Creating a managable business plan

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Mr BS Pani's presentation on B-Plan (day2) at NIT Silchar

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Creating a managable business plan

  1. 1. B.S.PaniSpan Resources Management Services Bhubaneswar 14 th - 15 th March 2012 NIT : Silchar
  2. 2.  Not planning is planning for failure Planning is for future and for success only The deeper, farther and more accurate is the foresight – lower are the chances of plan failure. Plans are important but results are what count Prospective investors need a written business plan to asses the security and attractiveness of their investment. Vast majority of Business plans go unsuccessful. Not all Business plans succeed in raising money and not all plans that raise money succeed in delivering.
  3. 3. 1: Plans that are focused on the entrepreneur ,their ideas and statement of why both are unique and wonderful.2: Most are “my-idea” focused rather than “customer” focused.3: Investors care more about how customer problems are handled4: Investor wish to know both the merits and perils of the business proposal, their balance sheet, road map for utilising the merits and overcoming the perils.5; Investors wish to know the evidences on which assumptions have been made.
  4. 4.  Opportunities created by macro-trends Opportunities found by living and experiencing the customer problem Opportunities created by scientific research Opportunities proven elsewhere that you can pursue where you hope to do business.
  5. 5.  OBJECTIVE – to be able to differentiate myth f and wrong assumptions from ground realities and gather evidences to support assumptions. Sources of data (processed and formatted information) – - Primary – your own field study, personal interaction and interventions- necessary for identifying your industry, Critical success factors and assessing your entrepreneurial team - Secondary- Trade magazines, Trade shows, Govt. indu7sry data, professional economic and trade services, Books and publications, academic research papers
  6. 6.  Feasibility report – is an account of whether the proposed business in sustainable under current and projected economic environment at the proposed location, time frame and technological regime. To convince yourself the ‘correctness’ of your decision. To provide supportive data and information to prospective investors and stake holder of to take decision of supports.
  7. 7.  Business Plan describes the road map which would enable best exploitation of identified opportunities, elasticity of actions to identified uncertainties and ways of overcoming identified macro and micro environmental treats. May or may not be part of feasibility report. More internal and Management oriented than external factors. Reflects management team’s mind set
  8. 8. 1: Executive Summery –Briefly says what you are going to tell in the report to follow.2: MICRO level of market assessment : - Target Market and its SWOT - Target Market’s size and growth rate - Options of growing into other/related segments
  9. 9. 3: Macro level Market assessment : - Overall market size and growth - Macro trend analysis to asses future market growth and assessment.4: Macro level Industry assessment : - Whether the industry is attractive- growth – rate and direction. - Likely trends
  10. 10. 5: Micro level Industry assessment; - Proprietary elements - Superior organizational, technological, process, resource capabilities that cannot be duplicated. - Economic viability of business model : - Revenue forecast - Customer acquisition and retention cost. - Gross margins - capital investment required - Break even analysis - Operating cash cycle characteristics
  11. 11. 6: Team Assessment : - Team’s mission, aspirations and propensity for risk - Team’s ability to execute the CFSs in the industry - Team’s connectedness up down, across the value chain7: Summery and Conclusion - Tell what “You” have been told - Why this opportunity is attractive and what are domains on which your case rests.
  12. 12.  Not just YOUR ideas and technology- but- the uniqueness / differentiated (better, faster, cheaper) way you propose to address customer problems and pains. Is your target market large enough to accommodate a NEW Entrant and can YOU grow their to an Economics scale of operation. Entry barriers, YOUR strength to overcome them and the strength of competition to beat YOU at it. That YOUR initial advantage can be sustained.
  13. 13.  Quality and commitment level of the lead entrepreneur. Quality of the team / managerial group. Cash flow projections The commitment of the entrepreneur to risk his own money. The quality of reference material used to develop feasibility. Check on false and overtly aggressive and sweeping statements made in the reports/presentations/ discussions.

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