This document outlines how to create an effective business plan in multiple sections. It discusses the objectives of a business plan, its various uses for funding and recruitment. It also describes the different types of business plans and provides steps for writing one. Key sections are identified like the executive summary, company overview, management team, industry and market analysis, operations, marketing plan, financial plan, risks, and appendices. Data requirements and components of each section are also defined to fully capture the business for readers.

1. MAKING A BUSINESS PLAN

2. Objectives
• To understand how a business plan is divided into
sections
• To list the uses of a business plan
• To lay out the steps involved in writing a business plan
• To list out data required in drawing up a business plan
• To discuss about the various types of business plan
• To understand the significance of an executive summary
• To understand the structure and composition of various
sections of a business plan
• To list the various appendices and exhibits needed in a
business plan

3. Uses of a Business Plan
• Equity funding
• Bank finance
• Alliances
• Recruitment
• Clarify the business
• Others

4. Kinds of Business Plans
• Summary Plan
• Executive summary
• Full Business Plan
• Operational Business Plan
• The oral presentation

5. Steps in Writing a Business Plan
• Define purpose
• Collect Information
• Put it down
• The rough draft.
• Financial analysis
• Finishing
• Review

6. Data Required
• Company details
– Documents relating to formation
– Shareholding details
– Permits and registrations
• Management
– Organization chart
– Details of key employees
– Consultants and advisors
– Compensation and other employee agreements
• Industry and Competitors
– Market statistics from secondary sources
– Reports on trends, etc
– Competitor data
– Customer surveys

7. Data Required
• Operations
– Product specifications
– Contracts and purchase orders for raw materials
– Competitive advantages
– Details of Intellectual Property (Patent, license, and trademarks)
– Regulatory approvals
– Industry standards as per regulations
– Plant layout and operations plan
– Research and development plans
• Marketing and Sales
– Marketing plan
– Advance orders, if any
– Marketing materials
• Financial Information
– Data on fixed and variable costs to be incurred
– Financial forecasts

8. Key Sections of a Business Plan
• Executive summary
• The company
• The management team
• The industry and the market
• Operations
– Starting up
• The marketing plan
• Financial plan
• Risks and contingencies
• Appendices

9. Executive Summary
The executive summary is probably the
most important section of the business
plan.
It is basically the whole business plan
condensed into a few pages
The main objective of the executive
summary is to entice the reader to go
through the entire plan.

10. The Company
• History
• Current Status
• Future

11. The Management Team
• Technical and professional qualifications
• Quality of work experience
• Experience in the relevant sector
• Reputation in the business community
• Evidence of moral integrity
• Financial capacity
• Networking with other vital people in the
industry

12. The Industry and the market
• An industry is a collection of sellers
• A market is a collection of buyers
– Concentrate on the relevant segments
• Competition

13. Operations
• Gantt chart outline setup
• Technology
• Raw material strategy
• Production planning
• Quality
• HR policy

14. Marketing
• Target Segments
• Branding
• Product
• Packaging
• Pricing
• Distribution
• Promotion

15. Finance
• Funds sought
• Projected financial statements
• Costing details
• Break even and payback analysis

16. Risks and Contingencies
Identify major threats and risks
Outline strategies for countering them

17. Appendices
• Copy of documents pertaining to incorporation or
formalisation of partnership.
• CV’s of the entrepreneur/s and of key employees
• Copies of various permits or permissions granted.
• Copies of papers pertaining to sale or lease of land for
the business
• Copies of documentation of proprietary intellectual
property
• Graphical representation of schedule including
milestones and dates
• Photographs of location
• Factory or plant layout
• Graphical representation of production process

18. Appendices
• Findings of market survey conducted
• Photograph of product or prototype
• Storyboards or mock-ups of advertisements
• Projected balance sheets
• Projected profit and loss accounts
• Projected cash flow statements
• Sensitivity analysis of P&L a/c
• Break even analysis
• Financial ratios