tasks have already been mentioned above. The drafting of the final version of the
Financing Proposal will include specification of accompanying measures to facilitate project
implementation, if not yet done. A format for the Financing Proposal is outlined below. The
expected outcomes of Financing are:
– A final version of the Financing Proposal in the defined format which should cover all
– aspects of the logical framework analysis
A decision taken by the organization:
• To submit the financing proposal to the competent authority,
• To redesign or reject the project.
• A signed financing agreement or memorandum between the relevant parties.

RESOURCE SCHEDULING
Resource scheduling refers to the set of actions and methodology used by organizations to efficiently
assign the resources they have to jobs, tasks or projects they need to complete, and schedule start and
end dates for each task or project based on resource availability
Resource scheduling is a key step of project management.
It is also often used for simple operation management, as it allows project managers to outline
completion dates for tasks assigned to their teams, which they can report to stakeholders.
STEPS IN RESOURCE SCHEDULING
Typical resource scheduling steps
include:
1. Listing tasks or jobs that need to be completed along with an assumption of duration or effort,
which can be expressed in hours, days, or percentage of occupation.
2. Identifying constraints for each job or task: it can be a deadline, a set of skills required to
complete the task, a location where the resources need to be moved for the job, etc.
3. Identifying the types and number of resources needed to complete each task, i.e. the resource
demand. The demand for each type of resource can be then expressed in hours or days for
people, machines, etc. and in quantity if parts and materials are also needed.
4. Controlling the future availability of resources of each category (employees, equipment, rooms
etc).
If the resources are primarily people, this includes knowing how much work they typically do in a
day, what their current and forecasted workload is, if there are any planned absences or time off, new
hires, etc.
The total availability for a period can be expressed in a number of day and hours.
5. Matching available resources with tasks or jobs, i.e. scheduling each resource to perform a
specific task or job at a specific date, until all work is assigned.
Project Financing Criteria
When assessing the quality of the project design before submission of the Financing Proposal to the
competent authority, a further check should be made to ensure that the project is relevant, feasible
and sustainable.
See the table summary below:
Project Financing Criteria
Implementation phase
Project implementation refers to the process of carrying out the project plan by performing the activities
included therein.
 The implementation phase involves the following:
1. Action Planning
2. Monitoring and Review
3. Risk Management
ACTION PLANNING
An action plan describes the way a project will meet its objectives through detailed action steps that
describe how and when these steps will be taken.
It describes the way the project will use its strategies to meet its objectives.
An action plan consists of a number of action steps or changes to be brought about by the project in the
community.
Advantages of an Action Plan
To lend credibility to the project. An action plan shows members of the community (including
sponsors) that your project is well ordered and dedicated to getting things done.
Ensures the project team members do not overlook any of the details.
 To understand what is and isn't possible for the project to do
 For efficiency: to save time, energy, and resources in the long run
 For accountability: To increase the chances that people will do what needs to be done
Steps in Developing an Action plan
1. Determine what people and sectors of the community should be changed and involved in
finding solutions
Most of the health and development issues that community projects deal with are community-wide,
and thus need a community-wide solution.
Some members of the community the project might consider asking to join the action planning group
include:
a) Influential people from all the parts of the community affected by the initiative.
b) People who are directly involved in the problem
c) Members of grassroots organizations
d) Members of the various ethnic and cultural groups in the community
e) People the project knows are interested in the problem or issue
f) Newcomers or young people in the community who are not yet involved
2. Convene a planning group in your community to design your action plan.
- Make the planning committee as diverse and inclusive as possible.
- The group should look like the people most affected by the problem or issue.
- Communicate the project's vision, mission, objectives, strategies, targets and agents of change
and proposed changes for each sector of the community.
3. Develop an action plan composed of action steps that address all proposed changes.
The plan should be complete, clear, and current.
The action steps indicate the activities you must take to carry out your objectives while still fulfilling
your vision and mission
4. Review your completed action plan carefully to check for completeness.
- Make sure that each proposed change will help accomplish the project’s mission.
- Make sure that the action plan taken as a whole will help you complete your mission
 MONITORING AND REVIEW
Monitoring and review is important because information is needed on how well the project objectives
and the action plan is being implemented and whether it is succeeding.
Monitoring and review helps to know:
a) If the activities are being carried out as planned.
b) Whether the effects are as predicted
c) Whether the costs are as predicted
d) If the assumptions on which the plan was based proved to be are correct.
If the project goals are still valid
RISK MANAGEMENT
Risk management is the process of identifying, analyzing and then responding to any risk that arises
over the life cycle of a project to help the project remain on track and meet its goal.
A risk is anything that could potentially impact the project’s timeline, performance or budget.
Risks are potentialities, and in a project management context, if they become realities, they then become
classified as issues that must be addressed.
So risk management, then, is the process of identifying, categorizing, prioritizing and planning for risks
before they become issues.
Risk Management Process
Managing risks on projects is a process that includes risk assessment and a mitigation strategy for
those risks.
Risk assessment includes both the identification of potential risk and the evaluation of the potential
impact of the risk.
A risk mitigation plan is designed to eliminate or minimize the impact of the risk events—occurrences
that have a negative impact on the project.
Risk assessment
Risk Identification
Involves using checklists of potential risks and evaluating the likelihood that those events might happen
on the project.
These checklists can be helpful to the project manager and project team in identifying both specific risks
on the checklist and expanding the thinking of the team.
The past experience of the project team, project experience within the company, and experts in the
industry can be valuable resources for identifying potential risk on a project.
Identify risk by category is another method for exploring potential risk on a project.
Some examples of categories for potential risks include the following:
 Technical, Cost, Schedule, Client, Weather, Financial, Political, Environmental, People.
Risk Evaluation
After the potential risks have been identified, the project team then evaluates the risk based on the
probability that the risk event will occur and the potential loss associated with the event.
Not all risks are equal.
Some risk events are more likely to happen than others, and the cost of a risk event can vary greatly.
Evaluating the risk for probability of occurrence and the severity or the potential loss to the project is the
next step in the risk management process.
Having criteria to determine high impact risks can help narrow the focus on a few critical risks that
require mitigation.
Risk evaluation is about developing an understanding of which potential risks have the greatest
possibility of occurring and can have the greatest negative impact on the project.
These become the critical few.
After the risk has been identified and evaluated, the project team develops a risk mitigation plan, which
is a plan to reduce the impact of an unexpected event.
The project team mitigates risks in the following ways:
1. Risk avoidance
2. Risk sharing
3. Risk reduction
4. Risk transfer
Each of these mitigation techniques can be an effective tool in reducing individual risks and the risk
profile of the project.
The risk mitigation plan captures the risk mitigation approach for each identified risk event and the
actions the project management team will take to reduce or eliminate the risk.
Risk avoidance
Usually involves developing an alternative strategy that has a higher probability of success but
usually at a higher cost associated with accomplishing a project task.
A common risk avoidance technique is to use proven and existing technologies rather than adopt new
techniques, even though the new techniques may show promise of better performance or lower costs.
Risk sharing
Involves partnering with others to share responsibility for the risk activities.
Many organizations that work on international projects will reduce political, legal, labor, and others risk
types associated with international projects by developing a joint venture with a company located in that
country.
Partnering with another company to share the risk associated with a portion of the project is
advantageous when the other company has expertise and experience the project team does not have.
If the risk event does occur, then the partnering company absorbs some or all of the negative impact of
the event. The company will also derive some of the profit or benefit gained by a successful project.
Risk reduction
Is an investment of funds to reduce the risk on a project.
A project manager may hire an expert to review the technical plans or the cost estimate on a project to
increase the confidence in that plan and reduce the project risk.
Assigning highly skilled project personnel to manage the high-risk activities is another risk reduction
method.
Risk transfer
Is a risk reduction method that shifts the risk from the project to another party.
The purchase of insurance on certain items is a risk transfer method.
The risk is transferred from the project to the insurance company.
The purchase of insurance is usually in areas outside the control of the project team.
Weather, political unrest, and labor strikes are examples of events that can significantly impact the
project and that are outside the control of the project team.
Evaluation phase
Types of Evaluations
1. Formative Evaluation
2. Mid-term evaluation
3. Summative evaluation
4. Ex-post evaluation
5. Meta-evaluation
Formative Evaluation
This type of evaluation, also referred to as a baseline survey is carried out before an actual project is
implemented.
The formative evaluation is conducted mainly to review the existing status in the targeted population,
which in turn informs project focus.
The formative evaluation is an important type of evaluation as it is not only the starting point of a
project, but also forms the basis for evaluation.
Additionally, the tools and methodologies that are used at the formative evaluation are usually the ones
that are carried on to other stages of evaluation such as the mid-term and summative evaluation.
Mid-term Evaluation
The mid-term reviews are conducted mid-project.
The mid-term reviews are important for the purposes of establishing whether a project is heading
towards the set goals and objectives, thereafter informing management and control decisions by the
project management
It is important in building organizational confidence in the project implementation strategies, or in the
case where indicators are not pointing towards success, acting as a call to the change of implementation
strategies.
Summative evaluation
This evaluation type is also known as the end-term evaluation or the project completion evaluation.
It is intended to be carried out immediately at project conclusion.
Summative evaluation is carried out to establish project outputs and immediate outcomes, with results of
the evaluation compared to the results at baseline.
This evaluation generally informs stakeholders on the project success and is important for documenting
success stories and lessons learnt.
This evaluation is also usually carried out by the project team.
Ex-post evaluation
This type of evaluation is also called the post- implementation evaluation.
Ex-post evaluation is more intense than summative evaluation and is conducted by external evaluators
for the purposes of independent assessment and takes much longer time duration before being conducted
after project completion.
This is not only because external evaluators need to be outsourced, but also because it is intended to
capture the impacts of the project.
It is usually the final evaluation associated with a project.
Meta-evaluation
Meta-evaluation is a type of evaluation that is based on several different sources of information.
Organizations may hire several evaluation teams in order to conduct a meta-evaluation, while in other
cases, different evaluations conducted by different institutions on similar initiatives can be considered
for meta-evaluation.
Steps in Conducting an Evaluation
1. Engage stakeholders to ensure that all partners invested in what will be learned from the
evaluation become engaged early in the evaluation process
2. Describe the program to clearly identify its goals and objectives. This description should include
the program’s needs, expected outcomes, activities, resources, stage of development, context,
and logic model
3. Design the evaluation design to be useful, feasible, ethical, and accurate.
4. Gather credible evidence that strengthens the results of the evaluation and its recommendations
Sources of evidence could include people, documents, and observations
5. Justify conclusions that are linked to the results and judged against standards or values of the
stakeholders
6. Deliberately ensure use of the evaluation and share lessons learned from it.
Tools used for Evaluation
Once evaluation questions have been formulated and indicators specified, it is possible to specify the
way in which data will be collected for the evaluation.
Methods must be specified for each evaluation question.
These methods can be quantitative or qualitative.
Quantitative methods
Questionnaires and surveys
  Closed or open-ended questions can be used to ask opinions of participants or target groups in a
systematic way.
 Questionnaires can be mailed out, sent by email or posted on the web
2. Records
Records of project activities contain important information about the way the participants react to the
project content.
Analyzing these records facilitates the identification of trends and patterns
Qualitative methods
1. Interviews
Structured, semi-structured, or unstructured interviews in person or by phone are useful to explore
opinions and issues in depth on a one-to-one basis.
2. Focus groups
Group sessions with small groups of people allow exploration of different views on an issue, or
clarify issues to complement other data collection methods.
Observation
Observing specific components of the project can be a powerful way to learn about the participants’
responses and uptake of the project.

Expert opinions
The opinion of experts on specific components of the project can yield objective information on whether
the project meets quality criteria.
Project appraisal
After appraising, the possible the projects, a none-viable project may remain, these projects are ranked
so as to choose the ones to be implemented cost. This is due to scarcity of resources for project
implementation. At this stage further analysis of the project is covered out. Where a critical a view is
done by a team of independent expects who are not involved in feasibility bodies done earliest. This
provides an opportunity to reexamine every aspect of the project before funds raising committed.
Development budgeting may be undertaken
Project appraisal means the assessment of a project.
Project appraisal is made for both proposed and executed projects.
Project appraisal is a cost and benefits analysis of different aspects of proposed project with an objective
to adjudge its viability.
Project appraisal is the process of assessing and questioning proposals before resources are committed.
It is an essential tool for effective action in community renewal. It’s a means by which partnerships can
choose the best projects to help them achieve what they want for their community.
But appraisal has been a source of confusion and difficulty for projects in the past. Audits of the
operation of Single Project Budget schemes have highlighted concerns about the design and operation of
project appraisal systems, including:

 Mechanistic, inflexible systems

 A lack of independence and objectivity
 A lack of clear definition of the stages of appraisal and of responsibility for these stages
 A lack of documentary evidence after carrying out the appraisal
It’s no surprise that audits or inspections aren’t impressed with the quality of appraisals, and are
specifically found with problems like;

 Individual appraisals which do not cover the necessary information or provide only a superficial
analysis of the project
 Particular problems in dealing with risks, options and value for money
 Appraisals which are considered too onerous/burdensome for smaller projects
 Rushed appraisals
Project appraisal is a requirement before funding of programs is done. But tackling problems like those
outlined above is about more than getting the systems right on paper. Experience in projects emphasizes
the importance of developing an ‘appraisal culture’ which involves developing the right system for local
circumstances and ensuring that everyone involved recognizes the value of project appraisal and has the
knowledge and skills necessary to play their part in it.

What can Project Appraisal Deliver?

Project appraisal helps project initiators and designers to;

 Be consistent and objective in choosing projects

 Make sure their program benefits all sections of the community, including those from ethnic groups
who have been left out in the past
 Provide documentation to meet financial and audit requirements and to explain decisions to local
people.

Appraisal justifies spending money on a project.

Appraisal asks fundamental questions about whether funding is required and whether a project offers
good value for money. It can give confidence that public money is being put to good use, and help
identify other funding to support a project. Getting it right may help a community make its resources go
further in meeting local need

Appraisal is an important decision making tool.

Appraisal involves the comprehensive analysis of a wide range of data, judgments and assumptions, all
of which need adequate evidence. This helps ensure that projects selected for funding:
 Will help a partnership achieve its objectives for its area
 Are deliverable
 Involve local people and take proper account of the needs of people from ethnic minorities and other
minority groups
 Are sustainable
 Have sensible ways of managing risk.
Appraisal lays the foundations for delivery.
Appraisal helps ensure that projects will be properly managed, by ensuring appropriate financial and
monitoring systems are in place, that there are contingency plans to deal with risks and setting
milestones against which progress can be judged.

Getting the system right

The process of project development, appraisal and delivery is complex and partnerships need systems,
which suit local circumstances and organization. Good appraisal systems should ensure that:

 Project application, appraisal and approval functions are separate

All the necessary information is gathered for appraisal, often as part of project development in which
projects will need support
 Race/tribal equality and other equality issues are given proper consideration

 Those involved in appraisal have appropriate information and training and make appropriate use of
technical and other expertise
 There are realistic allowances for time involved in project development and appraisal
 Decisions are within a implementers’ powers
 There are appropriate arrangements for very small projects
 There are appropriate arrangements for dealing with novel, contentious or particularly risky projects.

Appraising a project

Key issues in appraising projects include the following.

Need, targeting and objectives
The starting point for appraisal: applicants should provide a detailed description of the project,
identifying the local need it aims to meet. Appraisal helps show if the project is the right response, and
highlight what the project is supposed to do and for whom.

Context and connections

Appraisal should help show that a project is consistent with the objectives of the relevant funding
program and with the aims of the local partnership. Are there links between the project and other local
programs and projects – does it add something, or compete?

Consultation
Local consultation may help determine priorities and secure community consent and ownership. More
targeted consultation, with potential project users, may help ensure that project plans are viable. A key
question in appraisal will be whether there has been appropriate consultation and how it has shaped the
project
Options
Options analysis is concerned with establishing whether there are different ways of achieving objectives.
This is a particularly complex part of project appraisal, and one where guidance varies. It is vital though
to review different ways of meeting local need and key objectives.

Inputs
It’s important to ensure that all the necessary people and resources are in place to deliver the project.
This may mean thinking about funding from various sources and other inputs, such as volunteer help or
premises. Appraisal should include the examination of appropriately detailed budgets.

Outputs and outcomes

Detailed consideration must be given in appraisal to what a project does and achieves: its outputs and
more importantly its longer-term outcomes. Benefits to neighborhoods and their residents are reflected
in the improved quality of life outcomes (jobs, better housing, safety, health and so on), and appraisals
consider if these are realistic. But projects also produce outputs, and we need a more realistic view of
output forecasts than in the past.

Value for money

This is one of the key criteria against which projects are appraised. A major concern for government, it
is also important for local partnerships and it may be necessary to take local factors, which may affect
costs, into account.

Implementation
Appraisal will need to scrutinize the practical plans for delivering the project, asking whether staffing
will be adequate, the timetable for the work is a realistic one and if the organization delivering the
project seems capable of doing so.

Risk and uncertainty

You can’t avoid risk – but you need to make sure you identify risk (is there a risk and if so what is it?),
estimate the scale of risk (if there is a risk, is it a big one?) and evaluate the risk (how much does the risk
matter to the project.) There should also be contingency plans in place to minimize the risk of project
failure or of a major gap between what’s promised and what’s delivered.

Forward strategies
The appraisal of forward strategies can be particularly difficult, given inevitable uncertainties about how
projects will develop. But is never too soon to start thinking about whether a project should have a fixed
life span or, if it is to continue beyond a period of regeneration funding, what support it will need to do
so. This is often thought about in terms of other funding but, with an increasing emphasis on
mainstream services in neighborhood renewal, appraisal should also consider mainstream links and
implications from the first.
Sustainability
In regeneration, sustainability has often been talked about simply in terms of whether a project can be
sustained once regeneration funding stops but sustainability has a wider meaning and, under this
heading, appraisal should include an assessment of a project’s environmental, social and economic
impact, its positive and negative effects.
While appraisal will focus detailed attention on each of these areas, none of them can be considered in
isolation. Some of them must be clearly linked – for example, a realistic assessment of outputs may be
essential to a calculation of value for money. No project will score highly against all these tests and
considerations. The final judgment must depend on a balanced consideration of all these important
factors.

Checklist for project appraisal

Whether you are involved in a partnership with an appraisal system in place, or starting to design one
from scratch, these questions are worth asking.

 Are appraisals systematic and disciplined with a clear sequence of activities and operating rules?
 Is there an independent assessment of the project by someone who has not been involved with the
development of the project?
 Does the appraisal process culminate in clear recommendations that inform approval (or rejection) of
the project?
 Is the approval stage clearly separate?
 Is the appraisal process well documented, with key documents signed, showing ownership and
agreement, and allowing the appraisal documentation to act as a basis for future management,
monitoring and evaluation?
 Does the appraisal system comply with any relevant government guidance
 Are the right people involved at various stages of the process and, if necessary, how can you widen
involvement?
Relevance.
These are key functions in the planning and allocation stages of public investments. Effective appraisal
supports decision making for optimization of project design and impact and is critical in selecting
projects that yield the highest social and economic returns.
Feasibility
A feasibility study is used to determine the viability of an idea. The objective of such a study is
to ensure a project is legally and technically feasible and economically justifiable. It tells us
whether a project is worth the investment. The feasibility study provides an investigating
function. As the name implies, a feasibility study is an analysis of the viability of an idea. The
feasibility study focuses on helping answer the essential question of “should we proceed with the
proposed project idea?” All activities of the study are directed toward helping answer this
question.

Feasibility studies can be used in many ways but primarily focus on proposed project. Project
owners with ideas should conduct a feasibility study to determine the viability of their idea
before proceeding with the development of the project. Determining early that a project idea will
not work saves time, money and heartache late

Reasons to Do a Feasibility Study

Conducting a feasibility study is a good practice. If you examine successful projects, you will
find that they did not go into a new project without first thoroughly examining all of the issues
and assessing the probability of project success.

Below are other reasons to conduct a feasibility study.

 Gives focus to the project and outline alternatives.

 Narrows project alternatives
 Identifies new opportunities through the investigative process.
 Identifies reasons not to proceed.
 Enhances the probability of success by addressing and mitigating factors early on that
could affect the project.
 Provides quality information for decision making.
 Provides documentation that the project was thoroughly investigated.
 Helps in securing funding from lending institutions and other monetary sources.
 Helps to attract equity investment.
The feasibility study is a critical step in the project assessment process. If properly conducted, it
may be the best investment you ever made.

Sustainability

In order to assess the sustainability of a project, one should try to determine if various conditions
that can assure the continuation of the benefits of the project are satisfied. Examples of such
conditions are:

Identification: Do the community members have a clear view on which results they would
like to be implemented in a permanent way?
Commitment: Are the local stakeholders sufficiently involved in the project? Are the local
 (academic) authorities supporting the project? Is the project embedded in a larger research
initiative: national/regional/international?
Financial: Will there be sufficient money available after the project to continue with its
application? Is the necessary infrastructure available and are there provisions for the
maintenance of these facilities?

Visibility: Which measures are foreseen to communicate the results of the project to the local
community? Will there be an effort to transfer the necessary knowledge and skills.

Tools/Methods/Techniques of Project Appraisal

1. Economic analysis
2. Financial analysis
3. Market analysis
4. Technical analysis
5. Managerial competence
6. Ecological analysis
Economic Analysis

Under economic analysis the aspects highlighted include

◦ Requirements for materials

◦ Level of capacity utilization

◦ Anticipated expenses

◦ Proposed profits

◦ Estimated demand

Financial Analysis

In order to adjudge the financial viability of the project, the following aspects need to be carefully
analyzed :

◦ Cost of capital

◦ Means of finance

◦ Estimates of sales and production

 ◦ Cost of production

◦ Working capital requirement and its financing

Market Analysis

Before the production actually starts, the project manager needs to anticipate the possible market
for the product.

He has to anticipate who will be the possible customer for his product and where his product will
be sold.

Technical Analysis

Technical analysis implies the adequacy of the proposed equipment to prescribed norms.

It should be ensured whether the required know how is available with the project

Ecological Analysis

In recent years, environmental concerns have assumed great deal of significance.

Ecological analysis should also be done particularly for major projects which have significant
implication

The key factors considered for ecological analysis are: ¾ Environmental damage ¾ Restoration
measure
Introduction to grant proposal writing

Topic Objectives
By the end of the training session the trainee should be able to:

a) Define a Project Proposal

b) Describe the format of a Project Proposal
c) Write winning project proposal
A proposal is a request for financial assistance to implement a project. The proposal outlines the
plan of the implementing organization about the project, giving extensive information about the
intention, for implementing it, the ways to manage it and the results to be delivered from it
(Funds for NGOs, 2010).The following guidelines are designed to help you prepare your full
proposal. How well you plan the action is critical to the success of the project.

A project proposal is a detailed description of a series of activities aimed at solving a certain

problem In order to be successful, the document should:

provide a logical presentation of a research idea

illustrate the significance of the idea
show the idea's relationship to past actions
articulate the activities for the proposed project
Designing a project is a process consisting of two elements, which are equally important and thus
essential to forming a solid project proposal:

project planning (formulation of project elements)

proposal writing (converting the plan into a project document)
The project proposal should be a detailed and directed manifestation of the project
design. It is a means of presenting the project to the outside world in a format that is
immediately recognized and accepted.

Proposed Format for a Full Project Proposal

A full proposal should have the following parts:

Title page
Project title
Abstract
Context/executive summary –describing the social, economic, political and cultural
 background
Project justification -rationale, problem statement, priority needs, proposed approach
which includes type of intervention, implementing organization and project aims
Target group and how they will benefit
Project implementation –describe activities and resource allocation
Budget –be itemized (income and expense
Monitoring and evaluation-basis for monitoring and setting indicators to monitor
Reporting –schedule of project reports and financial report
Management and personnel: A brief description should be given of the project personnel,
the individual roles each one has assumed, and the communication mechanisms that exist
between them. All the additional information (such as CVs) should be attached to the
annexes.

Tips to Write a Successful Proposal

Plan ahead-Allow plenty of time for those involved to meet, discuss, and review progress
in the grant writing process. Also, allow enough time to get the required signatures and
to get the proposal to the funder.

Be aware of donor priorities- Carefully match your project with an appropriate funding
source. The primary difference between successful grant writing and inefficient
proposal Submission is the amount of time invested in the strategic identification of
appropriate funders.

Use action words- when writing your proposal, such as achieve, engage, begin, compare,
evaluate, exhibit, offer, lead, involve, organize, prepare, research, restore, reveal,
support, demonstrate, define, implement, instruct, produce, validate, verify, test,
recognize, use, etc.

Be realistic in what you are proposing. What can reasonably be accomplished in the
scope time and resources of this grant?

Be a learning organization. Learn from your own and others experiences with the same
donor! Read the reviews of other proposals that have been submitted to the same donor
if is possible.
 Be factual and specific. Don't talk in generalities or in emotional terms. Be sure to
substantiate all statements in your proposal, otherwise don't make them.

Limit technical and organizational jargon. Use language anyone will understand — no
abbreviations, initials, or jargon. Don't assume the reader will understand your acronyms
or abbreviations, and also make sure to include an acronyms page.
Advantages
A proposal is an essential marketing document that helps cultivate an initial professional
relationship between an organization and a donor over a project to be implemented
A proposal facilitates appropriate words for the conception of an idea
The proposal has a framework that establishes ideas formally for a clear understanding of
the project for the donor
Successful proposals mean financial aid for the organization to grow for the replication of
project and idea
Disadvantages

Planning problems: Although a good idea exists, yet when we try to plan it out
extensively, we face many unexpected challenges
There are often tight deadlines, and proposals may be rejected
Proposals are prepared to apply for external funds for the implementation of a project. Most
grant applications ask for the same information, but they often have different formats. Some will
have a list of questions.

Assignment:
Identify one felt need in your community and write a project proposal to a donor.
Logical frame work
Present a standardized summary of the project and its logic.
Purposes:
 Summarizes what the project intends to do and how
 Summarizes key assumptions
 Summarizes outputs and outcomes that will be monitored
and evaluated
Logical frame work

Project Inputs

Project Input refers to all physical and non-physical assets that are used as the basis for adding
value to a given project and contributing to achieving project goals and objectives. It may take a
variety of forms, from energy, process, technology and the like to requirements, guidelines,
capital, etc. Project input is transformed into certain output throughout the project life-cycle.
Managing project input means identifying, estimating and using physical and non-physical assets
in the project in order to ensure that these assets are sufficient for making necessary changes
within the project environment. Actually, the process of making change to a project can be
characterized by 4 variables:

 Input
 Resources
 Output
 Enablers

Project change is made when enablers (people, equipment, machines) transform input into
desired output (product, service, some other results) through consuming available resources
(money, time, technology). Project management appears to be a mechanism of managing these
variables in order to ensure balanced use of resources and smooth transformation of inputs into
outputs.

Inputs are very often confused to be synonymous with activities. However, these terms are not
interchangeable. Inputs, in simple terms, are those things that we use in the project to implement
it. For example, in any project, inputs would include things like human resource (personnel),
 finances in the form of money, machinery such a vehicles, and equipment such as public address
systems among others. Inputs ensure that it is possible to deliver the intended results of a project.

Activities
Activities on the other hand are actions associated with delivering project goals. In other words,
they are what the personnel/employees do in order to achieve the aims of the project. In a HIV
and AIDS project, for example, activities would include things such as conducting community
meetings to sensitize the public on prevention measures, installing condom dispensers at hot-
spots, collecting periodic data to monitor project progress among others.

Outputs
These are the first level of results associated with a project. Often confused with “activities”,
outputs are the direct immediate term results associated with a project. In other words, they are
usually what the project has achieved in the short term. An easy way to think about outputs is to
quantify the project activities that have a direct link on the project goal. For example, project
outputs in a HIV and AIDS project would be: the number of community awareness meetings that
were done, the number of condom dispensers installed, number of HIV and AIDS infected
persons referred for ARTs among others.

Outcome:

This is the second level of results associated with a project and refers to the medium term
consequences of the project. Outcomes usually relate to the project goal or aim. For example, in
a safe water project, an outcome would be “the percentage of households that are using
chlorinated drinking water”. Another outcome could be “the percentage of children suffering
from diarrhea.” Nevertheless, an important point to note is that, outcomes should clearly link to
project goals.
Impact:
It is the third level of project results, and is the long term consequence of a project. Most
often than not, it is very difficult to ascertain the exclusive impact of a project since
several other projects, not similar in nature can lead to the same impact. An example of
an impact would be reduced poverty rates, reduced child mortality rates among others. In
the case of the Safe Water project, an increase in the number of households using treated
water would directly impact on fewer cases of people suffering from diarrhea, meaning
that there will be a reduced number of lost man-hours. This has a direct impact on
poverty reduction. Also, the number of children suffering from diarrhea may reduce,
meaning that the cases of child deaths are reduced.

Logical matrix

Project Description Performance Indicators Means of Verification Assumptions

Goal: The broader Measures of the extent to Sources of information

development impact to which a sustainable and methods used to
which the project contribution to the goal collect and report it.
contributes - at a national has been made. Used
and sectoral level. during evaluation.

Purpose: The Conditions at the end of Sources of information Assumptions

development outcome the project indicating that and methods used to concerning the
expected at the end of the the Purpose has been collect and report it. purpose/goal
project. All components achieved and that benefits linkage.
will contribute to this are sustainable. Used for
project completion and
evaluation.

Component Objectives: Measures of the extent to Sources of information Assumptions

The expected outcome of which component and methods used to concerning the
producing each objectives have been collect and report it. component
component's outputs. achieved and lead to objective/purpose
sustainable benefits. Used linkage.
during review and
evaluation.
Outputs: The direct Measures of the quantity Sources of information Assumptions
measurable results (goods and quality of outputs and methods used to concerning the
and services) of the and the timing of their collect and report it. output/component
project which are largely delivery. Used during objective linkage.
under project monitoring and review.
management's control

Activities: The tasks Implementation/work Sources of information Assumptions

carried out to implement program targets. Used and methods used to concerning the
the project and deliver the during monitoring. collect and report it. activity/output
identified outputs. linkage.

Business Plan
Definition: a business plan is a document that convincingly demonstrate that your business idea
can sell enough of its products and services so as to make products and services so as to make
satisfactory profit and attractable to potential financiers.
In other words a business plan in a road map you can follow to start and manage a successful
business. It shows step by step on how to start, fund, manage, monitor, and evaluate a successful
business.
Business Plan as a Tool
1. Objective and goal creating tool
2. management tool
3. training tool
4. promotion tool
5. fund raising tool/capital
6. staffing tool
7. monitoring and evaluating tool
8. business creation tool
9. weakness/ omissions identifying tool
10. measuring performance
11. for motivation

Why Prepare a Business Plan

1. To avoid silly mistakes
2. It defines and focus business objectives and goals
3. As a tool for fundraising, marketing, monitoring, evaluation, staffing
4. To be realistic on our intentions
5. To clearly communicate your vision/ ideas to other within and outside.

Who should writes a Business Plan?

1. should be written by entrepreneur since he/ she is the owner of the business idea and is the
custodian of the vision
 2. Can be written by consultants and employees.

What is a “good” Plan?

1. a good plan should be dynamic document which should be available for reference for
decision making evaluation and future plans
2. It should clearly communicate visions and ideas
3. Should show the evidence of understanding of target customers
4. Appealing to the potential financier.

Benefits
1. It forces would be entrepreneur to establish written goals and objectives for their proposed
businesses.
2. It enables potential entrepreneur to assess the viability of their business opportunity on paper
3. it assist in identifying the potential customers, marketing opportunities, pricing strategy,
promotional activities, distribution strategy and a competitive conditions needed for business
success.
4. It identifies the number of employees needed, the skills they should possess, the task they will
perform and the methods of remuneration to be adopted.
5. It establishes the financial needs of a business and suggests the possible sources of financing
6. It helps to identify critical factors for successful entry and growth of a businesses in a given
market place.

Components of a business plan

Business plans include details under the following main sections;
1. Executive summary
2. Business description
3. Marketing plan
4. Competitor analysis
5. Management plan
6. Business operation (production/ service, delivery plan)
7. Financial plan
8 Appendices
Executive Summary
N/B. This should be done last
It includes the;
1. type of venture
2. Products/ service to be offered ‘
3. How unique
4. It there a major opportunity for products/ services
5. The business status/ stage
6. legal form of business
7. Location of business
8. Target market
9. % share of market
10. Competitor strength and weakness
11. Strategy of entering the market
12. Managing staff and their qualifications and experiences
13. Time frame for accomplishing your goals.
14. How much money needed for starting and running the business

15. Type of financing you are seeking

a. loan
b. grant
16. The strength of the business that will make it succeed
17. Future plans of the business

Business Description
For a new startup business it will include
1. Objectives, vision, mission statement and goals
2. Specific objectives (SMART)
a. service objective (qualify of service)
b. Profit objective (actual % and amount targeted)
c. Growth objective
d. Social objectives (corporate responsibility)
3. type/form of business venture
4. Date of commencement
5. Physical location
6. Advantages of the location
7. Postal address, physical address/ street/buildings/ road
8. Telephone contact/ email/ fax/website
9. Brief history of the business (company)
10. Experiences of the owners

Marketing Plan
1. description of the target market ( customer segment)
2. Description of products/ services
3. Prices of products/ services
4. Distribution of products /services
5. Promotion of productions/ services

Competitor Analysis
1. internal analysis both strength and weakness
2. External analysis (opportunities and threats)
3. environmental analysis ( political, social, economic, regulatory factors that can impact on
your business)

Management and Organization

1. key management staff
a. Their positions/ designations and responsibilities
b. Qualification and experience
 2. other staff
a. their positions/ designation and responsibilities
b. qualification and experience
c. Their number.

3. Human resources practices

a. Staff recruitment
b. Motivation ‘
c. Training and development
d. Reward and recognition
e. Staff appraisal

Business Operation
1. Product/service development design and facilities.
2. Description of premises
3. Ownership status
4. Renovations/ facelifts/medications
5. Products and services to be offered
6. Machinery, tools, equipment and other facilities required
7. Implementation
a. procurement
b. repair and maintenance
c. repair and maintenance
d. future expansions
8. legal requirements: business name, tax compliance, labour laws, by-laws e.t.c
9. Monthly overhead expenses
10. Professional and support services

Financial Plan
1. Pre-operational costs ( costs before start-up
2. Working capital
3. Projected monthly cash flow statement
4. Projected annual cash flow statement
5. Projected profoma income statement
6. Projected balance sheet

Appendix
1. Brochures and advertisement materials
2. Maps and photos of location
3. Copies of lease and contracts
4. Company certificates of registration
5. List of assets available as collateral for a loan
6. Copies of licenses
7. Research and marketing results
8. Any other materials needed to support your business plan
9. List of equipment owned or to be purchased
How do Potential Lenders and Investors Evaluate the Plan

personnel, the product or service and the available resources.

lan before signing a contract together with
customers who may want to see the business plan before buying the product or service and the
available resources

customers who may want to see the business plan before buying the products pay more attention
to the
i) Experience of the entrepreneur
ii) Market projections

together with the interest within a designated period of time.

risks associated with a business

i. Cash flow
ii. Collateral
iii. Character
iv. Contribution of equity

The business plan must therefore reflect the entrepreneurs credit history, the ability of the
entrepreneur to meet the debt and the interest payable (cash flow) the collateral or tangible assets
being secured for the loan and the amount of personal equity the entrepreneur has invested in the
business.
-Investors on the other hand place more emphasis on the entrepreneur’s character then lenders.
-Investors want to make sure that the entrepreneur is complaint and willing to accept this
involvement.
-They also demand a high rate of returns and will therefore focus on the market and financial
projections

external sources and not merely provide their own perspective.

Presenting the Business Plan

audience of potential investors – in this case the entrepreneur is expected to provide a

short presentation of the business plan.
o sell their business concept in this short period – try and
persuade potential investors that his is a good investment
– an overview of the
marketing program.
reflect the recognized risks and how the entrepreneur plans to
address them.
–written presentation requires the entrepreneur to consult where
necessary the services of lawyers accountants, marketing consults and engineers in preparation
of the business plan.

Information Needs

do quick feasibility study of the business concept to see whether there are possible
barriers to success.

i. marketing
ii. Goals and objectives
iii. Finance
iv. Production

Goals and Objectives

Before beginning the feasibility study the entrepreneur should clearly define the goals and
objectives and also provide frame work for the business plan, marketing plan and
financial plan.
Goals and objects that are too general or that are not feasible make the business plan difficult to
control and implement.

Market Information Needs

 One of the initial and important elements of information needed by the entrepreneur is the
market potential for the product or service
 In order to ascertain the size of the market it is important for the entrepreneur to define
the market e.g. the consumer group men, women, youths [Link].
 The consumers income – high or low- are they rural or urban deadlier.
 The education level is another important aspect of consideration
 A well-defined target market will make it easier to project the market size and subsequent
market goals.
 In order to build a strong marketing plan with reasonable and measurable market goals
and objectives the entrepreneur will need to gather information on the industry and
market.
  Most entrepreneurs have difficulty with this stage and do not of tern known where to
begin. The best way to start is to first visualize the following process of gathering market
information.

ery broad –based data and information and work down until
we develop a positioning strategy and quantifiable goals and objectives.
– this would include
household income trends.
o Population shifts
o Food consumption habits and trends
o Travel trends and
o Employment trends
- here the points of
interest would be;
o Total food sales
o The commercial restaurant sales etc.

competitive environment by analyzing each

competitors strengths and weaknesses.

he/she would offer, the actual market positioning in the competitive environment and the market
objectives – in order to form the marketing plan.

Writing of a Business Plan

The time of writing a business plan depends on the experience and knowledge of the writer
(entrepreneur) as well as the purpose it intends to serve.
It should be comprehensive enough to give any potential investor a complete picture and
understanding of the new venture

The following is a simple outline of a business plan.

Outline of a business plan

i) Introducing page;
Name and address of the business
 Names and addresses of the principal owners
 The nature of the business
 Statement of financing needs
 Statement of confidentiality of the report
II) EXECUTIVE SUMMARY

iii) Description of the venture (business )

a. The product/services offered

b. The size of the business
c. The background of the entrepreneurs
 iv) the production plan

a. the manufacturing process

b. the physical plant and machinery
c. the suppliers
v) the marketing plan
a. the pricing
b. the distribution
c. the promoters

vi) competitors analysis

vii) Management plan
viii) Financial plan
ix) Appendices

Introductory page
This is the title of cover page that provides a brief summary of the business plan’s content.
The introductory page should contain the following
 The name and address
 The names of entrepreneurs ( Tel, Fax , Email , Box e.t.c)
 A description of the company and the business nature
 The amount of finance needed
 A statement of the confidentiality of the report.

Executive Summary
epared after the total plan is written – normally to
maximum of two pages.

lightly
The executive summary should be concise and convincing, addressing issues such as
 The business concept or model
 The unique aspects of concept
 The individual starting the business
 How the money will be made and how much
Any supportive evidence that may give it strength are included
The section is only meant to highlight factors and provide a strong motivation to the person
reading the plan.

Description of the Business

 The description of the venture should be detailed so as to enable the investor to ascertain
the size and scope of the business
 This sect ion should begin with the mission statement and vision of the business venture
  The statement basically describes the nature of the business and what the entrepreneur
hopes to accomplish

The definition will guide the firm through long –term decision making

After the mission statement a number of important factors that provide a clear description and
understanding of the business venture should be discussed.
Key elements are the
 Products or services
 The location and size of the business
 The history of the venture.
Production Plan
 The plan should describe the complete product. If some or all of manufacturing process
is to be subcontracted
 The plan should describe the sub-contractors, including location, reasons for selection,
costs and any contracts competed.
 Others include – manufacturing operations and layout the raw materials the suppliers,
costs capital equipment etc.

Operation Plan
 This section goes beyond the manufacturing process and describes the flow of goods and
services from production to the customer
 It includes storage, shipping, control procedures, customer support services
 Others include renovations, product service, machinery and tools et.c

Marketing Plan
 The marketing plan- is an important part of the business plan since it describes how the
product or service will be distributed, priced and promoted.
 Marketing plan – is an important part of the business plan since it describes how the
product or service will be distributed, priced and promoted
 Marketing research evidence to support any critical marketing decisions as well as
forecasting sales should be described in this section.

Organization Plan

 The organizational plan in part of the business plan that describes the ventures form of
ownership
 That is, proprietorship, partnership or corporation
 The details the shares of stock authorized, share options as well as names and resume of
directors
 It details the organizational structure.

Financial Plan
Is an important part of business plan since it determines the potential investment commitment
needed for the new business venture and indicate its economic feasibility