How to prepare business plan is what is shown in these slides; Hints for preparing marketing, operations, financial plan and also highlights the risk areas to be covered in the plan, the questions the plan should answer along with milestones etc.

3. Business Plan
 Business Plan “ is a written document that is spells out
where you are, where want to be and how want to get
there”
 It is also called “Project Report”, “Venture Plan”, “Loan
Proposal” , “Techno Economical Feasibility Study” and
so forth.

4. Elements of Business Plan
 Executive Summary
 Business Description
 Marketing
 Operations
 Management
 Financial
 Critical Risk
 Harvest Strategy
 Milestone Schedule

5. Hints for writing Executive Summaries
 No More than 3 pages
 What, How, Where , When – summarized
 Do it at last after finishing the plan.

6. Hints for writing Business Description
 Name of your business
 A industry background and history of your
company
 The potential of the venture
 Unique feature of this venture
 Form of your business – like sole
proprietorship, partnership etc.

7. Hints for writing Marketing
 Give realistic sales projection.
 Mention how you want to address the competition and
how you will succeed in your venture.
 Show market studies
 Identify target market, market position and market
share.
 Pricing strategy to capture market share
 Marketing Mix plan and the cost.

8. Hints for writing Operations
 Describe the location advantage ( like tax
benefits, resources abundance, labor
availability),
 List of infrastructure and machines needed
 Describe the supply and logistics advantages
 Provide operational cost.

9. Hints for writing Management
Give resumes of the key persons
Share holding patterns ( Sweat capital
etc.)
List of advisors, consultants etc.
Compensations for the key people.

10. Hints for writing Financial
Give estimated statements of cash
flow.
Present the Source and Use of the
funds
Present a capital and revnue budget
Mention the stages of financing and
the estimated quantum.

11. Hints for writing Critical Risk
 List of potential risks :
Price cutting by competition
Change in the trend
Possible Cost and Time over runs
Vulnerability of the sales projections.
Product development risks – cost, product failure etc.
supply chain risks
 What are the de-risking plans

12. Hints for writing Harvest Strategy
Outline the plan for exit – IPO, Sale etc.
Succession plan
Business continuity plans.

13. Hints for writing Milestone Schedule
Develop Chart, Schedule ( like CPM,
PERT, Gantt etc.) to list the phases of
the venture and showing the datelines.

14. Guidelines to prepare the Business Plan
 Keep it short – not more than 15 to 20 pages
 Keep it neat and tidy, with table of contents, exhibits,
appendices ,graphs etc.
 Create excitement by focusing on the emerging trends and
future potentials.
 Avoid exaggeration

15. Questions that Business Plan should answer
 Who is your customer?
 Why will they buy your product?
 Why will they buy from you and not from
competition?
 Do you have cost advantage?
 Does your management have relevant business
experience.
 How much money needed?
 How will you pay back to the investors and when?

16. Suggestions for Business Plan Presentation
 Highlight the pain your venture is addressing.
 Why you and Why now?
 Highlight the reachable market
 Explain the Business Model ie how this venture is
expected to make money.
 List out the plans and the process of reaching the target
market
 Mention the metrics to assess the potential and measure
the progress of the venture.
 Show enthusiasm when you present.