P1: Activity 3: Negotiate, secure and manage business capital

Objective:To provide you with an opportunity to identify how to negotiate, secure and manage business capital to best enable implementation of the business plan.

ROLE PLAY:In order to make your artisanal bakery a reality, you mustnegotiate and secure capital.Create PowerPoint (or similar software) presentationwherein yououtline the following:

A business model, which should include the following:

How you will manufacture/produce your product

How you will sell the product from finding your target market to getting your product to the customers

How your business will make money, including details on how your customers will pay for the products

A marketing approach, which should include the following:

How you will position yourself in the market so the product you are offering will meet the needs of your target customers

Where you will locate the business

How you will set your products/business apart from the competition

Necessary experience within the business

Accurate estimates for required capital for theorganisationto be cash flow positive

Contingency plans for unforeseen events.

Present this information to a partner who will role playa lenderat a bank.The bank lender must listen and use questioning techniques to ensureinvesting in youis in the bank's interests.Your presentationmustbe appropriate for this audienceandshoulduse the negotiation steps of:

Preparation

Discussion

Clarification of goals

Negotiate towards a win-win outcome

Agreement

Implementation of a course of action.