The document provides guidance on developing an effective business plan and feasibility report. It emphasizes the importance of having a customer-focused plan that demonstrates how customer problems will be addressed. Investors care more about the merits and risks of the business rather than just the entrepreneur's ideas. The plan should include market assessments, industry analyses, financial projections, and team evaluations with evidence-backed assumptions. An effective plan convinces the entrepreneur and investors that the business model is viable and opportunities can be successfully exploited.

1. B.S.Pani
Span Resources Management Services
Bhubaneswar
14 th - 15 th March 2012
NIT : Silchar

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. 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 handled
4: 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.  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.  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.  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.  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. 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. 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. 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. 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
chain
7: Summery and Conclusion
- Tell what “You” have been told
- Why this opportunity is attractive and what are
domains on which your case rests.

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.  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.