2. CONCEPT OF BUSINESS PLAN:
A business plan is a 15-20 page document.
Business plan defines:
Business
Product
Customer
Marketing strategies, and
finances
• It determine the steps you need to take.
it is also a roadmap.
It is also called as project proposal.
3. SIGNIFICANCE OF BUSINESS PLAN:
a. Risk management: b. Provides guidelines:
c. Communication: d. Attract investors:
e. prove the viability of the business f. evaluate competitors and find audience
g. Sets objectives for employees and managers h. Assists in making important business
decisions
i. understand when/how you will generate profit
j. provide guidance during difficult situations
4. SIGNIFICANCE OF BUSINESS PLAN:
a. Risk management:
In business plan every types of bricks are analyzed.
Every aspects of new business venture are carefully observed and analyzed so
business plan helps to deal with risks and uncertainties.
Business risk can be minimized and controlled through business plan.
5. B. PROVIDES GUIDELINES:
Business plans provides guidelines to business organization to reach to its
destination.
It also provides detailed information regarding how to achieve predetermined
goals and objectives.
It enables entrepreneur to evaluate whether the venture is going to the right
direction or not.
6. c. Communication:
Business plan has to communicate the detailed information and
analysis regarding business to the stakeholders of business.
Stakeholders for entrepreneur venture may be the supplier ,investor,
customer, employees and other parties.
7. D. ATTRACT INVESTORS:
Business plan house in attracting investors or lender to provide the financial
Support to start the business.
Potential investor will have a variety of questions about the potential or existing
business.
Such potential gets answer of the question with the help of business plan.
Business plan will help a firm to increase the chances of obtaining venture
capital and bank loans.
8. E. PROVE THE VIABILITY OF THE BUSINESS
• Many businesses are created out of passion, and while passion can be a great
motivator, it’s not a great proof point.
• Planning out exactly how you’re going to turn that vision into a successful
business is perhaps the most important step between concept and reality.
• Business plans can help you confirm that your grand idea makes sound business
sense.
9. F. EVALUATE COMPETITORS AND FIND AUDIENCE
• Another part of creating a business plan is researching the current companies in
the industry in which you want to work.
• By identifying competitors and where they are not currently reaching customers,
you can better predict how you will reach them.
• It can also help you choose your target audience.
10. G. SETS OBJECTIVES FOR EMPLOYEES AND MANAGERS
• Setting and measuring objectives will ensure that employees and managers are
clear on their duties.
• This can also help you choose the right staff for your business by setting clear
expectations and objectives.
• we also use this information to help with training new employees and managers.
• A business plan sets the expectations of the business from the beginning.
• If you change or update your goals, a business plan can help share these new
objectives, providing structure and accountability.
11. H. ASSISTS IN MAKING IMPORTANT BUSINESS DECISIONS
• Decision-making is an important task as an entrepreneur.
• Some decisions, like when to rent a new space or expand the business, are not
always easy to make.
• With a clear business plan in place, you can determine the specific times or goals
you must meet to make these important decisions.
12. I. UNDERSTAND WHEN/HOW YOU WILL GENERATE PROFIT
• Salary is not always clear as an entrepreneur.
• But, whether you are providing investors with an estimate of when they can
expect a return on profit, or you want to know how long until you will profit, you
will need a business plan.
• A business plan lists the expected costs of the business, as well as the revenue.
• As long as you meet the financial goals listed in the business plan, you can predict
when and how you will make a profit.
13. J. PROVIDE GUIDANCE DURING DIFFICULT SITUATIONS
• As an entrepreneur, you may have to deal with things like employee conflict or
even legal difficulties.
• A clear business plan can help you deal with these issues, identifying the purpose
of your business and what you hope to achieve.
14. Components of a Good Business Plan
• A business plan is essential for the inception, growth and overall success
of a company.
• These plans provide a business with a vision for the future and a clear
strategy for how to expand.
• There are several essential components of an effective business plan, and
understanding each of these components can help you create a plan that
leads your company toward success.
• In this article, we explore why business plans are important and discuss
the 10 essential parts of a business plan to include when developing an
effective one for your organization.
15. 1. TITLE PAGE
• The title page captures the legal information of the
business, which includes the registered business
name, physical address, phone number, email
address, date, and the company logo.
16. 2. EXECUTIVE SUMMARY
• Executive summary should summarize what you expect your business to
accomplish.
A good executive summary is compelling.
It reveals the company’s mission statement, along with a short description of its
products and services.
It is brief explanation why you’re starting your company.
The executive summary should not exceed two pages.
17. 3. INDUSTRY OVERVIEW
• The industry overview section provides information about the specific industry
that the business operates in.
• Some of the information provided in this section includes major competitors,
industry trends, and estimated revenues.
• It also shows the company’s position in the industry and how it will compete in
the market against other major players
18. 4. MARKET ANALYSIS AND COMPETITION
• The market analysis section details the target market for the company’s
product offerings. This section confirms that the company understands the
market and that it has already analyzed the existing market to determine that
there is adequate demand to support its proposed business model.
• Market analysis includes information about the target market’s demographics,
geographical location, consumer behavior, and market needs. The company
can present numbers and sources to give an overview of the target market
size.
• A business can choose to consolidate the market analysis and competition
analysis into one section or present them as two separate sections.
19. 5. DESCRIPTION OF MANAGEMENT AND ORGANIZATION
Here, you must also outline how your organization is set up. Introduce your
company managers here and summarize their skills and primary job
responsibilities. An effective way could be to create a diagram that maps out your
chain of command.
Don’t forget to indicate whether your business will operate as a partnership, a
sole proprietorship or a business with a different ownership structure.
If you have a board of directors, you’ll need to identify the members.
20. 6. Breakdown of Your Products and Services
While company description is an overview, a detailed breakdown of your
products and services is intended to give a complementary but full description
about the products that you are creating and selling, how long they could last and
how they will meet existing demand.
This is where you should mention your suppliers, as well as other key
information about how much it will cost to make your products and how much
money you are hoping to bring in.
You should also list here all relevant information related to patents and copyright
as well.
21. 7. MARKETING PLAN
This is where you describe how you intend to get your products and services in
front of your target customers.
In this step you will take to promote your products and the budget that you will
need to implement your strategies.
22. 8. SALES STRATEGY
This section should answer how you will sell the products that you are building or
carry out the services that you intend to offer.
Your sales strategy must be specific.
Break down how many sales representatives you will need to hire and how you
will recruit them and bring them on board.
Make sure to include your sales targets as well.
23. 9. OPERATING PLAN
• The operating plan provides an overview of the company’s physical requirements,
such as office space, machinery, labor, supplies, and inventory.
• For a business that requires custom warehouses and specialized equipment, the
operating plan will be more detailed, as compared to, say, a home-based
consulting business.
• If the business plan is for a manufacturing company, it will include information
on raw material requirements and the supply chain.
24. 10. FINANCIAL PROJECTIONS
This final section breaks down the financial goals and expectations that you’ve set
based on market research.
You’ll report your anticipated revenue for the first 12 months and your annual
projected earnings for the second, third, fourth and fifth years of business.
If you’re trying to apply for a personal loan. or a small business loan, you can
always add an appendix or another section that provides additional financial or
background information.
25. 11.APPENDIX:
Appendix of business plans is like its own mini library.
it is the entire plans supporting documents in clear, well organized way.
appendix should give detail to backup information presented in the main body of
the plan.
information which are not in the body of business plan is not included in in
appendix.
it can include documents like sales brochure, diagram, Cv’s, policy document,
market analysis report, copies of contract, copies of patents etc.
26.
27. Presenting the business plan
1. Pre- plan presentation stage:
This is the stage where data and information are gathered for doing little
research work about who are the audiences of presentation.
It is also knowing what type of investors usually are bencher and their
characteristics.
This will help to find out the specific presentation way to whom we are
presenting.
28. 2. PLAN THE PRESENTATION STAGE:
In this step outline of presentation is prepared.
All we collect presentation tools and equipment which will make presentation
more effective and attractive.
Tools and equipment can be computers, PowerPoint, projectors etc.
It also include planning of time and venue of presentation, arrangement of
refreshment and hands out.
29. 3. PRESENTATION OF BUSINESS PLAN:
This stage presenter starts the main event.
Presenter introduce himself or herself, company , Objectives of the
company briefly.
Presenter also clarify mission statement, explain firm’s product, target market,
market size, possibility of market growth.
Present marketing plan, supply firms financial information, description of
competitors, introduce management team and their backgrounds.
30. 4. QUESTION AND ANSWER SESSION:
In this state floor should be open for making questions to the investors and
other listeners.
Answering the questions logically, clearly, and honestly.
This will help to clarify the doubts of investors.
31. 5. POST PRESENTATION STAGE:
Presenter need to thank all the audience for their precious time and their
patience.
Presenter should appreciate their participation and looking forward to hear from
them.
It should be provided to the audience before they take leave
32. GUIDELINES FOR PREPARATION OF BUSINESS PLAN
• Writing of business plan is the major responsibility of entrepreneurs.
• It can also be prepared with the help of a team or consultants.
• If the business plan is prepared by a team, the entrepreneur should understand the
contribution of each of them.
• The entrepreneur should know who the target audience of the plan is.
• Business plan is usually formulated for the investors and lenders Entrepreneurs
should work hard to sale their business concept.
• Such tactic may help to attract investment and get credit.
33. 1. SIMPLE AND SHORT:
• The business plan should be simple and short.
• It should explain the venture clearly and concisely.
• It should be made readable within short time.
• It should not exceed 50 pages.
• It is because potential investors and lenders usually study only few pages.
34. 2. ORGANIZE PROPERLY:
• The business plan should be organized properly in various important elements.
• The overall neatness is essential to the effective presentation of the business plan.
3. TARGET MARKET:
• The business plan should carefully identify the target market or market niche for the business.
35. 4. FUTURE-ORIENTED:
The business plan should be future-oriented.
• It should point to future opportunities.
• It should describe what the venture intends to do and what the opportunities are for the use of
the product and services.
• It should provide guidelines about what are the goals of business, how are those goals have
been intended to achieve, and how will the business move to the define goal.
36. 5. FOCUS:
• The business plan should focus on an important and a core business opportunity.
.
6. CAPTURE INTEREST:
• The business plan should capture interest of readers emphasizing uniqueness of
the proposed venture. It should be convincing in the first page itself.
•
37. 7. EFFECTIVE TEAM:
• Entrepreneurs need to take considerable help from the effective team for
preparation of well-formulated business plan.
• The entrepreneur should understand the contribution of each team member.
8. CRITICAL RISKS:
• The business plan should consist of major events and critical risks. The critical
risks should be properly highlighted.
38. 8. USE OF EXPERT:
• If the entrepreneurs have subjective knowledge about the business, they can
prepare the business plan themselves.
• Otherwise it is harmful to copy others. In this case, they can use expert and
consultants for preparing effective business plan.
39. 10. APPEARANCE OF REPORT:
• The format of the business plan and its physical appearance make the first impression on
the reader.
• The business plan should be present as a report . Under it, the typing binding and
printing should be attractive.
• The pages of the plan should be crisp and clean, with wide margins and easy-to-read
type.
• Graphs and photographs should be of high quality, and all charts and exhibits should be
labeled and referenced within the body of the plan.
• It is also extremely important that the business plan be well written and well edited to
make it readable.
40. WHAT IS THE BUSINESS MODEL CANVAS?
• Created by Swiss entrepreneur and Strategyzer co-
founder, Alexander Osterwalder.
• Business Model Canvas is a visual representation of the 9
key building blocks that form the foundations of every
successful business.
• It’s a blueprint to help entrepreneurs invent, design, and
build models with a more systematic approach.
41. WHY IS IT SO POPULAR WITHIN THE BUSINESS COMMUNITY?
• Its simplicity. The business model canvas allows us to carry out a high-level
analysis without drilling down and getting lost in the details. You just draw out
the 9 building blocks on a blank canvas, fill them in as each concept relates to
your business, and hang it somewhere everybody can see.
• It’s a visual overview of your entire business on a single canvas.
42. 9 KEY ELEMENTS OF BUSINESS MODEL CANVAS:
• Customer Segments
• Value Propositions
• Channels
• Customer Relationships
• Revenue Streams
• Key Resources
• Key Activities
• Key Partners
• Cost
