In this chapter of your business plan you will describe the current situation that you want to improve with your business idea. Do not describe in detail the different activities you plan, this will be done in the marketing plan.
Describe the current situation in your potential field of activity
Example: The economy of country x has been developing at a fast pace in the past 5 years. More and more companies went international and decided to export their products. In parallel the value of imported goods is constantly rising.
A study done by the chamber of commerce showed that inefficient purchasing and supply practices threaten the competitiveness of the domestic companies. Especially the agricultural sector and the automotive supplier industry seem not to be able to compete in terms of prices and quality demanded by their customers.
One main reason can be seen in the lack of professional training for purchasing & supply chain professionals in country x. Only a few companies train their supply chain professionals. Out of around 60 training institutions only three offer management training that covers logistics and/or supply topics.
Explain your solution to the current situation
Example: Association yz will offer a full support package to supply chain professionals. This package will comprise training, professional networking and supply chain information services.
The association will use internationally recognised SCM learning materials and training methods. The association will adapt its training programme to the country and to specific target sectors.
In order to enhance learning transfer and best practice the professionals will be offered in workshops and experience exchange events. Additionally, the association will create plenty of networking opportunities for SCM professionals.
The association will further build strong SCM related information services for SCM professionals in order to keep them up-to-date with news, trends and technological developments.