Business Planning Guide for Microfinance Institutions in Uganda

This guide presents a step-by-step procedure to assist MFIs in preparing a business plan.

MFIs need a good business plan to move in the right direction, raise money, prepare for the future and measure progress. The guide was developed by the Center for Microenterprise Finance (CMF), a component of the USAID funded PRESTO Project in Uganda. CMF aims to strengthen institutions that provide savings and credit services to microenterprises in Uganda.

The guide aims to help MFI managers in planning for their organization's development and creating a business plan. It builds on the foundation of microfinance best practices, including extensive outreach to the poorest, achievement of financial self-sufficiency through use of cost-covering interest rates and sound delinquency management. Through this guide, CMF seeks to assist MFI managers to:

• Understand the business planning process;
• Develop a mission statement for their organization;
• Assess their current situation;
• Determine their potential for development;
• Develop strategies for development;
• Produce portfolio projections;
• Project and analyze financial status;
• Produce a comprehensive business plan;
• Use a business plan as a management tool.