Entrepreneurship Development- Business Plan Preparation for New Ventures What is Business Plan? Elements of a business plan Business plan reading process Essential guidelines Benefits of a business plan Pitfalls to avoid in planning

1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated to Institution of G.G.S.IP.U, Delhi
Text
BCOM(Hons.)
Entrepreneurship
Development
888305
Business Plan Preparation for
New Ventures
By:
Saguna Khajuria
Assistant Professor
Wednesday, October 14, 2015

2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
What is Business Plan?
• A business plan is a written document
that details the proposed venture.
• It must describe the current status,
expected needs, and projected results
of the new business.
• Sometimes it is also referred to as
venture plan.
Wednesday, October 14, 2015

3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Business Plan
• The business plan describes to
investors and financial sources all of
the events that may affect the
proposed venture.
• It helps the enterprise avoid common
pitfalls that often undo all previous
efforts.
Wednesday, October 14, 2015

4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Elements of a business plan
• Section I: Executive Summary
• Section II: Business Description
• General description of the business
• Industry background
• Goals and potential of the business and
milestones
• Uniqueness of product or service
Wednesday, October 14, 2015

5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Elements of a business plan
• Section III: Marketing
• Section IV: Operations
• Section V: Management
• Section VI: Financial
• Section VII: Critical risks
• Section VIII: Harvest Strategy
• Section IX: Milestone Schedule
• Section X: Appendix/ Bibliography
Wednesday, October 14, 2015

6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Business plan reading process
• Determine the characteristics of the venture
• Determine the financial structure of the plan
• Read the latest balance sheet
• Determine the quality of entrepreneurs in the
venture
• Establish the unique feature in this venture
• Read over the entire plan lightly
Wednesday, October 14, 2015

7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Essential guidelines
• Keep the plan respectably short
• Organize and package the plan appropriately
• Orient the plan toward the future
• Avoid exaggeration
• Highlight critical risks
• Give evidence of an effective entrepreneurial team
• Do not over-diversify
• Identify the target market
• Keep the plan written in third person
• Capture the reader’s interest
Wednesday, October 14, 2015

8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Benefits of a business plan
• It helps an entrepreneur avoid a project doomed to
failure
• It stands as the entrepreneur’s description and
prediction for his/ her ventures
• Helps to view the venture critically and objectively
• It subject the entrepreneur to do close scrutiny of
his or her assumptions about the venture’s success
• It quantifies objectives, providing measurable
benchmarks for comparing forecasts with actual
results
Wednesday, October 14, 2015

9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Benefits Continued
• Works as a communication tool for outside financial
sources as well as an operational tool for guiding
the venture for success
• Provides the details of the market potential and
plans for securing a share of that market
• The plan identifies critical risks and crucial events
• Provides a comprehensive overview of the entire
operation
• Provides a useful guide for assessing the individual
entrepreneur’s planning and managerial ability
Wednesday, October 14, 2015

10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Pitfalls to avoid in planning
• No realistic goals
• Failure to anticipate roadblocks
• No commitment or dedication
• Lack of demonstrated experience
• No market niche (segment)
Wednesday, October 14, 2015

11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
THANK YOU
Wednesday, October 14, 2015