PLANNING TO SUCCEED

BUSINESS PLANNING, LIKE A BOSS!

TEJAS SHYAM
 WHY WE NEED A DETAILED PLAN

Clarify Purpose • What is the business about? Who is your ideal customer?
• How will you operate?

Future Vision • Setting long-term goals

• Accommodating for changes

Pitching for Funds • Investors need to gauge whether there is a potential to make profit
• Facts, figures and details are more appealing to serious investors

Team Building • Well designed plans attract collaborators and employees

Defines Structures • Details the organizational structure including titles

• Acts as a reference tool to check for target achievement

Other Uses • Aids in alliance formation

• Develops confidence in all stakeholders involved
PERSPECTIVES TO CONSIDER

• The depth and detail of the plan

Entrepreneur depend on the size and scope of
the venture

• Size of market, competition and

potential growth also affect the
Market Investor plan

THE SWEET SPOT

 SOME TIPS BEFORE YOU BEGIN

 Keep it crisp

 Tell a compelling story

 Excite the reader

 Make it in a professional manner

 Presentation, presentation, presentation!

 Focus on quality, not just quantity

 PRELIMINARY INVESTIGATION

 Review available documentation

 Consolidate and analyze all data
 Make key assumptions
 Do a SWOT analysis
 Seek required advice
 BUSINESS PLANNING PROCESS

Idea Generation

Environment Scanning

Feasibility Analysis

Drawing Functional Plans

 ENVIRONMENT SCANNING

ECONOMY

GOVERNMENT

LEGAL

TECHNOLOGY

DEMOGRAPHIC

CULTURAL

SUPPLIERS

SERVICE PROVIDERS

STAKEHOLDERS
 FEASIBILITY ANALYSIS

Technical/ Financial Feasibility

Market Analysis
Operational Analysis Check
• Estimate demand • Cost of technology • Cost of land and
• Estimate market • Material availability building
share • Material • Cost of plant and
• Analyze consumption requirements machinery
patterns planning • Preliminary cost
• Check for substitutes • Plant/office location estimates
• Focus on competition • Plant capacity • Contingency
• Discuss with • Equipment needed provisions
consumers, retailers, • Other technical • Working capital
distributors details estimates
• Understand • Production costs
consumer • Sales and production
preferences estimates
• Profit projections
 COMPONENTS OF AN IDEAL B-PLAN

A] THE TITLE / COVER PAGE

 This must include the following:
i) Name of Organization
ii) Period of time covered by the plan
iii) Date of plan
iv) Contact person name and details

 An additional ‘Table of Contents’ is a good idea

 COMPONENTS OF AN IDEAL B-PLAN

B] EXECUTIVE SUMMARY
 It is the carrot that keeps stakeholders reading on
 Make it crisp and concise
 Use it to summarize all key sections of the plan
 The Executive Summary must contain:
i) Purpose and concept of the organization
ii) Description of services offered and potential customers
iii) Short and long term objectives and how they are to be
achieved
iv) Business targets
v) Financial forecasts
vi) Required funds, their utilization and repayment
 COMPONENTS OF AN IDEAL B-PLAN

C] GENERAL INFO ABOUT THE BUSINESS

 The name of the business, its address and contact
number
 Start-up date
 Legal status of operation
 Ownership details
 Details of key staff members
 Location of business and area of operation
 Mission statement
 Market domain (and partnerships, if any)
 Trends in the industry
 Perceived future trends in demand
 COMPONENTS OF AN IDEAL B-PLAN

D] MARKETING PLAN
PRODUCT PRICE
 Describes the industry of
operation and market strategy
MUST
COVER
HOW MUCH IS TO BE SOLD
PROMOTION PLACE
WHO ARE THE CUSTOMERS

HOW WILL THE SERVICES BE PRICED

HOW TO PROMOTE AND DELIVER THE SERVICES

 Wherever forecasts need to be made, consider OPTIMISTIC,

PESSIMISTIC and MOST LIKELY scenarios
 COMPONENTS OF AN IDEAL B-PLAN

The Marketing Plan

must include:
Evidence Implications Implications Competitive Basis for Geographic Most
that the of change, of legal and advantage or pricing locations in suitable
organization new political niche of the based on which the service
knows about technologies, constraints particular costs, promotion delivery
the market, new on delivery service competition and mechanisms
economy and products and or distribution and ways of
competition abilities of affordability will be delivering
customers to of customers focused after-sales
afford the service
service
 COMPONENTS OF AN IDEAL B-PLAN

E] OPERATIONAL PLAN

How to provide Where to buy How to deliver

service supplies from service/product

Land, buildings, How to access

What after-sales
facilities and management,
service may be
equipment needed skilled and
needed
and their cost unskilled labour

Production
Location of
capacity and Operational
business and its
turnover rates contingency plans
rationale
achievable
 COMPONENTS OF AN IDEAL B-PLAN

F] HUMAN RESOURCE PLAN It is always a great idea to

Key persons, detail how the management
their credentials
and intends to steer the company
competencies
using their experience
Organizational
HR policies chart and role
delegation If there are any external
advisors, put in their details

Indicate policies regarding

Weakness in
board meetings if possible.
Compensation
and incentive
team and
mitigation
This creates a good
plans
strategy impression since it shows
intent towards monitoring
Training, and streamlining
Recruiting and
Hiring strategies
 COMPONENTS OF AN IDEAL B-PLAN

G] FINANCIAL PLAN

The most critical part of the plan! All other

parts of the plan are revalidated when we
assign numbers. Any gaps, discrepancies and
exaggerated assumptions should ideally get
flagged and corrected during this process.

This also helps investors to understand the

need and use of funds
 COMPONENTS OF AN IDEAL B-PLAN

FINANCIAL
PLAN

Capital Sales
Income Cash Flow Financing
Balance Sheet and
Statement Summary Schedule
Purchases

It is usually a good idea to also put in the Breakeven Analysis, Current Ratio,
Profitability Ratio and ROI
A LITTLE FINANCIAL GYAAN
 COMPONENTS OF AN IDEAL B-PLAN

H] APPENDIX

 This is usually an optional section, but includes

supporting documentation like permits, resumes of
management, etc.
 AND NOW…
IT’S TIME FOR SOME PRACTICAL ACTION!