Business plan for entrepreneurship

1. BUSINESS PLAN: THE ROLE IN BUSINESS & ISSUES IN THE
PREPARATION OF A GOOD BUSINESS PLAN
Prof. M.V.K. Srinivasa Rao Ph.D
Director, R&D and EISC, VIET,
Visakhapatnam
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2. THE CONCEPTUAL ISSUES AND
ITS ROLE IN BUSINESS
THE CONCEPTUAL ISSUES:
A business plan is a selling document, that conveys
the excitement and promise of your business to any
potential backers/bankers or stake holders.
A Business Plan is a written document that defines
the goals of your business and describes how you
will attain those goals.

3. THE ROLE OF BUSINESS PLAN
IN BUSINESS
 It avoids Business Failures: The reasons
are No market; No Capital, Inadequate
Team, Competition, Pricing. It provides
insights on steps to be taken and avoids
above mistakes. Helps us to understand the
timeline or gestation period to get
sustainability
 The 3 purposes: Creates effective strategy;
Determine future financial needs; Attract
investors or banks to give loans 3

4. THE PROCESS, TYPES AND ELEMENTS OF
BUSINESS PLAN
 Process : Identify goals; Inventory Recourses; SWOT
Analysis; Analyze Business Performance; Decision;
Implement Strategy; Evaluate Plan
 Types (6): Start-Up, Internal, Strategic, Feasibility,
Operations, Growth Business plans
 Elements (7): Executive Summary, Business
Description, Market Analysis, Organization
& Management Structure, Sales Strategies,
Funding, Financial Projections, Summary
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5. PART-1:EXECUTIVE SUMMARY
 The Executive Summary of a Business Plan is a 3-5 page
introduction to your Business Plan.
 The Executive Summary is critical, because many individuals
(including venture capitalists) only read the summary.
 The Executive Summary section includes:
 A first paragraph that introduces your business.
 Your business name and location.
 A brief explanation of customer needs and your products or services.
 The ways that the product or service meets or exceeds the customer
needs.
 An introduction of the team that will execute the Business Plan.
 Subsequent paragraphs that provide key details about your business,
including projected sales and profits, unit sales, profitability, and keys
to success.
 Visuals that help the reader see important information, including
highlight charts, market share projections, and customer demand
charts.
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6. Part 2: The Vision & Objectives of the Company
Part 3: Market Analysis & Marketing Plan
(SWOT) (PEST)
Part 4: Organizational Structure
Part 5: Management Team
OTHER PARTS
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Building
a
Business
Plan

7. TARGET CUSTOMER PROFILE
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8. ENVIRONMENT ANALYSIS: SWOT -A
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9. ENVIRONMENT ANALYSIS : PEST
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12. FINANCIAL PLANNING AND PROJECTIONS
CALCULATE SET UP COST:
 Fixed Cost /Capital /Start up Expenses
 Variable Cost / Working Capital
 Current Assets and Current Liabilities – WC
 Incomes - Expenses = Profit (Gross /Net Profit)
 Calculate BEP
FORECASTING PROFIT / LOSS:
 Capital Budgeting
 Pay Back Period / ARR / Discounted PBP/ARR
 NPV / PI / IRR 12

13. THANK YOU
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