The document outlines the steps to writing an effective business plan. It explains that a business plan identifies a business idea, scans the environment, and assesses feasibility. The plan gives direction to the business vision, allows for objective evaluation of prospects, and can be used to monitor progress, persuade investors, and seek loans. Key components of an effective plan include preliminary investigation, idea generation, environmental scanning, feasibility analysis, drawing functional plans, project report preparation, and evaluation. The project report should justify needs, prospects, and financing in a logical, exhaustive, and aesthetically pleasing manner.

1. Writing Business Plan

2. Business Planning- Meaning
• Blue Print of the step by step procedure that would
be followed to convert a business idea into a
successful business venture.
• A business plan
 Identifies an idea
 Scan the environment
 Feasibility of the plan
 Allocates the resources

3. Objectives of the business plan
• Give directions to the vision
• Objective evaluation of the business prospects
• Monitor the progress
• Persuade others to join
• Seek loans from financial institutions
• Visualize the concept in terms of market,
operations, finance and organization
• Environmental Scanning
• Identify MIS gaps
• Identify resources and
• To document ownership

4. Preparing a business plan
1. Preliminary investigation
2. Business Planning Process
Idea Generation
Environmental
Scanning
Feasibility Analysis
Project Report
Preparation
Evaluation, Control
and Review.

5. Preliminary Investigation
• Review available plans
• Draw Key assumptions
• Scan the environment
• Seek Professional Advice

6. Business Planning Process
• Idea Generation
From various sources and methods.

7. Environmental Scanning
External Internal
Socio Cultural Raw Materials
Technological Production/
Operation
Economic Finance
Demographic Market
Government Human Resource

8. Feasibility Analysis
• Market Analysis
• Technical/Operational Analysis based on
the following data
Material Availability
Material Requirement planning
Analysis of choice of technology
Plan Location
Machinery and equipment

9. Financial Feasibility
• Cost of land and building
• Cost of plant and machinery
• Preliminary cost estimation
• Provision of contingencies
• Working Capital Management
• Cost of production
• Sales and production estimates
• Profitability projections

10. Drawing Functional Plan
• Marketing Plan
• Production/Operation Plan
• Organisational Plan
• Financial Plan

11. Project Report Preparation
The Project should be
• Sequentially arranged
• Exhaustive
• Logically and objectively explain projections for two
to ten yrs
• Professionally made to project that the promoters
possess the required skills and experience
• Justify financial needs, market prospects
• Attractive to investors
• High Aesthetic Value

12. Preparing a Project Report
I. Cover Sheet
II. Table of Contents
III. Executive Summary
IV. The Business
V. Funding Requirement
VI. The Product or Services
VII. The Plan -Marketing, Operational, Organizational,
Financial
VIII.Critical Risks
IX. Exit Strategy
X. Appendix