<br />
IFU'S BEST PRACTICE ON BUSINESS PLANS<br />
A HANDBOOK FOR OUR PARTNERS<br />
IFU as a partner<br />
IFU – Investment Fund for Developing Countries is a development finance institution offering advice<br />
and risk capital to companies wishing to do business in developing countries and emerging markets.<br />
The purpose is to contribute to the economic and social development in the host countries.<br />
IFU invests risk capital on market terms in the form of share capital, loans and guarantees in private<br />
sector companies that are established in developing countries or emerging markets. We provide<br />
professional advice regarding the business environment, investment terms and sustainability issues<br />
as well as cultural and political barriers, etc. with assistance from our regional offices and through<br />
our global network of advisers.<br />
IFU as a fund manager<br />
As a fund manager, IFU has invested in nearly 1,200 project companies in developing<a title="IFU's best practice on business plans page 1" href="http://viewer.zmags.com/publication/9022bdee?page=1"> IFU'S BEST PRACTICE ON BUSINESS PLANS A HANDBOOK </a>
<a title="IFU's best practice on business plans page 2" href="http://viewer.zmags.com/publication/9022bdee?page=2"> IFU as a partner IFU – Investment Fund for Develo</a>
<a title="IFU's best practice on business plans page 3" href="http://viewer.zmags.com/publication/9022bdee?page=3"> PREFACE Business planning is the foundation for b</a>
<a title="IFU's best practice on business plans page 4" href="http://viewer.zmags.com/publication/9022bdee?page=4"> 2 | IFU'S BEST PRACTICE ON BUSINESS PLANS</a>
<a title="IFU's best practice on business plans page 5" href="http://viewer.zmags.com/publication/9022bdee?page=5"> CONTENTS 1 How to use this handbook </a>
<a title="IFU's best practice on business plans page 6" href="http://viewer.zmags.com/publication/9022bdee?page=6"> </a>
<a title="IFU's best practice on business plans page 7" href="http://viewer.zmags.com/publication/9022bdee?page=7"> 1 How to use this handbook This handbook </a>
<a title="IFU's best practice on business plans page 8" href="http://viewer.zmags.com/publication/9022bdee?page=8"> </a>
<a title="IFU's best practice on business plans page 9" href="http://viewer.zmags.com/publication/9022bdee?page=9"> 2 Writing a business plan 2.1 Executive s</a>
<a title="IFU's best practice on business plans page 10" href="http://viewer.zmags.com/publication/9022bdee?page=10"> 2.2 Company presentation Well begun is half done</a>
<a title="IFU's best practice on business plans page 11" href="http://viewer.zmags.com/publication/9022bdee?page=11"> plan includes an overview of the financial perform</a>
<a title="IFU's best practice on business plans page 12" href="http://viewer.zmags.com/publication/9022bdee?page=12"> 2.3 Business case A convincing business idea is </a>
<a title="IFU's best practice on business plans page 13" href="http://viewer.zmags.com/publication/9022bdee?page=13"> potential or a favourable regulatory environment?</a>
<a title="IFU's best practice on business plans page 14" href="http://viewer.zmags.com/publication/9022bdee?page=14"> 2.4 Market, industry and competition The primary</a>
<a title="IFU's best practice on business plans page 15" href="http://viewer.zmags.com/publication/9022bdee?page=15"> Example: Total market size </a>
<a title="IFU's best practice on business plans page 16" href="http://viewer.zmags.com/publication/9022bdee?page=16"> In general, there are a number of entry barriers </a>
<a title="IFU's best practice on business plans page 17" href="http://viewer.zmags.com/publication/9022bdee?page=17"> Sales forecast After having systematically analys</a>
<a title="IFU's best practice on business plans page 18" href="http://viewer.zmags.com/publication/9022bdee?page=18"> 2.5 Organisation and management In IFU's experie</a>
<a title="IFU's best practice on business plans page 19" href="http://viewer.zmags.com/publication/9022bdee?page=19"> it may be money well spent to take external consu</a>
<a title="IFU's best practice on business plans page 20" href="http://viewer.zmags.com/publication/9022bdee?page=20"> Managers with equity shares Be very careful about</a>
<a title="IFU's best practice on business plans page 21" href="http://viewer.zmags.com/publication/9022bdee?page=21"> 2.6 Corporate Governance The term “corporate gov</a>
<a title="IFU's best practice on business plans page 22" href="http://viewer.zmags.com/publication/9022bdee?page=22"> from the beginning also ensures that proper repor</a>
<a title="IFU's best practice on business plans page 23" href="http://viewer.zmags.com/publication/9022bdee?page=23"> 2.7 Sustainability Sustainability is about manag</a>
<a title="IFU's best practice on business plans page 24" href="http://viewer.zmags.com/publication/9022bdee?page=24"> as underage work and corruption. If a sustainabil</a>
<a title="IFU's best practice on business plans page 25" href="http://viewer.zmags.com/publication/9022bdee?page=25"> are prohibited by law in most countries. These ar</a>
<a title="IFU's best practice on business plans page 26" href="http://viewer.zmags.com/publication/9022bdee?page=26"> 2.8 Legal, regulatory and political environment </a>
<a title="IFU's best practice on business plans page 27" href="http://viewer.zmags.com/publication/9022bdee?page=27"> political risk insurance must also be addressed i</a>
<a title="IFU's best practice on business plans page 28" href="http://viewer.zmags.com/publication/9022bdee?page=28"> 2.9 Structure and financing The proposed organisa</a>
<a title="IFU's best practice on business plans page 29" href="http://viewer.zmags.com/publication/9022bdee?page=29"> Example: Proposed financing In DKK `000 </a>
<a title="IFU's best practice on business plans page 30" href="http://viewer.zmags.com/publication/9022bdee?page=30"> 2.10 Financial analysis One of the key elements </a>
<a title="IFU's best practice on business plans page 31" href="http://viewer.zmags.com/publication/9022bdee?page=31"> Operational costs: Projected operating costs must</a>
<a title="IFU's best practice on business plans page 32" href="http://viewer.zmags.com/publication/9022bdee?page=32"> Cash flows: It is important to set up the projecte</a>
<a title="IFU's best practice on business plans page 33" href="http://viewer.zmags.com/publication/9022bdee?page=33"> It is important to make sure that price input is </a>
<a title="IFU's best practice on business plans page 34" href="http://viewer.zmags.com/publication/9022bdee?page=34"> FINANCIAL RISK tFinancial performance and liquid</a>
<a title="IFU's best practice on business plans page 35" href="http://viewer.zmags.com/publication/9022bdee?page=35"> 2.11 Risks and opportunities – summing it all up </a>
<a title="IFU's best practice on business plans page 36" href="http://viewer.zmags.com/publication/9022bdee?page=36"> Example: Risk Overview Risk </a>
<a title="IFU's best practice on business plans page 37" href="http://viewer.zmags.com/publication/9022bdee?page=37"> 2.12 Time schedule While not inevitably constitu</a>
<a title="IFU's best practice on business plans page 38" href="http://viewer.zmags.com/publication/9022bdee?page=38"> 2.13 Appendices Any information that is deemed r</a>
<a title="IFU's best practice on business plans page 39" href="http://viewer.zmags.com/publication/9022bdee?page=39"> Appendix</a>
<a title="IFU's best practice on business plans page 40" href="http://viewer.zmags.com/publication/9022bdee?page=40"> A. Best practice for selection of management </a>
<a title="IFU's best practice on business plans page 41" href="http://viewer.zmags.com/publication/9022bdee?page=41"> Key questions · Expectations from the board t</a>
<a title="IFU's best practice on business plans page 42" href="http://viewer.zmags.com/publication/9022bdee?page=42"> B. Guidelines for board members A brief guide t</a>
<a title="IFU's best practice on business plans page 43" href="http://viewer.zmags.com/publication/9022bdee?page=43"> Following board meetings: Minutes from previous b</a>
<a title="IFU's best practice on business plans page 44" href="http://viewer.zmags.com/publication/9022bdee?page=44"> C. Checklist: Key questions 2.1 Executive summa</a>
<a title="IFU's best practice on business plans page 45" href="http://viewer.zmags.com/publication/9022bdee?page=45"> 2.4 Market, industry and competition What charact</a>
<a title="IFU's best practice on business plans page 46" href="http://viewer.zmags.com/publication/9022bdee?page=46"> 2.7 Sustainability What are the development impac</a>
<a title="IFU's best practice on business plans page 47" href="http://viewer.zmags.com/publication/9022bdee?page=47"> 2.11 Risks and opportunities - summing it all up </a>