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Business plan nuggets

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Basics of business plan writing

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Business plan nuggets

  1. 1. Entrepreneurship & Small Business Management (ESBM)-MSH-1109 Tutor: Mayank Choubisa (Guest Faculty) Birla Institute of Technology (Mesra), Jaipur Campus Getting Started Preparing a Business Plan
  2. 2. Lecture Outline  What to put in the business plan  Getting started  Government and non-Government support for business
  3. 3. The Business Plan  A sales tool  To attract investors or new business partners  Strategic document and action plan  Defines the company  Sets out objectives  Identifies priorities
  4. 4. Content of the Plan  Write for your audience  Good presentation  Ideas expressed clearly and concisely  Avoid too many management/technical jargons  Be realistic – not overly optimistic  Executive summary should entice the reader  Highlight the skills and talents of the team
  5. 5. Preparation  Goals  Route to market  Finance  Premises  Legal format
  6. 6. Legal Format  Sole trader  Partnership  Limited Company  Register with Companies House  Off the shelf company  Franchise
  7. 7. Essential Areas to Cover in the Business Plan  Executive summary  The business concept  Product or service  The market and competition  Management  Business operations  Financial projections  Marketing strategy  Bid for finance
  8. 8. Executive Summary  Includes the key elements from the plan  Should attract interest  Maximum length: 2 pages (1000 words)  Often written last
  9. 9. The Business Concept  Introduce the nature of the business  Include vision and mission statements  Delineates the focus of the business  States the aims of the business
  10. 10. The Product or Service  The product or service  What makes it different?  What value does it offer?  How will it be delivered?  What are the planned developments  Protection by patent?  For existing businesses  Current and planned products  History of the business
  11. 11. Market and Competition  Define your market  Industry sector, geographic scope  Market size  Focus on your target segments  How large is each segment?  What is your likely market share?  What are the trends?  Outline the principal competitors  Products/services  Advantages/disadvantages compared to you
  12. 12. Management  Demonstrate qualities to turn the Plan into reality  The entrepreneurial team  Education  Business experience  Key skills and talents  Other members of the management team  Define responsibilities  Recruitment  Training
  13. 13. Business Operations  Analyse the workforce in total numbers and by task/department  What premises does the business need?  What production facilities are needed?  What management information systems are needed?  Are there any regulatory standards which must be met?
  14. 14. Financial Information  The funding request  Financial statements ~ historical  Forecasts  Profit and loss statements  Cash flow  Balance sheets for 3 to 5 years  Clearly state the assumptions behind the forecasts  What-if scenarios
  15. 15. Marketing Strategy  How will you position your product/service in the marketplace?  Which markets are you going to serve now and where do you want to be in the future  Overview of the key aspects of the marketing mix
  16. 16. Bid for Finance  What is the money for?  How much will you be investing yourself?  What amount do you need?  When do you need it?  How and when will you repay it?  What security (if any) can you offer?
  17. 17. Appendices  Detailed analyses should be in an appendix and not in the Plan  Items which can go in an appendix:  SWOT analysis  Market research results  Financial data
  18. 18. Getting Started Business Start-up
  19. 19. Start-up ~ how long will it take?  Delays  Finding customers  Finding suppliers and distributors  Finding business premises  Building work  Recruitment  Research and development  Raising finance
  20. 20. The Start-up Obstacle Course  Everything takes longer than planned  Gaining market credibility  Forecasts are rarely accurate  Avoid profit margins being squeezed  Supplier relationships  Getting paid  Managing people and building a team  Fire-fighting
  21. 21. Employing Staff  Employment law  National minimum wage  The Working Time Directive  Fairness at Work Legislation  Ensure do not discriminate: race, sex, marital status or disability  Pay as You Earn and National Insurance  Employer’s Liability Insurance
  22. 22. Regulation  Register for VAT (Refer Current Regulations)  Employing staff  Business Link guide  New Employer’s Starter Pack  Self employed:  Inform Inland Rev (NI contributions): Class 2 + 4 NI  Limited Co:  Set up PAYE scheme  Inform local Inland Revenue office re Corp tax  Health and Safety  May have to register with HSE or local authority
  23. 23. Support Agencies  Business Links  Banks  Chambers of Commerce  Small Business Federation  Institute of Small Business Affairs  Institute of Directors
  24. 24. Websites  nasbic.org  http://business.gov.in  www.cmie.com  www.new-ventures.org/center/new-ventures-india  www.ibef.org/industry  www.bizTradeShows.com  www.researchandmarkets.com  www.statisticsofindia.com  www.securities.com  www.franchiseopportunities.com  www.indianindustryprofiles.com  http://msme.gov.in & http://www.laghu-udyog.com  www.ediindia.org and many many more…….

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