2. Learning Objectives
At the end of the chapter, student’s should be able to:
Explain what is business plan and demonstrate its
value.
Discuss the importance of business plan.
Define the parties who needs the business plan.
Develop and present a complete outline of an
effective business plan.
3. Introduction: What is Business Plan?
It is a written document that serves as a blueprint and
guided Technopreneur for a proposed business project
that they intend to undertake.
The information gathered regarding the project is used
in the Business Plan to predict viability, forecast success
and propose strategies for the project.
4. The Importance of Business Plan
A business plan is very important to
an entrepreneur for various reasons.
(Refer Figure 6.1)
Figure 6.1: The importance of a business plan
5. Who needs the Business Plan
Figure 6.2 Who Need the Business Plan
A business plan is very important to
various parties. Among those who
need business plans are:
6. Components of Business Plan
1. Executive Summary
2. Introduction to the company
1. Company background
2. Business project background
3. Location
4. Factory/Building/Premises
5. Existing Machineries/ Vehicle/Equipments
6. Proposed Machineries/Vehicle/Equipments
7. Current production capacity and projection of capacity
8. Raw materials required
9. Production Process
10. Quality Control process
11. Technology transfer
12. Gantt chart of the whole business plan execution
7. Components of Business Plan
3. Marketing Programs – The 4 Ps
Target market
Channel
Pricing
A&P
Product Value propositions
4. Competition
Market share, Competitors information including S & W
5. SWOT of products/services
6. Growth Strategy
Long term & short term goals – 3 yrs, 5 yrs, 10 yrs?
Quality, packaging, pricing, distribution, promotions, credits, product developments,
process improvements, branding
7. Management Team
Current Org Chart
Hiring plan for next 3 years
8. Components of Business Plan
8. Financials
P& L – 3 years projections
Cash Flows – 3 years projections
Balance Sheet – 3 years projections
Capital Planning & Requirements to start
Sales projection and breakdown – first 3 years
List Risks Exposure and plan how to manage
risks
