Business plan

Golden key to unlock many

avenues….
 What is a Business Plan
• Roadmap to success
• Written document describing all relevant
internal and external elements and
strategies for starting a new venture
• Where I am
Where am I going
• How to get there?
• Guide and structure to manage in the
dynamic world.
 Scope
• Functions –plan _LT/ST _ Operations
_strategies.
• Plan scope – size-nature-time
 Who draws it
• Entrepreneur with help
• Skills required:
• Financial – tax
• Plan, forecasts
• Mkt
• People mgt
• Designing
• Organizing
• The entrepreneur assesses his own skill and
takes partners to strengthen weakness.
 Who uses
• Investors Banker
• VC
• Advisors
Suppliers
• Employees
• Contents influence the reader Therefore
all issues must be addressed.
Three perspectives while preparing
BP
• Entrepreneur
• Customer
• Investor.
 Nature
• Viability
• Guide to organizing
• Tool to get moolah
• Depth and detail size and scope of
business to be clarified if new or old.
 Evaluating the BP
• Payback debt and interest in stipulated
time
• Facts with objective analysis of opportunity
and risk quantifications and risk profile
• Character,cashflow,collateral,contributions
to equity.
 Presenting the plan
• Oral,pitch,ppt - are elevators
• Why it is a good opportunity
• Market scheme and reality factors
• Results of efforts
• Recognize risks
• Coverage
• ROI
 Information gathering
• Kinds – environment analysis,data,
• Sources-internet,field
survey/studies/primary & secondary
• Feasability studies data on market
finance,operational
• Define goals
 Information gathering…cont
Market target- size, target, share,compettion
Finance – forecast, csashflow, sales &
performance monthly /B/S
Operational- Location, Raw materials, plant
machinery, labour, space, O/H
 BP contents
1. Introductory page
2. Executive summary
3. Industry analysis
4. Description of the venture
5. Production plan
6. Market plan
7. Organisational plan
8. Risk assessment
9. Financial plan
10. Appendix.
 Introductory
• Name, address of
business,principals,nature of business,
statement of $ needed & confidential
bond.
• Summary
• Industry analysis- Environment scanning-
internal-industry& competition while
external –
economy,society,technology,legal
 Description of the venture
• Location,economic advantages and
privileges.
• Provides overview of products services &
operations .
• Begin with mission, vision
• Business definition & LT guidelines
 Production plan
• How Mfg?
• Outsourcing
market plan
• Product
• Price
• Promotion
• placement
 Orgn plan
• Structure
• Lines of authority & responsibility
• Agreements/deeds
RISK ASSESSMENT
• Potential hazards
• Alternate strategies to meet goals
• Even there is no risk discuss why!!!
 Orgn plan
• Mgt team
• Legal forms
• Ownership
• Liability
• Registration lisence
• Transferability of interest
• Control
• Psratio
• Tax
• Chart
• Jobdescription,bod,advisors.
 Financial plan
• Projections of key financial data for atleast
3 years
• Economic feasability and commitment of
own funds.
• Forecasts of sales,cash
expenses/CGS/Net P/L, PAT
• Cashflows projections
• Projected balance sheet.
 appendix
• Letters,market research data.lease deed
price lists etc.
 Features of a BP
• Determines where the unit has to go
• Forewarns of possible roadblocks along
the way
• Formulates responses to contingencies
• Keeps the business on track to reach its
planned goals.
• Keeps the intended audience in mind
while preparation
 Strategy – core item
• First part should be geared towards helping
develop and support solid business strategy-
explain mkt,industry,target customers and
competitiors-needs benefits- SAP/ETOP
• Second part –explain how to execute the
business strategy- all operations,products tie
with strategy
• Think competitively, realistically involve people
be factual and succinct
 Using and implementing BP
• Guide to 5 years
• Control and monitors- inventory
productuion quality sales disbursement
• Plans must be flexible.
 Failure???
• Goals set unreasonable
• not measurable
• uncommitted
• inexperienced
• no idea
• ,no customer.
DOCUMENTS TO SUPPORT
Personal resumes
Personal financial statements
Credit reports
Lease deeds
Letters of reference
 CONTENTS
1. TITLE PAGE
2. EXECUTIVE SUMMARY
3. COMPANY PLAN
4. MARKETING PLAN
5. FINANCIAL PLAN
6. SUPPORTING DOCUMENTS
 Early mgt decisions

• Record keeprecruitmotivate,fin control

• Create awareness R-