Entrepreneurship & Small Business Management
Tutor: Mayank Choubisa (Guest Faculty)
Birla Institute of Technology (Mesra), Jaipur Campus
Preparing a Business Plan
What to put in the business plan
Government and non-Government support
The Business Plan
A sales tool
To attract investors or new business partners
Strategic document and action plan
Defines the company
Sets out objectives
Content of the Plan
Write for your audience
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
Route to market
Register with Companies House
Off the shelf company
Essential Areas to Cover in the Business Plan
The business concept
Product or service
The market and competition
Bid for finance
Includes the key elements from the plan
Should attract interest
Maximum length: 2 pages (1000 words)
Often written last
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
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
Market and Competition
Define your market
Industry sector, geographic scope
Focus on your target segments
How large is each segment?
What is your likely market share?
What are the trends?
Outline the principal competitors
Advantages/disadvantages compared to you
Demonstrate qualities to turn the Plan into reality
The entrepreneurial team
Key skills and talents
Other members of the management team
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 there any regulatory standards which
must be met?
The funding request
Financial statements ~ historical
Profit and loss statements
Balance sheets for 3 to 5 years
Clearly state the assumptions behind the
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
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?
Detailed analyses should be in an
appendix and not in the Plan
Items which can go in an appendix:
Market research results
Start-up ~ how long will it take?
Finding suppliers and distributors
Finding business premises
Research and development
The Start-up Obstacle Course
Everything takes longer than planned
Gaining market credibility
Forecasts are rarely accurate
Avoid profit margins being squeezed
Managing people and building a team
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
Register for VAT (Refer Current Regulations)
Business Link guide
New Employer’s Starter Pack
Inform Inland Rev (NI contributions): Class 2 + 4 NI
Set up PAYE scheme
Inform local Inland Revenue office re Corp tax
Health and Safety
May have to register with HSE or local authority
Chambers of Commerce
Small Business Federation
Institute of Small Business Affairs
Institute of Directors