Opportunity is a business concept which if turn into a tangible product or service, by the enterprise, will result into profit. So, a business plan is a road map of where you and your business intend to go. It is the ultimate tool for communication and marketing to all the investors, in a new ventures. A business plan gives a clear picture of your business and helps to make a decision based on the information we have supplied. It must articulate the strength of the business as well as long term goal for the business.
If you are starting a new business you will require a plan to clearly assess every aspect of the business and show how it will succeed. If you are buying an already established business you will need to identify the strengths and weaknesses of the business to decide if you will be able to make it a success. If you are already up and running and in need of extra finance you will need a plan to convince those putting capital into your business that you can and will succeed. If you are applying for any of the grants available.
Business plans are dynamic in nature. They are documents which needs constant modifications and continuously revaluate your strategy. The business plan must tell a story about business, and audience can clearly understand it. It should be written in professional manner.So here are the main section headings to compile your business plan :- Executive summary. General information regarding the business. Project Description. The Market and Competitors. The Marketing Plan. Capital Cost and Sources of Finance. The Operation Plan. Benefits of the business to the Society.
Executive Summary :- It is the first part of your business plan and the key element of the document. It must be crisp and concise, must summarize all the key sections of the business plan and must convey a clear and powerful message. The Executive Summary should describe the following :- Vision and Mission. The current position of business. Short term and long term objectives and how to achieve it. A Summary of financial forecasts.
General information regarding the business:- This section tell about basic information of the business. The points covered are as follows :- Business name, address and contact number. Details of key members of staff. Legal status of trader. Past production trends Future demands.
Project Description :- This section briefly describe about the project undertaken and it contains :- Mention the site, indicate the town, street or industrial estate. Whether the land is owned or leased. Location of industry. Details about physical infrastructure facilities. Machinery requirement for manufacturing process.
The Market and Competitors :- This section of the business plan would tell us about the market you are in to and your competitors. It highlights followings : Identifying your clients. Client’s expectations from your product and services. Details about your competitors. Do your competitor’s SWOT analysis and compare it with your business’s SWOT analysis.
Marketing Plan :- It should clearly describe the customer and the market size. It should focus on sales strategy and the no of people you need to execute strategy. It should also focus on preparing your product attractive. It should also specify sales channels and partnership. In short it includes details of Market Research. Your Target Market. The Competition. Marketing Methods.
Capital Cost and Sources Of Finance :- The most important aspect of finance is preparing financial forecast and financial analysis. It outline :- Develop financial projection How much capital you need to raise How will you use the proceeds How you intend to finance your businessFollowing are the other financial aspect that must be included in business plan Projected balance sheet Projected profit and loss account Projected cash flow statement Break even point of sales
The Operation Plan :- The operation plan is nuts and bolts of your business It illustrates the steps taken to operate the business successfully and profitably It is the action plan along the time period to carried out the operation.
Benefits of the Business to the Society :- This section can be classified as Impact of the business on the economy Contribution of the business to the society. Promoting employment
WHAT IS MARKETING?Marketing deals with identifying & meeting human and social needs. -Philip Kotler.Marketing is an organizational function and a set of processes for creating, and delivering value to customers and for managing customer relationships in way that benefit the organization and its stakeholders. -American Marketing Association.
Marketing plan is a business document writtenfor the purpose of describing the current marketposition of a business and its marketing strategyfor the period covered by the marketing plan. Thepurpose of creating a market plan is to clearlyshow what steps will be undertaken to achieve thebusiness marketing objectives. The marketingplanning process is summarize in the diagrambelow.
1.Current business situation:- Financial results Sale figures and trends Market share Customer satisfaction Level of repeat business2. Marketing environment :-
• Political environmental(Trading Agreements, tax rules,employemnt regulation, environmental registration) MACRO- • Economic environmental (Recession,intrest rates, exchange rates, rate of inflation, Population wealth)ENVIRONMENT • Social environmental factors(GREEN behaviour,Eating Habits, Shifts in attitude, population demographics) • Technological factors(emergence of new communication channels, improved production processes, advances in computing and the internet). • STAKEHOLDERS • COMPETITORS MICRO- • SUPPLIERSENVIRONMENT • INTERMEDIARIES • CONSUMERS • EMPLOYEES • CASH FLOWS INTERNAL • CAPITAL ASSETSENVIRONMENT • MATERIALS • STRUCTURE
5. Identifying opportunities in the marketing environment
5. Identifying opportunities in the marketing environment
Mission Vision Objectives Selecting a suitable strategy:-
Penetration: A good quality product at a lower price than the competitors, aims to gain market share by penetrating in the market. Skimming: skimming refers to a firms desire to skim the market by selling the product or providing service at a premium price. Differential strategy: A product or service which is perceived as unique within a particular market. Geographic Pricing strategy:Price is at premium in one market and discounted in other. Psychological Pricing Strategy:
The Marketing Mix is a selection of customerfocused business elements which work together as atool kit to market your product or service. Thetactical section of a marketing plan summarizes howyou intent to use each element of marketing mix,which can be summarized in 7 P’s.
Developing an action plan Measurements, controls and reporting Continuous analysis Project delegation & timing
BUSINESS PLAN V/S MARKETING PLANPARTICULARS BUSINESS PLAN MARKETING PLANMEANING Business plan focuses on the Marketing plan is just a business operations as a one element of a large or whole. Factors relating to even a small business accounting, economics, which mainly focuses on finance, management and increase of sales, marketing are present in research and business plan. development of a particular product of a businessPURPOSE The Business plan helps an The Marketing plan organization meet the focuses on the increment specifications of a of sales of a business successful business with the product. Strategies and main focus on its operations careful plans and are and objectives following devised in order to growth strategies and plans increase sales of a in the long run. product to earn profits and revenues
PARTICULARS BUSINESS PLAN MARKETNG PLANCOMPONENTS A Business plan A Marketing plan is comprises of accounting, one of the element of managerial, economical, a business plan marketing and financial focusing on research aspects of the business and development of operations. products according t the needs and demands of target market.CAPITAL A Business plan is A Marketing plan important for funding. It requires one year requires a five year plan period for planning to project into the future. the strategies.