Definition of Business Plan

Business plan may be defined as blueprint of entrepreneur intentions from the start-up to
the business project implementation. In another word business plan may be defined as a
written document that serves as a roadmap or journey of entrepreneur from start-up to
project implementation. It describes all relevant element involved in starting a new
business enterprise. This comprises of functional plans like marketing, finance
manufacturing and human resource. All potential inventors and suppliers also need a
business plan because it shelves them in making decision. In another word plan may be
defined as deciding in advance what to do, how to do it, when to do it, who is to do it? In
order to make goods and services available for the status action of product and potential
.needs of customers
Importance of Business Plan to Business Entrepreneurs
Business Plan is very important and every entrepreneur drives a lot of benefits from
-:effective business. The importance and benefit of Business plan includes
1. It helps an entrepreneur to decide where he want to go
2. It help to defining the inability of the venture
3. It provides guidance to the entrepreneur in planning realistic goals and target in
organising and even in identifying possible road blocks
4. It is a prerequisite to obtain finances
5. It gives direction and focus
6. It leads the past with present
7. It is a means of predicting the future
8. It help in bringing effectiveness and efficiency
9. It is means of starting policies and programmes
While making business plan you should keep in mind the following points
1. Target audience: This has to do with the people you want to serve
2. Business Strategy: the plan should towards formulating solid business strategy. It
should explain the market, the industry target customers and competition.
3. Be realistic: You should be realistic in your plan and try to have contingency reserve
in case failure.
Techniques and content of comprehensive business plan
-:Any comprehensive business plan should contain the following
1. Introductory page:- This page comprises the following:
a. Name and address of the business
b. Name and address of principle owners
c. Nature of the business
d. Statement of financial requirement
e. Date of the plan
f. Name of the person preparing the plan
2. Industry analysis: The industry analysis of the business plan comprises the
following
a. Future outlooks at trends
b. Analysis of competitors
c. Market segmentation
d. Industry focus
3. Description of ventures:- This part of the business plan include the following:-
a. Product
b. Services
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 c. Size of the business
d. Effective equipment and personnel
e. Background of entrepreneurs
4. Production plan:- This part of the business plan may include:-
a. Inventory process
b. Physical plans
c. Machinery and equipment
d. Names of suppliers of raw materials
5. Marketing plan:- This may includes
a. Pricing
b. Distribution
c. Production
d. Product focus
e. control
6. Organisational plan:- This aspect of business plan include:
a. Forms of ownership
b. Identification of partners or principles share holders
c. Authorities of principles
d. Management team
7. Risk assessment:- This may include a valuation of weaknesses of the business
a. Analysis of technological change
b. Contingency plan
8. Financial plan:- This section include business income statement
a. Cash flow projection
b. Performance balance sheet
c. Brief action analysis
d. Sources and application of fund
9. Executive summary: This summarises in few lines or pages, the whole business
plan, it convey a clean short and precise function of the business
10. Appendix: This contains a back-up materials like
a. Letters
b. Market research data
c. Price list
d. Other important tables