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Business plan

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By,
ViVek kumar

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Overview
 Description of the business
 Selecting business location
 Identifying the competition
 Detailing a marketing...

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1) Description of the Business:
Focus on the business concept and why such a business
opportunity exists as well as the p...

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Business plan

  1. 1. By, ViVek kumar
  2. 2. Overview  Description of the business  Selecting business location  Identifying the competition  Detailing a marketing strategy  Laying out a financial plan  Describing personnel/management needs  Designing a strategic plan for the present and future Business Plan FormulationBusiness Plan Formulation The Key Elements For SuccessThe Key Elements For Success
  3. 3. 1) Description of the Business: Focus on the business concept and why such a business opportunity exists as well as the products and services being offered, the pricing system to be used to meet costs and profits. Distinguishing your business products/services from others in the industry (lower prices, faster delivery, longer warranties etc.) and identifying potential customers and suppliers.
  4. 4. 2) Selecting an Appropriate Business Location  Consideration of location choices on the basis of business customers, accessibility and security and whether the location is conducive to the business specific industry needs.
  5. 5.  Knowledge of who the competition is with reference to the length of time in business, reputation, quality of products and services, customer service, number of employees, image and strengths and weaknesses. 3) Identifying the Competition
  6. 6. 4) Detailing a Marketing Strategy  Development of marketing/research techniques to help promote your business market using various advertising tools such as television, news, trade shows, telemarketing, sales programs, internet, radio, magazines, direct mail, long-term sponsorships, public relations (web presence, events, press releases), and other referral mechanisms (yellow pages).  Use of networking activities such as memberships or leadership positions and strategic alliances to bolster your business market.
  7. 7.  Assessment of the financial feasibility and profitability of a business , identification of funds needed and how the funds will be spent, the potential sources for funding (personal resources, banks, venture capital, angel investors, public agency loan programs).  Three years profit and loss statements (projections), three year cash flow summaries, balance sheets (assets/liabilities/net worth), and providing for supporting documents relevant to the plan (personal financial history, legal documents, leases, etc.) 5) Laying out a Financial Plan
  8. 8. 6) Describing Personnel/Management Needs  Description of the human capital skills and experience needed for a particular business, pay methods, fringe benefits, payroll taxes and the use of independent contractors versus employees.  Division of tasks/ reporting hierarchy / final decision makers.  Creation of an advisor group and Board of Directors.
  9. 9. 7) Designing a Strategic Plan for the Present and Future  Establishment of business priorities and goals, including branding, benchmarking, timetables for action, anticipated plans to retain and expand current markets and having an exit strategy.
  10. 10. Major components of a business plan I. Executive Summary II. Business Profile III. Market Section IV. Financial Statements
  11. 11. II. Business Profile  One page that states: Legal structure of the business (e.g., proprietorship, subchapter S, corporation, etc.) as well as the educational and professional background of management and principle stake holders. Brief past company history (if any), or related history of principals.
  12. 12. IV. Financial Statements  Start-up costs: licenses, equipment, inventory, remodeling, deposits, etc.  Show a break-even analysis: how many units must be sold to cover fixed and variable costs.  Produce pro-forma income statements: anticipated sales, expenses, and net profit or loss projected over the next three years.  Pro-forma balance sheets should cover: anticipated assets, liabilities and net worth of business.

Editor's Notes

  • List company banker, accountant, legal counsel industry expert and/or government regulations that impact on your operation. Enjoin these professionals in an advisory board that will help you with decisions.
    Include an organization chart (on separate page, if necessary).
  • Refer to the excel templates
    Important: If business is seasonal or credit is extended, create a pro-forma cash flow analysis showing business financial trends.
    Finally, when going for a business loan, financial statements should be prepared by an independent accountant, collateral offered should be appraised by an independent appraiser, and collateral and any existing receivables should clearly justify the amount and risk of the loan. In other words it should be equal to or greater than the debt. Financial institutions will expect a personal guarantee and/or co-signer.

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