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: RT09 Subject:
A business plan is a dual purpose document used both inside and outside the firm. describes the strategy and operations of the venture. typically 25 to 35 pages long that describes what a new business aims to accomplish and how it plans to accomplish it. .A business plan is a document that explains the entrepreneurs vision. It is a written narrative.
A good business plan ensures smooth conduct of business and optimum use of resources. It acts as an important road map for the initial management team and the employees of the firm. It helps the entrepreneur to raise required funds for the venture. . It assists the managers in formulating appropriate strategies and policies for accomplishment It provides a basis for allocating organizational resources.
Recognizing Opportunities And Generating Ideas Evaluation Of Opportunities Selection Of Best Opportunities Decision On Location Develop A Business Plan Presentation Of Business Plan Feedback And Revision .
consultation with business/marketing consultants.etc. The business opportunity can be generated through various technologies such as market research. discussion with/brainstorming present customers. Entrepreneurs must recognize the opportunities and turn it into a successful business. . An opportunity is a favorable set of circumstances that create a need for new product or service.
the sources of such resources. 6. When it would possible to break even in sales?? What are the substitutes or competing products available in the market?? What competition exist in the market?? What would be the reaction of the competitors in the market?? . To evaluate the opportunity . Do the consumers or users need such product?? Would the consumers understand the idea behind such new product?? Can the existing set up handle the new product?? Will it require additional resources?? If so. 4. 7. 8. 2. 5. 3. the entrepreneur needs to find answers to the following question: 1.
Dimensions(areas) Of Feasibility Study : Technical feasibility study Safety feasibility Political feasibility Environment feasibility Market feasibility Economic feasibility Financial feasibility . At this stage feasibility study is undertaken to determine whether the business idea is viable.
.There should proper location of business unit not only for the production purpose but also for distribution of goods or products. Labor relations in the state area. Incentives from the government. Certain factors must be considered before locating the plant or unit. Infrastructure facilities. educational facilities. law and orders situation in the locality or state. Skilled workforce availability.etc. Social infrastructure such as health centers.
3. The business plan describes the future direction of the business. It tries to provide answers to the following three important questions: Where am I at present ?OR what is my present position? Where am I wishing to go ?OR what am I planning to do? What should I do to attain my plans? . 2. 1. The entrepreneur must prepare a sound plan in order to exploit the opportunity or idea.
. Presentation of business plan may be done by sending a copy or through oral presentation All the details of the business plan can be provided by PowerPoint presentation.
. The entrepreneur can also learn how to prepare a more effective presentation. a potential investor’s feedback helps the entrepreneur to improve the product or services. The response may be positive or discouraging. Some times.
business partners and key job candidates. use resources and ensure its survival. financial institutions and other stakeholders like suppliers.It is also useful to introduce the firm and the new business venture to the potential investors. It clearly indicates how the firm will face competition. .
Thank you .