2. Basic Questions to be
considered
1. What is a Business Plan?
2. Why Business Plan is prepared?
3. For whom Business Plan is prepared?
4. What is the extent of Business Plan?
5. What are Features of a Business Plan?
6.What is strategic arrangement of Business Plan? or
What are its Contents?
3. Basic Questions to be
considered
How a Business Plan shoud practically be prepared? Or
How to write a Business Plan?
4. 1. What is a Business Plan?
Its made of two words
a. Business
b. Plan
5. a. Business
“Any economic activity undertaken to earn profit by
combining resources to deliver value to society in
response of whose unmet need it is started”
6. b. Plan
Product or Result of Planning
What is Planning?
All about:
1. Where am I? ( Situation Analysis)
2. Where do I want to go? (Destination)
3. How will I get there? (Road Map/Way Out)
7. b. Plan
“A document which contains all the necessary
information required to start, run ,grow and shut down
the venture profitably”.
“A mega document which contains different but related
documents covering different aspects of a new venture”.
8. 2. Why Business Plan is
prepared?
It guides an entrepreneur to put his dream to practice.
Model
9. 3. For whom Business Plan
is prepared?
A. Internals:
a. Entrepreneur
b. Potential employees
B. Externals
a. Potential Customers
b. Potential Suppliers
c. Potential Investors
10. 4. What is the extent of
Business Plan?
Following factors determine the extent of Business Plan:
a. Entrepreneurs orientation, ability and preference
b. Complexity of business
c. Level of Competition
d. Level of uncertainty
e. Available time & money resources
11. 5. What are Features of a
Business Plan?
Comprehensive
Communication
Guidance
Formal Planning Process
12. 6.What is strategic
arrangement of Business
Plan? (Contents)
A. Title/Cover Page
B. Table of Contents
C. Executive summary
D. General Business Description
E. Management Plan
F. Total Product & Service Plan
13. 6.What is strategic
arrangement of Business
Plan? (Contents)
G. Marketing Plan
H. Operations & Production Plan
i. Financial Plan
J. Appendix
14. A. Title/Cover Page
Name of the venture
Logo
Nature of business
Legal status//Type of ownership
Name of key entrepreneur
Amount of purposed investment
Statement of confidentiality
Location & address
15. B. Table of Contents
Things to remember:
It must match with internal arrangement of the
document
16. C. Executive summary
Things to remember:
Prepared in the end attached in the beginning
Must be originally written
Review at least three times and test
Must be paragraphed
Length 2 to 3 pages
17. D. General Business
Description
a. Introduction & rationale of opportunity
b. History of the venture if existing otherwise
background of the entrepreneurial team
c. Industry analysis
Demand
Supply
18. D. General Business
Description
Number of players
Growth trends
Stage of development
Major threats and opportunities
d. SWOT of the venture
e. Legal status of the business
f. Legal issues and requirements
Location (Is it a strategic location?)
19. E. Management Plan
1.Introduction of the entrepreneurial team
a. Name and address
b. Qualification
c. Experience
d. Current responsibilities & why
2. Hierarchy
3.Total number of jobs
a. Job descriptions
20. E. Management Plan
b. Job specifications
4.Human Resource Policies
a. Hiring process
b. Training & Development
c. Evaluation and Reward System
22. G. Marketing Plan
1.Analysis Phase
a. Customer analysis
b. Competitor analysis
c. Supply chain analysis
d. Sales forecasting
23. G. Marketing Plan
2. Action/Strategic phase
a. Product Plan
b. Pricing Plan
c. Promotion Plan
d. Placement Plan
3. Implementation & Control Phase
24. H. Operations &
Production Plan
1.Input/Supply/Purchase Plan
a. List of raw materials
b. List of suppliers and reason of selection
c. Supply schedule & payment plan
d. Storage facilities required
e. Transportation system
25. H. Operations &
Production Plan
2. Production Plan
a. Plant lay out
b. Machines, tools and plant
c. Capacity
d. Facilities
3. Total quality management system
4. Out bound logistics plan
26. i. Financial Plan
1. How much finance is required?
2. Where to get finance from?
3. Utilization and recording of financial results?