D4

Phase 2: Developing a Business

Plan
Window of opportunity is generally limited
A good business plan helps:
Exploit and develop the opportunity
Determine the resources
Obtain the resources
Successfully manage the venture created

Phase 2: Developing a Business

Plan
Written document describing all relevant internal and
external elements and strategies for starting a new
venture
It is often an integration of functional plans marketing,
finance, operations and human resources
It addresses short-term and long-term decision making
It is a game plan or a road map, and answers the
questions:
Where am I now?
Where am I going?
How will I get there?

Phase 2: Developing a Business

Plan
The business plan is important to the
entrepreneur, potential financers and
associates because:
It helps determine the viability of the venture
in a designated market
It provides guidance to the entrepreneur in
organizing his or her planning activities
It serves as an important tool in obtaining
finance

Phase 2: Developing a Business

Plan
Before getting down to preparing a business
plan, it is important to do a feasibility study of the
business concept
The information of which should concentrate on:
Marketing (markets and marketing impetus,
demographics, psychographics, seasonality issues)
Finance
Operations (location and accessibility, material,
equipment, skills required and sources, office space
and mode of procurement, overheads)

Writing the Business Plan

A worthy ordeal of about 200-400 hours
The plan must be comprehensive enough
to give:
Any potential investor a complete picture and
understanding of the new venture
Help the entrepreneur clarify his or her
thinking about the venture