A HELPING GUIDE FOR VENTURE IDEATION COURSE

UNDERGRADUATE SEM- III, SCHOOL OF BUSINESS

UPES DEHRADUN

Developed by

Dr. AJAY JHA

Assistant Professor (S.G.)
Venture Evangelist, School of Business
UPES, Dehradun, Uttarakhand

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Contents
VENTURE IDEATION COURSE OUTLINE .......................................................... 3

Module 1: Idea Generation (The Value Proposition) ......................................... 4

Module 2: Feasibility Study (Market, Technological, Commercial, etc.) ............... 7

Module 3: The Concept Note ....................................................................... 12

Module 4: Developing Product Prototype and Initial feedback .......................... 13

Module 5: Startup Project Road Map ............................................................ 16

Module 6: Business Plan Development ......................................................... 22

Appendix 1: Mentor Agreement Form for Venture Ideation ............................. 25

Appendix 2: Template Concept Note ............................................................ 28

Appendix 3: Template Business Plan ............................................................ 30

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 VENTURE IDEATION COURSE OUTLINE
UNDERGRADUATE SEM- III, SCHOOL OF BUSINESS
UPES DEHRADUN

The Venture Ideation Course is run across almost all the undergraduate programs
(Engineering, Management and Social Sciences) of UPES Dehradun. The program
intends to catalyze startup culture and build a strong and inclusive ecosystem for
innovation and entrepreneurship in the University. In order to motivate the startups, the
government provides various financial supports, which the university will try to facilitate
for the fruitful venture ideas coming from this program.
The course will be of 2 credits and the evaluation will be done on the same lines as other
project evaluations are done (Dissertation and Internship projects) in School of Business,
UPES, Dehradun. The venture projects will be undertaken by the venture groups formed
randomly with members from any program of the UPES as per the project requirement
(approx. 5 members but number is not fixed). The internal evaluation of the progress of the
project will be module wise and done by the respective mentor of the venture group. The
groups are expected to meet at least twice per week with its mentor and get the progress
report signed (Annexure 1). The University permits the mentor’s share in the fruitful
venture up to 7 % based on mutual consent between the venture group and the mentor.
The modules of the Venture Ideation Program are as following:
• Module 1 (Week 1): Idea Generation (the value proposition)
• Module 2 (Week 2 to 3): Feasibility Study (Market, Technological and
Commercial)
• Module 3 (Week 4): The Concept Note (One Pager Broad Outlines)
• Module 4 (Week 5): Developing Product Prototype and Initial
feedback
• Module 5 (Week 6): Project Road Map (Activities and Resource
Mapping, Budgeting, Infrastructure Road Map, Legal Procedures,
Incorporation, Partnership, etc.)
• Module 6 (Week 7): Business Plan Development (Above modules plus
Costing and Revenue estimates for next 3 years, Key Performance
indicators, etc.)
• Module 7 (Week 8): Final Presentation (an elevator pitch)

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Module 1: Idea Generation (The Value Proposition)

The very first step in startup project is preparing yourself for entrepreneurship, as it
requires hard work, dedication, perseverance and passionate commitment. Once you
have the reason, start asking yourself even more questions to help you figure out the
type of business you should start, and if you have what it takes.

• What skills do you have?

• Where does your passion lie?
• Where is your area of expertise?
• What external expertise is accessible to you?
• How much can you afford to spend, knowing that most businesses fail?
• How much capital do you need?
• What sort of lifestyle do you want to live?
• Are you even ready to be an entrepreneur?

You need to be brutally honest with yourself at this stage as this will create a foundation
for everything you do moving forward, so it's better to know the truth now than later.

The next important step in any startup project is the identification of unmet needs of
some customer (this will be the problem statement for your startup). There is no
pinpoint formula to identify the startup idea and most of the startup ideas have been
generated incidentally by observation of pain-point needs which got transformed later
into a problem statement. Validating with others who have also experienced this pain
initiates a customer discovery process. The next step in ideation comes looking for
potential solutions. If the solution you can look up is novel, then you have the
pioneering advantage. And if there are solutions already offered by different companies
then you must come up with a solution which gives you advantage in terms of better
cost, quality, service level or variety.
Other way of idea generation is to look up at the other possible applications of the
existing product, technology or knowledge already in your hand. Again, consider the
market niche(s) that your startup idea is applicable to.
• What are the needs of the industry and its consumers?
• Are there any unresolved problems faced by the industry?
• Is your startup idea going to bring resolutions and improvements to the
situation?

An article on Entrepreneur, “8 Ways to Come Up With a Business Idea,” helps people

break down potential business ideas(. Here are a few pointers from that article:

• Ask yourself what's next. What technology or advancement is coming soon,

and how will that change the business landscape as we know it? Can you get
ahead of the curve?

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 • Fix something that bugs you. People would rather have less of a bad thing than
more of a good thing. If your business can fix a problem for your customers,
they'll thank you for it.
• Apply your skills to an entirely new field. Many businesses and industries do
things one way because that's the way they've always been done. In those cases,
a fresh set of eyes from a new perspective can make all the difference.
• Use the better, cheaper, faster approach. Do you have a business idea that
isn’t completely new? If so, think about the current offerings and focus on how
you can create something better, cheaper or faster.

Also, go out and meet people and ask them questions, seek advice from other
entrepreneurs, research ideas online or use whatever method makes the most sense to
you.

Discuss within your group what are the available resources at hand and what
collaboration, or purchase of resources will be needed to achieve the foreseen solution.
This requires rigorous brain storming and building the group that passionately spends
time doing sketches on a whiteboard and scribbling all over the place to come up with
a concept. You need a common meeting place to discuss the idea or can virtually discuss
using some app, etc.

Ask someone for advice, it’s always good to have an experienced/knowledgeable

person as mentor for the startup project.

Some examples of Startup Projects

(Source://economictimes.indiatimes.com/articleshow/58891866.cms?from=mdr&utm
_source=contentofinterest&utm_medium=text&utm_campaign=cppst )

1. The idea: YourDost, online platform for counselling and emotional wellness

Eureka moment: When she was at IIT Guwahati in 2008, the suicide of a
batchmate upset Richa Singh. The classmate hadn't been able to take the
pressure. "The college had psychologists, but students were hesitant to get help,"
she says. Singh decided to set up a platform to address this with her colleague
Puneet Manuja.

Early days: They decided to create a platform where users could get help over
a call or chat using anonymous ids in 2014.
She did research and talked to as many people as she could to validate the idea
and found that almost 90% of respondents were open to using such a platform.
She raised $1.2 million from Saif Partners.

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 Now: YourDost has over 800 counsellors and does about 2,000 sessions a day.
They have helped around 10 lakh people get support.

2. The idea: NiYo Solutions, payroll and benefits platform for employees

Eureka moment: A banker for most of his life in Mumbai, Vinay Bagri started
thinking about becoming an entrepreneur after he moved to Bengaluru for three
years. He saw that most salaried employees didn't have a clue about salary
management. “There are 22 items that are exempt from taxation, but no one
could list them. Many fail to declare their investments since it's a huge hassle
and lose out on the money, “ he says.

Early days: Bagri got a commitment for $1 million in investment from Prime
Ventures' Sanjay Swamy in 2015. He quit his job at Kotak Mahindra and started
NiYo Solutions in 2016. He created a card that could be credited with benefits
exempt from tax. The platform also helps users file taxes using its mobile app.

Now: NiYo is available in Delhi, Bengaluru and Mumbai, and has over 50,000
users from 200 companies.

So, what is stopping you, go ahead and develop a venture idea.

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Module 2: Feasibility Study (Market, Technological,
Commercial, etc.)

Before you roll your sleeves up and get your business off the ground, you first
need to test whether your idea is feasible. A structured feasibility check
doesn’t have to be hard, but it will highlight major areas you need to consider,
including any potential risks.
A feasibility study is created in order to minimize risk and to ascertain the viability of
a project. As soon as it is certain that a specific project could be carried out profitably,
it is only then, that it could be implemented. It is not merely an investigation but at the
same time a plan or a framework on how the operation of a business project shall be
accomplished.
A feasibility study contains three major components namely: marketing study,
commercial study, and technical study plus other factors (like social desirability,
environmental health, etc.).
Market Study
During market study, the researcher must determine if there is enough demand for the
product as well the competitive position of the firm in the industry. It answers few
important questions like-

• What is the demand for your products or services?

• What type of customers will buy your products or services?
• The number of potential customers, who they are and their location.
• Why will your products or services appeal to potential customers?
• How do you intend to sell your products or services?
• Who are your competitors?
• Do your products or services fill a need not already met by your competition?
• How do your products or services rate in terms of price and quality compared
to your competitors?
• What are the strengths and weaknesses of your main competitors?
• What is your unique selling proposition?
• Are there any barriers to entering the market?
Commercial feasibility
Once you have determined that there is a market for your products or services you need
to consider the financial requirements to make it viable. In financial study, the
researcher should include the assessment of total capital requirements, break-even
outputs, sales and prices, amount of sales required to earn a certain amount of profit
and the cash payback period.

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Your commercial feasibility should cover the following questions:

• How much money do you need to make to meet your living expenses?
• How long do you expect to be in business before you make your first sale?
• How much money do you need to start up?
• How do you intend to fund the business during the startup phase?
• Estimate your fixed and variable costs.
• What price would your customers pay for your products and services?
• What is your sales forecast?
• What is your breakeven point?
• How long will it take to reach breakeven sales volume?
• How much working capital will you need to sustain operations?
• What is my target Return on investment?
• What type of Cash flow is expected?
Technical Study
Before you implement the new product or service project you should have some idea
of the resource requirements (human resource skill, machinery, technology, etc.) and
the activities to be undertaken. The manufacturing process, plant size, production
schedule, machinery, plant location and layout, structure, raw materials, utilities and
waste disposal is taken into consideration when it comes to technical study. In case of
software project, the availability of platform and its applications, IPR issues, etc. should
also be studied thoroughly.
Your technical feasibility should cover the following questions:

• Do you have or can create the technology to do this?

• Is the development or usage of technology legally permitted?
• Do you have the required skills to get the product or service to market?
• Do you have the people resource who can produce this?
• Can you develop the required production facilities?
• Are there manufacturers available to collaborate with you?
• What kind of partnership will be undertaken to secure mutual benefits?
• Are you using open source or closed software?
• Does the usage of open source software restrict or allows free usage?
• Is IPR required to protect your technology?

Other feasibility studies

You should also consider the following as part of your feasibility:

• Are there any regulatory requirements you must satisfy?

• What factors could potentially delay your business?
• Are there any social or environmental concerns related to your product?

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Example Feasibility Study ( taken from internet source:
https://www.smallbusiness.wa.gov.au/business-advice/starting-your-
business/feasibility-of-your-business-idea )
Topic: A Project Feasibility Study on the Manufacture of an Ergonomically Designed
School Backpack

Proposed Location: Paniqui Productivity Center, McArthur Highway, Samput,

Paniqui, Tarlac
Proponents: Russel D. Garcia, Kathleen E. Gonzales, Lara Joy T. Martinez, Jonelyn
F. Mendoza, Emmaloida H. Tabag
Degree: Bachelor of Science in Industrial Engineering
School: College of Engineering, Tarlac State University
Date: March 2003
Brief Description of the Project
The project proposes to manufacture an ergonomically designed school backpack,
branded as “Pack ‘Em All” It is a backpack aimed at helping elementary students to
correct posture and reduce stress on back and shoulder while carrying loaded
backpack. The bag has properties unique from other bags presently available. The
aluminum places at the back portion of the bag but it is not visibly seen and will serve
as the back support. The aluminum is contoured to fit the shape of the back. This will
trigger the back straightening of the user. This will prevent the user from slouching and
eventually develop a good posture. It has a wider sling to have a greater support. It has
a waist support to sustain the lower part of the torso. It has more space inside to cater
to students who bring lots of school materials. The bag is ergonomically designed for
the ease and comfort to prevent backaches, shoulder pain and abnormal curve of the
spine, thus creating a good relationship between the bag and the user.
Summary of the Findings
A. Management Aspect
The product shall be pre-operated eight (8) months before the start of the
operation. Partnership shall be the type of business organization and shall be composed
of five (5) partners. The organizational set up shall be in a line function. The business
shall have an initial capital of Php 625,000 and Php350,000. The business shall be
loaned from DBP.
The General Manager shall be the head of the organization. Under him is the Plant
Manager who shall be responsible on the production area, and has the overall control
on the company personnel, marketing of the product and even the allocation of budget
for the company. Along with him is a Secretary. Under the Plant Supervisor is the
Human Resource Personnel; under him are the Utility Man/Driver, Security Guard, and
Janitor/Messenger. Next is the Quality Control, under him is the Sewer, Machine

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Operator, Packager and Stockman. Next is the Marketing and Sales Personnel, under
him is the Purchaser. Finally, the Finance Personnel, next to him is the Accountant, who
shall be classified as retainer, because he shall render service only once every end of
the month. The required personnel shall come from nearby places of the plant and
within Tarlac. As soon as the business normally operates, all benefits are to be given
to all employees. The company shall hire additional workers after six (6) years of
operation, based on the forecasted increase of plant capacity. They are to be paid at a
minimum starting salary and shall also increase to 10% annually.
B. Marketing Aspect
The proposed product is based on the idea that elementary students have a hard time in
carrying their things from school and that in the latter of their lives, they may experience
back disorders if not properly taught. The demand of the supply shall be based the total
number of students from Grade IV-VI, and the supply shall be based on the existing
competitors in malls. A market share of and 43.2% is available for the product. Pack
‘Em All’ is the brand name of the product and is priced using Full cost pricing at the
market at an amount of Php 682.75 inclusive of Value Added Tax.
C. Technical Aspect
The bag is created for enhancing desirable human values such as increased comfort and
improved quality of life. The product will provide lumbar binder fitted to the body
waist, which will offer some trunk support through elevation on intra-abdominal
pressure and will serve to remind us of proper posture. It will also provide back support
for the spine. This support is made up of 0.4 cm thick and 2.5 cm wide flat-bar
aluminum material. Its height varies in three different sizes, 12, 14 and 16 inches. This
is based on the length of spine from Thoracic level 3 (T3) to lumbar Region five (L5)
of our target market.
The manufacturing process is based on the usual process done by any bag
manufacturing in the province, which is by the use of high-speed electrical sewing
machine. The molding process of the aluminum back support is done by a hydraulic
press. The whole production operation is estimated to have a standard time of 353.2455
minutes, including pattern making. But in case of mass production, this process will be
eliminated, and the total production time will be 104.8455 minutes or 1.75 hours.
The plant size or plant capacity is measures based on the machine used. The plant will
have the capacity of 10,080 units/day. The production schedule will be 10% of the
average market share every year to provide safety stocks in case any increase in demand
arises.
The plant is located at Paniqui Productivity Center, Brgy, Samput, Paniqui,
Tarlac. This building is divided into two parts. The first part has already been leased
and the proponents will lease the southern part. The building has a floor of 630
sq.m and has a monthly rental of Php 20.00 per square meter. It is a 4 1/2 drive from
our suppliers and 30 minutes away from our target market. It is along McArthur

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Highway, which makes it accessible to public transportation. Paniqui is known for its
sewing business, so laborers with that particular skill will not be a problem. Nearby
towns could also provide manpower for the plant. The water requirements will only be
minimum and will be supplied by the Paniqui Water District. The power consumption
will be generated from the Tarlac Electric Corporation (TARELCO). The plant will
not provide toxic wastes. Only excess fabrics will the wastes, and these will be sold to
some backyard manufacturing that produce tokens and small purse for different
occasions.
D. Financial Aspect
The current ratio or working capital ratio is one of the fundamental measurements of a
company’s liquidity. This measurement is computed by dividing the total current assets
by the total current liabilities.
For JR. JEK PARTNERS, the profit margin on sales means that for the year 2002, they
generated 6.66% of net sales. The decrease in the second-year results from the inability
of the plant to shoulder the expenses incurred in the production. But in the succeeding
years the company recovers with the increase in the profit margin.
Another way of testing the profitability of the business is through the use of rate of
return wherein it measures the rate of return to the partner’s equity of JR JEK
PARTNERS are 28.9%, 17.26%, 37.32%, 67.96% and 99.95% for the first, second,
third, fourth, and fifth, respectively ensure that the business is profitable.
With all other factors remaining constant, an increase in the partner’s equity will
decrease in return of equity.
For as long as the return of equity is greater than zero (0), the firm precisely earns
income or, on the hand, breaks even. Shortly stated, the firm operates in a favorable
performance. Thus, the project is financially feasible.
E. Social Desirability Aspect
The business enterprise is deemed to serve as a great contribution to the government’s
effort in raising revenues for its functions. These shall be in the forms of income tax,
permits, licenses, and other fees. The society will benefit as a whole because of its
ergonomically design at the customers comfort. Its design will help not to worry about
their child’s posture when they grow old. The introduction of the bag in the market will
pave the way of the competitors to lower their prices in order to maintain its
competitiveness. The unemployment rate in the country will get low because this will
provide jobs for the families. In this light, the manufacturing of the bag will attain its
desirability and acceptance.

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 Module 3: The Concept Note
Once you have converged on some idea after feasibility study you need to write the
concept note. A concept note is a summary of a proposal containing a brief description
of the idea of the project and the objectives to be pursued. It also describes the purpose
and projected outcomes of the project and is usually delivered to potential sponsors.
Sponsors prefer to understand a project through a brief summary rather than a full-
fledged proposal document.

To create a successful one, use clear, passionate language that expresses why your
project matters, and who will benefit from it.

The preparation of concept notes costs time and money, and only in specific cases the
project idea will fit a call of proposals. The concept note may undergo various
modifications, but the basic idea remains the same. It should include the summary of
feasibility study already taken to arrive at confirmation of idea.
“Any proposal needs the involvement of different team members, such as from the
technical, financial and administrative side. Input from stakeholders or other
specialists with different backgrounds helps bring in the necessary expertise, but also
a larger variety of ideas on how to solve a particular issue and achieve the previously
agreed objectives. To manage the proposal development in an efficient way it is
advisable to assign the lead role to one specific person. This person is then responsible
for the coordination of the overall proposal development, for communication with
potential funders and for making sure that all different pieces of input are brought
together in a consistent and coherent text” (PHILIP et al. 2008).

In order to prepare a successful concept note, you will have to spend time carefully
thinking and planning the action. How well you plan the action will largely influence
how good the actual results are. The planning is perhaps the most critical stage of a
project and this should reduce the risk of you preparing a concept note that is rejected
by the donor agencies (REPOA 2007).

The length and the format for writing a concept note actually depend upon the donor
agency, but for this program one-page note is sufficient (at most two pages). Most
donor agencies request a minimum of three pages to a maximum of five pages.

Do not overwhelm the reader with details but avoid sounding vague or unsure about
what you want to accomplish. Be positive and definite. (AUB 2010). Consider your
language. If your concept paper is going to be reviewed by scientists in your field,
scientific terms and technical jargon may be acceptable. However, if your proposal is
being reviewed by generalists or lay persons, this type of language will not
communicate your ideas effectively.

Only include budgetary information if it is specifically requested. Here in this course

your budget specifications will come in the business plan phase.

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Module 4: Developing Product Prototype and Initial
feedback

When you are a startup you need to focus on only two things
• Customers
• Your Product
For an early stage of your startup, getting user feedback is key to improving your
understanding of the product. Talk to your customers and stay focus on your startup
to update as your audience want.
After feasibility study and drawing the broad structure of implementation, you need to
work on your product and start taking feed backs from your target customers. A very
early draft of a product/process/concept is called the prototyping.

A prototype is an early sample, model, or release of a product built to test a concept or

process or to act as a thing to be replicated or learned from – Wikipedia.
When you have a product idea, you need to check whether it will work at all. Here
comes a product prototype as one of the cheapest and fastest options before moving to
further startup development. This way you see how your future product function will
and what it can look like.

Thus, a prototype is a very basic implementation of a future project. Simply put, it is

like a sketch that you introduce to investors to show your idea alive and running. Along
with that, the prototype’s performance is easier to understand for investors compared
to the technical documentation.

The leading goal of a prototype is testing. Your early adopters and investors are those
who accomplish this task. Creating a prototype allows you to get prior acquaintance
with the way potential users will interact with your future product. The development
team should collect the clients’ feedback and consequently make alterations to an
existing prototype or build a new one.

Frequently, before moving on to MVP development, you need to build lots of

prototypes with different scopes and content. Prototyping is additionally effective in
inventing fresh ideas about the startup product. With a product prototype, you can raise
funds and later create a minimum viable product based on it.

The initial prototype should be succeeded by a minimum Viable Product, which

implies placing in the market the initial product with few (essential) valuable features
to the end/target users so that you can get to know if your product will be accepted
well in the market or not. It provides feedback whether your audience is having a
good experience with the product and in the future what amendments and additions of
features need to be incorporated. So in simple terms, its launching the product with
the less feature so you can make the decision on the early stage.

“MVP software development isn’t about relaxing coding best practices or writing
sloppy code. It is about always keeping the core business in mind when developing.
This means building features that will actually help the business today. It’s about

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prioritizing so that those features which have the highest impact are built first. While
those features that won’t make a huge difference are left for a later time.” - Michael
Houghton

Remember the early launch of the product is not only the meaning of the MVP. You
should be clear that MVP does not imply the following:

1. A half product: This not something that early adopters like and likely want to
use the product.

2. A cheap product: User experience is the most essential part so the quality of
UI/UX is essential so that people can interact with the app. An app that doesn’t
get used doesn’t provide data.

3. About fast development: Fast development leads to the bugs and other
loopholes in the startup or app. So MVP is not necessarily about the fast
development than the full-featured product. MVP helps in the people not
finding the bugs, vulnerabilities, broken features, etc.

Prototype VS MVP

Prototype in simple terms a structure created in some software or on paper to show

someone our web or mobile application.

It can be helpful to you as you can create the prototype of your product and show it to
your customer and potential investor so that they can understand your idea. But don’t
think like you will get more than feedback because prototype only gives you feedback
from your customer or the investor. It’s difficult to get the customer who actually pays
without having anything they can truly trust on.

So, If you need your mobile and web app feedback early from your customer
prototype is the option.

MVP is useful when you need your business to run. Let’s take an example of any
product or application that have a clickable or interactive prototype to showcase, but
that proves nothing to the customer.

MVP is the product with primary functions so that the user can actually engage with
your product functionality. You can show this customer engagement to your investors,
which can help you to get the next-level funding. MVP is like a small investment, big
payoff.

The prototype is the process before MVP. It is not always necessary but to get the
customer and investor feedback it plays a vital role. Read the scenario of
choosing MVP and Prototype in the above table.

So, the difference between the two is the purpose. A prototype is used to define the
functionality. While MVP is already a basic but a functional product ready to on the
market, that could be further improved and scaled.

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Building yourself the Prototype or MVP?

The first step is to validate your concept by building a prototype and MVP. Say you
are making some software application on some platform, but what if you’re not a
developer? Should you outsource your MVP? It’s important to build and manage
the product yourself in the early stages. By working on it yourself, you’ll gain a
better understanding of your product. Even if you are not developer be involved
with the developing team at each stage of development. It’s also actually a fairly
difficult task to find the right freelancer or dev agency when your vision is unclear
with many unknown variables. It may be better to build your own MVP and iterate
along the way.

Example: Polymail
“Building a startup is a full-time job that requires your full attention. There are
many things such as market validation, building your prototype/MVP, and customer
development that are very time-consuming. Working full-time on your product will
definitely speed up the process. For Polymail, we started with three engineer co-
founders and built the entire MVP by ourselves. I worked on the design and front-
end development while the other two co-founders worked on front-end and back-end
development plus architecture. It is important to split up the work and use your
skillset to the fullest. Even if your founding team doesn’t include engineers, it’s
totally fine. It might be surprising that none of us (all the founders of Polymail)
studied computer science. We mostly self-taught ourselves by working on projects
and gained experience along the way. It helped us to be lean and gain more control
over our product.”
-Brandon- cofounder Polymail
Running a startup is time and money consuming. Many founders turn to accelerators
and VCs for funding. It’s difficult to get the funds before MVP stage, and hence in
most of the startup projects the initial funding came from family and friends. You at
UPES will have advantage of getting the seed fund right from the acceptance of the
concept note.
See Template for Concept Note in Appendix 3

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 Module 5: Startup Project Road Map

A project is about fulfilling business objectives. It’s about action. But without a plan
and mechanism to control that action, it can get out of hand quickly. The project
roadmap outlines the plan of the implementing the startup project, giving extensive
information about the operational plan, the ways to manage it and the results to be
delivered from it. Your systematic approach to project management is the substance
that holds your entire business operation together. Poor planning can spell death for a
project before it even gets underway.

While planning the project, it is ideally believed that all stakeholders have been
consulted or involved in the process. There are generally three main categories of
stakeholders involved in the process of writing the proposal viz. the project partners,
the investors and the community which is going to get affected by the idea.

A general format of the proposal consists of the following parts:

1. Problem Statement (Final concept and value proposition)

2. Project Rationale or Justification (Feasibility Report)
3. Project Goal and Objectives
4. Strategies and Activities
5. Infrastructure Required
6. Results: Impact, Outputs and Outcomes
7. Budget

Point 1 and Pint 2 we already covered in earlier modules, please incorporate here
in your project plan report. Coming to Point no. 3 (Project Goal and Objectives),
for a startup it is a bit arduous task as lot of uncertainty is still involved. The path
forward can often feel a little confusing, but by asking the right questions and
emphasizing the right things, you and your organization can create a goal setting
environment that pushes you towards your goals. To help you lets have a three step
process to your business objectives ( source:
https://www.projectmanager.com/blog/set-business-objectives-project):

i. Objectives Start with Value

ii. Without Goals, You Can’t Set Objectives
iii. Objectives are the Actions

i. Objectives Start with Value

Everything starts with value. Here’s a question to ask to help figure out what value
means to you:

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“How do we construct an organization that works for effective realization of that value?

You need to think about value not only as something to be delivered to your customers
but as a holistic part of your business and make decisions about how you will deliver
upon each of these in your own way. To clarify what this will look like, think about a
startup: it is going to have goals that are likely to include speed to market, and those
kinds of goals will mean that some of the human aspects of your projects will impact
certain potential team members differently than others. Which means that if you are a
startup with a lot of people with families, you are likely to have to scale back on
something or build a different team.

Ask these simple questions that will automatically guide you to your objectives.

• What capabilities do we need to be successful?

• What can we do that none of our competitors do?
• Why will our target customer pick us over other similar businesses?
• If we didn’t exist, what would our clients miss the most?

Understanding value is the basis and the jumping off point for better business
objectives. Next comes goals that are built off of this value.

ii. Without Goals, You Can’t Set Objectives

Value is the foundation of your business. You have to know where you are going in
order to take the proper steps to get there. After value, you need good goals. Goals are
simply a desired result that you want to achieve. In the context of setting better
objectives, they are essential because without clear goals you will be unable to set better
objectives.
Goals tell the story of where you are going. Objectives are steps you take to get there.
So, you need to make your goals clear, measurable, and relevant. There are many ways
to set goals. We’ve probably all heard about SMART goals, which are specific,
measurable, achievable, results focused, and time bound. You could do worse than that
to set your goals.
The big key here is to make sure that you take your value and create goals that are in
line with that value. Maybe you want to grow your business in a specific vertical.
Knowing this, you can set specific goals about where you want to see the business in a
quarter or a year.
Think of this like training for a marathon. Value is the idea that you want to run the
thing. Goals are the race you want to run. Objectives are the plan you put in place to
make sure you get to your goal, like a training plan for your business.

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 iii. Objectives are the Actions
To set the best objectives possible, you need to take these steps:

1. Make sure every action is consistent with your value and your goals. You don’t
want to get sidetracked by a bunch of busywork that doesn’t get you closer to your
goals.

2. Build a schedule. Schedules are powerful because they give you a sense of urgency.
You don’t want to get into a situation where nothing has urgency or where your entire
team is waiting for one piece of the project to be completed.

3. Map out as many actions as possible. I like to think of the planning and
implementation process as a learning experience. You are highly unlikely to be able to
imagine and account for everything at the start, but you don’t want to allow that to keep
you from doing anything at all. So, map out as many of the steps as you can think of
and create a schedule to revisit your action plan so that you can update it based off the
information you’ve learned throughout the implementation stages.

4. The idea of setting better business objectives needs to be tied tightly to your
organization’s willingness to act. The great thing about setting better objectives is that
when you do act, you should be taking actions that are in alignment with where you
want to see your organization moving.

Setting business objectives is about setting the stage for taking more effective action.
This is a process that should be at the top of mind for you at every step of the process
because many businesses take actions, but the real winners take the right actions.

4. Strategies and Activities

In project management, the action plan is literally a series of steps that must be taken
to achieve whatever the project objective is. It speaks to the resources that will be
needed to complete the project successfully, making a timeline that includes the tasks
needed to achieve that goal. Team members are also determined at this juncture. This
is where you list every step that must be taken to complete the project. Be thorough.
Brainstorm with the team. The more detailed, the better, as you can always flag what is
and isn’t necessary by noting its priority.
Once you have listed the tasks to be performed, you need to prioritize each task . That
is, it will be determined if the task is a high, medium or low priority, which will help
you make a more realistic plan by knowing what is critical to the project’s success and
what is not.
Determine ownership of each individual task by assigning it to a specific team member.
They will then be responsible for seeing the task through completion.
Set tentative timeline for each task. It is here that the due date is determined, so
everyone working on that task is clear about when they must have it completed.

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5. Infrastructure Required
You need to do the proper resource planning beforehand, to implement the plan. The
office infrastructure, the information procedure, the consultative mechanism and the
availability of partners, material suppliers and the technology developers. Some
flexible organization structure needs to be designed which gives the unity of direction
and purpose as well as innovation.
Answer following questions that will help you.
• Who will look after which task or process?
• Which department is responsible for the task, marketing, dev team, etc.?
• What is needed for completion of that task (software, equipment, materials,
site, etc.)?
• What amount of funding has the budget allotted to this task?
Having good team is the half battle won. The wrong team is among the top reasons
when you look at the research on why startups don’t make it. There is no such thing as
a solo entrepreneur. You cannot do it alone. A study by CBInsights shows that 23% of
startups fail because of not having a strong team with the necessary skills set.
Here ‘s how to hire a super team for your startup:

• Look for relevant experience

• Define your team culture
• Make sure they row in the same direction
• Tell them about customer service
• Get them to buy into your vision

6. Results: Impact, Outputs and Outcomes

Milestone signifies a change in development. It can help you communicate what’s
happening with your project. A very important part of project plan acts as a signpost
through your project. Define the right milestones for your team. Discuss with your team
the importance of each milestone to stay focused on the goals. Steps to set
successful milestones for the success of your project from the get-go.

1. Break the project into a list of deliverables

2. Identify project risks
3. Set progress reporting
4. Highlight important dates
5. Have a control over project deliverables
6. Clear objectives and requirements
7. Consider your stakeholders’ support
8. Be ready for the long run

Make sure with time your milestones go on being a bit more ambitious and soon your
projects will always be successful.

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7. Budget
An ideal way of starting to develop a project budget is to look at your project activities.
Although the project development process requires you to go back and forth from goals,
objectives to strategies and activities and back again, but once your activities are ready,
then you have achieved a great level of clarity. For example, if your project strategy is
about building the capacity of civil society leaders in your area, then you usually
organize workshops as part of the activity. Organizing workshops has costs involved:
There are costs towards hiring resource persons, booking a venue where participants
can gather, their transportation cost, food, lodging and materials and handouts. When
developing such an activity budget, you need to break up each and every expense to the
maximum detail.
However, for larger project proposals, there will be overheads and staff costs on top of
the activities that are listed out. To implement activities, you are required to have human
resources, an office and other operational mechanisms.
Human resources can be costs towards salaries for project officers, project assistants,
accountant or even consultants responsible for implementing the activities. There are
operating costs like rent, telephone, travel that are necessary to support the successful
execution of your project activities. Costs towards monitoring and evaluation should
also be included in the budget.
Salaries are a very sensitive part of the project budget – even for the sponsors/funding
agencies. More and more funders are resisting allocating money for salaries and
overheads. As they tend to become extremely controversial, it is important for startup
to be absolutely transparent about this part of the budget. Donors would be happy to
cover salaries if properly justified.
If you are calculating the project manager’s salary during the budgeting process, you
can first ask yourself the number of hours the manager is expected to work in a day.
You should reflect your local conditions and local market salary rate. Do not inflate
salary costs unnecessarily as it would irritate funders very easily. To justify the funder
that you are paying the salary as per the local market rate, you can refer to some
examples like government salaries or other project salaries.
If your manager is expected to work 8 hours a day, then you can calculate the salary on
per hour basis and the total on a monthly basis. You can mention the number of ‘man-
hours’ the manager is expected to give in a month’s time and the unit as the per hour
rate. Then you can mention the total salary of the manager.
Overhead costs refer to those expenses that are required by the organization to run its
operations and they do not cover any direct expenses of project activities. However,
they still form a part of many project budgets. They can include office rent, telephone
expenses, accounting fees, salaries to the organizational staff, repairs, supplies, travel
etc.
If your project is located in a very tough geographical landscape such as in remote
mountains and you require spending a lot of time and resources on travelling, then
including an overhead expense above 10% is justified. But in most cases, where project
conditions are easier, you should not allocate more than 8% of overheads.
Make provisions in your budget the source of funding also. Your project should not
totally base on funding / donor agency but there should be some matching contribution
(say 10 %). It does not mean that the donor agency is refusing to take responsibility for
this 10% but rather it wants to ensure that there is a certain presence of partnership and
a sense of ownership about the project and other stakeholders become part of it. But for
smaller organizations, it is still a challenge to source 10%. Below are some of the
options from where they can mobilize this 10%

20
▪ From own resources
▪ From University incubation Cell
▪ From the Government scheme or policy under progress
▪ From local Banks promoting startup.

One important element of matching contribution is that it does not necessarily have to
be in monetary form. You can explain to the donor that you and your team effort and
time to the project may be more than 10% of the total budget. There can be in kind
contribution like your organization’s office space, the staff time of some of your
existing staff like the director, accountant etc. who may be getting paid from another
project or from the University corpus funding. In-kind contribution from the community
can be in the form of land and labor and the costs can be evaluated and presented in the
budget.

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Module 6: Business Plan Development
Once you have completed the earlier modules, it is the time to write the business plan
for your project. Your business plan will include the crux of earlier modules and your
projections for future growth, returns and expenses (See template given in Appendix
3).

Let your mind roam, exploring every avenue that you'd like your business to go
down. Try writing a personal essay on your business goals. It could take the form of a
letter to yourself, written from five years in the future, describing all you have
accomplished and how it came about.

If you're having trouble deciding what your goals and objectives are, here are some
questions to ask yourself:

1. How determined am I to see this succeed?

2. Am I willing to invest my own money and work long hours for no pay,
sacrificing personal time and lifestyle, maybe for years?
3. What's going to happen to me if this venture doesn't work out?
4. If it does succeed, how many employees will this company eventually have?
5. What will be its annual revenues in a year? Five years?
6. What will be its market share in that time frame?
7. Will it be a niche marketer, or will it sell a broad spectrum of good and
services?
8. What are my plans for geographic expansion? Local? National? Global?
9. Am I going to be a hands-on manager, or will I delegate a large proportion of
tasks to others?
10. If I delegate, what sorts of tasks will I share? Sales? Technical? Others?
11. How comfortable am I taking direction from others? Could I work with
partners or investors who demand input into the company's management?
12. Is it going to remain independent and privately owned, or will it eventually be
acquired or go public?

It doesn't necessarily take a lot of money to make a lot of money, but it does take
some. That's especially true if, as part of examining your goals and objectives, you
envision very rapid growth.

Energetic, optimistic entrepreneurs often tend to believe that sales growth will take
care of everything, that they'll be able to fund their own growth by generating profits.
However, this is rarely the case, for one simple reason: You usually have to pay your
own suppliers before your customers pay you. This cash flow conundrum is the
reason so many fast-growing companies have to seek bank financing or equity sales to
finance their growth. They are literally growing faster than they can afford.

Start by asking yourself what kinds of financing you're likely to need--and what you'd
be willing to accept. It's easy when you're short of cash, or expect to be short of cash,
to take the attitude that almost any source of funding is just fine. But each kind of

22
financing has different characteristics that you should take into consideration when
planning your plan.

Almost any source of funds, from a bank to a factor, has some guidelines about the
size of financing it prefers. Anticipating the size of your needs now will guide you in
preparing your plan.

The next important consideration is cost. This can be measured in terms of interest
rates and shares of ownership as well as in time, paperwork and plain old hassle.

Test your idea against at least two variables. First, financial, to make sure this
business makes economic sense. Second, lifestyle, because who wants a successful
business that they hate?

Answer the following questions to help you outline your company's potential. There
are no wrong answers. The objective is simply to help you decide how well your
proposed venture is likely to match up with your goals and objectives.

Financial:

1. What initial investment will the business require?

2. How much control are you willing to relinquish to investors?
3. When will the business turn a profit?
4. When can investors, including you, expect a return on their money?
5. What are the projected profits of the business over time?
6. Will you be able to devote yourself full time to the business, financially?
7. What kind of salary or profit distribution can you expect to take home?
8. What are the chances the business will fail?
9. What will happen if it does?

Lifestyle:

1. Where are you going to live?

2. What kind of work are you going to be doing?
3. How many hours will you be working?
4. Will you be able to take vacations?
5. What happens if you get sick?
6. Will you earn enough to maintain your lifestyle?
7. Does your family understand and agree with the sacrifices you envision?

Template Business Plan

A business plan is a written description of how your business will evolve from when it
starts to the finish product.

As angel investor and tech-company founder Tim Berry wrote on Entrepreneur, "You
can probably cover everything you need to convey in 20 to 30 pages of text plus
another 10 pages of appendices for monthly projections, management resumes and
other details. If you've got a plan that's more than 40 pages long, you're probably not
summarizing very well."

23
Here's what we suggest should be in your business plan:

1. Title page. Start with name the name of your business, which is harder than it
sounds.
2. Executive summary. This is a high-level summary of what the plan includes, often
touching on the company description, the problem the business is solving, the
solution and why now.
3. Business description. What kind of business do you want to start? What does your
industry look like? What will it look like in the future?
4. Market strategies. What is your target market, and how can you best sell to that
market?
5. Competitive analysis. What are the strengths and weakness of your competitors?
How will you beat them?
6. Design and development plan. What is your product or service and how will it
develop? Then, create a budget for that product or service.
7. Operations and management plan. How does the business function on a daily
basis?
8. Finance factors. Where is the money coming from? When? How? What sort of
projections should you create and what should you take into consideration?

For each question, you can spend between one to three pages. Keep in mind, the business plan
is a living, breathing document and as time goes on and your business matures, you will be
updating it.

See Template for Business plan in the Appendices

Sources:

1. The Small Business Encyclopedia, Business Plans Made Easy, Start Your Own
Business and Entrepreneur magazine.

2. https://www.entrepreneur.com/money/moneymanagement/index143938.htm

24
Appendix 1: Mentor Agreement Form for
Venture Ideation

25
 Mentor Agreement Form for Venture Ideation

We, the undersigned members of Group BBA (LM) Semester III, will undertake
Venture Ideation Project on the topic
___________________________________________________
_____________________________________________________________________
_________under the mentorship/ guidance* of
_______________________________________________ and will submit the
Business Plan latest by 15th of November 2019 & Final Presentation latest by 30th of
November 2019.

Group Members Name Signature

1. Name _ SAP id _________________
2. Name _ SAP id _________________
3. Name _ SAP id _________________
4. Name _ SAP id _________________
5. Name _ SAP id _________________
6. Name _ SAP id _________________

Mentor’s Signature with Date:

Mentor’s Name*
Designation
SOB, UPES, Kandoli
Dehardun

* The mentor for venture ideation will retain the 5 % stake in the startup project coming
up with this exercise. The ideation group and the mentor mutually agree to this contract
which may be given a legal structure in future.

26
 Work Progress Report for Ideation Project
S.No. Date Work Mentor Remarks
Progress/ Signature
1 Discussion

27
Appendix 2: Template Concept Note

28
 Template for Concept Note
1. Title: it should be snappy, informative, and distinctive. It may be divided into
two parts with the first one being short and catching the readers’ attention and
the second one more ‘serious’ and informative.

2. Background: it may be composed following two guiding questions: 1. Why it

is crucial to address the problem identified? 2. What has already been done to
solve the problem?

3. Objectives: they should relate to the more general objectives as previously

agreed and entered into the local action plan.

4. Outputs (Goal, Objectives and Expected Results): they should be directly

related to the project objectives. Typically, they are tangible items, such as a
newly constructed technical facility, the protype, patent/publication of related
technology or information materials, or events, such as workshops or
stakeholder meetings. Depending on the project in question, intangible items
might also be mentioned, such as a rise in awareness.

5. Innovation: A separate section explaining the uniqueness of your project will

be very useful. As donors are interested to see what new value you are going
add to this project, this section will quickly introduce them to the innovative
approach you will use to address this problem. Although most concept notes
may not have this section, if you include it, it will create a positive effect on
the donor agency.

6. Activities and duration: A summary of the planned activities to achieve the

project objectives should be included here.

7. Beneficiaries and Target Customer: This section will be important for

getting “buy-in” from the sponsor. It should contain: The expected
profits/benefits, both in quantitative and qualitative terms, and when and
where they will occur.

8. Project management (includes monitoring and evaluation): Since your

project planning is going to come in next step, you can skip this aspect of
concept note. You can revisit your concept after completing next module of
Project planning.
This section should explain how the objectives will be achieved and how the
project will be managed and evaluated. It should become clear who will lead
the project and what roles and responsibilities the various people in charge of
tasks such as financial management, monitoring and evaluation will have.

9. Budget: Since your Budgeting is going to be part of your business plan in the
sixth module, you can skip this aspect of concept note. You can revisit your
concept after completing the module of business canvas plan.
Before drawing up the budget, it is necessary to get an overview of the inputs
needed to achieve the objectives. These may be, for example: people, travel
costs, vehicles, etc.

29
Appendix 3: Template Business Plan

30
<<COMPANY LOGO>>

<<COMPANY NAME>>
BUSINESS PLAN

<<Prepared by:__________________>>
<<Date>>

31
Strictly Private & Confidential
© <<Company Name>> <<Year>> <<Logo>>

Table of Contents

Page

Confidentiality Agreement ii

1) Executive Summary 1

2) Company Description 2
Promoters, shareholders and Board 2

Advisors 2

Products and services 2

Long Term Aim of Business 2

Objectives 2

S.W.O.T. Analysis 2

3) Market Analysis 3
Target market 3

Total market valuation 3

Targeted share 3

Market trends 3

Profile of competitors 3

Competitive advantage 4

Benefits to clients 4

4) Marketing/Sales Strategy 5
Income sources 5

Marketing strategy 5

Pricing 5

Advertising and Promotion 5

Sales Strategy 6

5) Research & Development 7

Patents, copyrights and brands 7

Product/Service Development 7

R&D 7

6) Staffing and Operations 8

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Management Organisation Charts 8

Staffing 8

Training Plans 8

Operations 8

7) Financial Projections 9
Key Assumptions 10

Profit and Loss Accounts 11

Balance Sheets 12

Cashflow Projections 13

8) Sales Pipeline 14

9) Funding Requirements 15

10) Appendices 16

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Confidentiality Agreement

The undersigned reader acknowledges that the information provided in this business plan is
confidential; therefore, the reader agrees not to disclose it without the express written permission of
<<Company/Promoter>>.

It is acknowledged by the reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information that is in the public domain through other means, and that
any disclosure or use of this confidential information by the reader may cause serious harm or damage
to <<Company>>.

Upon request, this document is to be immediately returned to <<Company/Promoter>>.

___________________________

Signature

___________________________

Name (printed)

___________________________

Date

This is a business plan. It does not imply offering of securities.

iii
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1. Executive Summary

<< Introduce promoters here, and the reason you are now preparing this Business Plan.

This section should not be completed until the business plan is written. It will highlight all milestones in
the company’s development over the next five years. It should sum up the following areas:

• Purpose of the plan

• Product or service and its advantages
• Market opportunity
• Management team
• Track record, if any
• Financial projections
• Funding requirements

Financial projections should be summarised and highlighted. The following format is suggested as a
guide:

Year 1 Year 2 Year 3

Sales

Exports

Net Profit before Tax

Investment

Employment

 Remember that potential investors often make a provisional judgement based on the executive
summary, and that their decision to read the main body of the business plan will depend on the
information presented here. The appendices at the back of the plan contain more detailed
information to support the main text of the business plan. >>

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2. Company Description

Promoters and Shareholders

<< Description of the people involved in starting the business:

• Promoters
• Management structure and areas of responsibility
• Shareholders names, no. of shares, % shareholding and cash investment to date

Advisors

<< Financial, legal, and other advisors should be listed, with names, addresses and contact details. >>

Products and services

<< Explain clearly what your product or service is and what it does.

• Background to its development

• Benefits and Features
• Unique selling points
• Advantages to customers
• Disadvantages or weak points
• Future developments >>

Long Term Aim of the Business

<< State the long-term aim of the new business. >>

Objectives

<< State the specific milestones to be achieved by the company over the next five years (sales, exports,
employment, product development, etc). >>

SWOT Analysis

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<< Analyse the strengths and weaknesses of the business and product or service, the opportunities that
exist in the marketplace, and the threats to the viability of the project. This is best done in a matrix
diagram as follows:

Strengths Weaknesses

• •
• •
Opportunities Threats

• •
• •
>>

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3. Market Analysis

<< This section covers market research and competitor analysis. You must show that you have done the
market research to justify the projections made in your business plan. It must demonstrate that there is a
viable market and that you can beat the competition in the market for sales. >>

Target Market

<< The market to which you are planning to sell the product or service. Analyse the segments of this
market as follows:

• Size of each market segment

• Is the segment growing or declining?
• Characteristics of potential customers in each segment >>

Total Market Valuation

<< Show the total potential value of the market for this type of product or service, in all the targeted
markets, domestic and international. >>

Target Company revenue

<< These figures are the basis for the sales figures in your financial projections and must be based on
realistic assessments. Include average deal size, length of sales cycle, recurring revenues>>

Market Trends

<< Analyse what is happening in the market:

• Recent changes
• Future predictions
• Drivers such as demographic changes, economic and legislative factors
• Implications for your product or service
• Your plans to meet future demands and changes in the market >>

Profile of Competitors

<<Analysis of your competitors in the market:

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• What are the competing products and services?

• Profile of key players (company size, turnover, profitability etc) and their market share
• Advantages and disadvantages of the competitors’ offerings >>

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Competitive Advantage

<< This is your assessment of why potential customers will choose to buy your product in place of those
profiled above. Advantages may include:

• Unique features
• Price
• New technologies or systems
• Better value to customers in terms of efficiency or ROI or cost/benefit ratios
• Greater compatibility with existing systems
• Include any independent validation or case studies >>

Benefits to Clients

<< This is what your product or service provides to potential customers in terms of their own business
goals. Does your product or service enable them to:

• Increase sales
• Increase efficiencies
• Save money?
• Save time?
• Maximise resources?
• Reduce errors?
• Reduce downtime?
• Improve Customer Service, reduce churn, increase loyalty

What will buying your product or service actually do for the customer? >>

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4. Marketing/Sales Strategy

<< This section sets out your strategies for reaching your target market, arousing their interest in your
product or service, and actually delivering the product or service to them in sales. >>

Marketing Strategy

<< How you will position your product or service in the market and differentiate it from its competitors:

• Which segments of the market will be targeted first and why?

• How will this be developed to reach the full target market?
• How will you differentiate your product or service?
• What key benefits will be highlighted?
• What potential customers have you already targeted?
• Have you a test site in operation, and what feedback is coming from this?
• What contacts can be used to generate market awareness and sales?
• Who will do the marketing: staff, agency, reps? >>

Revenue Sources

<< What contributions to revenue and profit will your business have?

State India Rest of

World

• Products

• Services

• Licences

• After sales

• Upgrades

Sales Strategy

<< How you will sell your product or service to the target market.

• Directly
• Retail
• Distributor
• Agent

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• Sales rep
• Website
• Revenue Sharing Partners

Analyse for each method the costs involved, whether it will reach the intended market efficiently, the
control you would retain over the pricing and positioning, the logistics, and the overall integration with
your marketing strategy. State the advantages of the methods you have chosen to sell your product or
service. >>

Pricing

<< How you will set the price charged for your product or service. Considerations include:

• Competitors’ prices
• Level of competition in the market
• Perception of quality-price relationship by customers
• Production costs and overheads
• Chain of distribution and the added-value at each stage
• The extent to which the buyer can control the price

State how each product or service will be priced, referring to the income sources above. >>

Marketing and Communications Strategy

<< How you will promote your product or service in the marketplace.

• Advertising – where, when, how, to whom

• Public relations
• Direct marketing
• Website and internet marketing
• Exhibitions and conferences
• Word of mouth >>

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5. Research and Development

Technology Roadmap

<< Show the intended future development of your product or service, i.e., changes to meet future market
demands, adaptations to international markets, or upgrades. Also detail plans for new products or
services to add to the range.

Include

• Team/Department structure
• Methodology
• Platforms used
• Milestones to be achieved
• System Overview Diagram>>

Research and Development

<< Indicate whether you will have ongoing R&D as an activity of the company, what areas this will be
exploring and what future contributions to the company you expect from this research. >>

Technical Partners

<< List all partners and indicate nature of involvement >>

IP, Patents, Copyrights, Brands

<< Indicate any protection available for your product or service: whether the technology can be or has
been patented, whether you can avail of copyright or trademark registration, and the brand image you
intend to build up as a protection against competition. >>

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6. Staffing and Operations

<< This is where you will outline the intended structure of the company in terms of management, number
of employees, and the physical operational requirements to produce or supply the product or service. >>

Management (including Board) Organisation Chart

<< Include a diagram of the way in which the management of the new venture will be organised. This
should show the areas of responsibility of each manager and the employees to be taken on over the next
three years. >>

Staffing

<< State what employees will be taken on over the next three years, with which skills, in which areas of
the business. >>

Training Plans

<< Outline the planned employee and management development to be undertaken in order to maintain a
skilled workforce. This should also tie in with the future market developments and any new product or
service developments. >>

Operations

<< State the physical requirements of the business:

• Premises
• Equipment
• Production facilities
• Infrastructure
• Communications facilities
• Costs involved
• Suppliers >>

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7. Financial Projections

I Key Assumptions p

II Profit and Loss Accounts p

III Balance Sheets p

IV Cashflow p

Requirements for Preparation of Projections

1. Opening figures included based on latest Mgmt/Audited accounts

2. Shareholders Fund analysed into Share Capital, Share Premium and

Retained Profits

3. Sales Assumptions provided by unit, price segment & geography and

reconciled to pipeline

4. Expenditure categorised into R&D, Admin and Overheads and Promoters

/ key managers salaries

5. Identification of monthly and cumulative company operational deficits

6. Sensitivity analysis may be required, detailing strategies to be

implemented if sales or expenditure targets are not met.

7. Projections should identify separately Operational Cash Flow and

external Cash Injections

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I Key Assumptions

<< This section reviews the key assumptions used in the financial projections. It is a guide to explain
how key figures in the financial projections were arrived at. Included here should be items such as:

• Income sources
• Number of employees projected for each year and their intended salaries
• Projected investment in equipment and materials
• Projected R&D costs
• Depreciation allowed for
• Expected rent and rates charges
• Creditor days expected and debtor days allowed
• Expense calculations

This section should be brief and to the point. Further detail regarding these items can be placed in the
Appendices. >>

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II Profit & Loss Accounts

<< Attach here projected profit and loss accounts for the first three years of the company’s operations.
>>

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III Balance Sheets

<< Attach here projected balance sheets for the first three years of the company’s operations. >>

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IV Cashflow

<< Attach here a monthly cashflow prediction for the first two years of the company’s operations. >>

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8. Sales Pipeline

Table as follows:

Name of Customer Size of Deal Date PO expected Probability % of

Getting Sale

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9. Funding Requirements

<< State here the total funding requirements of the business, and how those are intended to be provided.
You will also need to state the approximate breakdown of how these funds are to be spent.

Sources:

• Promoters’ funds
• Bank lending
• Grants or loans from agencies
• Investment already received
• Investment sought

Required for:

• Equipment
• R&D
• Marketing
• Staffing >>

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9. Appendices

<< This section is used to provide the detailed data on which the main text of the business plan is based, and to provide
extra information of interest to the readers of the business plan. Items for inclusion in appendices vary from business
to business, but normally include some of the following:

• Promoters’ CVs
• Detailed financial assumptions
• Most recent Company Audited Accounts
• Share Cap table and Investment history
• Term Sheet from Potential Investors
• Detailed market research findings
• Promotional literature
• Product or service information
• Details of company website
• Testimonials or letters of intent from customers >>

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