NOAKHALI SCIENCE & TECHNOLOGY UNIVERSITY

Department of Business Administration

Course Title: Entrepreneurship Development

Course Code: BBA- 3207

Assignment On: Entrepreneurship Development (1)

Submitted To
Dr.S.M.Mahbubur Rahman
Associate Professor
Department of Business Administration
Noakhali Science & Technology University

Submitted By
Rubyat Sharmin

Roll: MUH1810008F
Year: 03, Term: 02
Session: 2017-18

Date of Submission: 03-11-2021

 Assignment 01:
As an entrepreneur I have to make a business plan and discuss about
different part of business plan according to my business plan.

What Is a Business Plan?

A business plan is a written document that describes in detail how a

business—usually a startup—defines its objectives and how it is to go
about achieving its goals. A business plan lays out a written roadmap for
the firm from marketing, financial, and operational stand points.

• A business plan is a written document describing a company's core

business activities, objectives, and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and
attract outside investors.
• Businesses may come up with a lengthier traditional business plan or
a shorter lean startup business plan.
• Good business plans should include an executive summary, products
and services, marketing strategy and analysis, financial planning, and
a budget.

Purposes of a Business Plan:

A business plan can serve many different purposes—some internal, others

external. As we discussed previously, you can use a business plan as an
internal early planning device, an extension of a napkin sketch, and as a
follow-up to one of the canvas tools.

A business plan can be an organizational roadmap, that is, an internal

planning tool and working plan that you can apply to your business in order
to reach your desired goals over the course of several years. The business
plan should be written by the owners of the venture, since it forces a
firsthand examination of the business operations and allows them to focus
on areas that need improvement.

A major external purpose for the business plan is as an investment tool that
outlines financial projections, becoming a document designed to attract
investors. In many instances, a business plan can complement a formal
investor’s pitch. In this context, the business plan is a presentation plan,
intended for an outside audience that may or may not be familiar with your
industry, your business, and your competitors.

Understanding Business Plans:

Operating without a business plan is not usually a good idea. In fact, very
few companies are able to last very long without one. There are definitely
more benefits to creating and sticking to a good business plan—including
being able to think through ideas without putting too much money into them
and, ultimately, losing in the end.

A respectable business plan should outline all the projected costs and
possible pitfalls of each decision a company makes. Business plans, even
among competitors in the same industry, are rarely identical. But they all
tend to have the same basic elements, including an executive summary of
the business and a detailed description of the business, its services, and its
products. It also states how the business intends to achieve its goals.

Why Use a Business Plan?

Owing to the following benefits of a well-researched and comprehensive
business plan, preparing one is highly recommended, but not a mandate.

1. Feasibility
Entrepreneurs use a business plan to understand the feasibility of a
particular idea. It is important to contextualize the worth of the
proposed product or service in the current market before committing
resources such as time and money. It helps to expand the otherwise limited
view of a passionate innovator-turned-entrepreneur.

2. Focusing device
Formulating a concrete plan of action enables an organized manner of
conducting business and reduces the possibility of losses due to
uncalculated risks. Business plans act as reference tools for management
and employees as they solidify the flow of communication, authority, and
task allocation.

3. Foresight
The process of preparing a business plan often creates many unintended
yet desired results. It functions on the principle of foresight as it helps one
realize future hurdles and challenges that aren’t explicit. It also brings a
variety of perspectives on the forefront, eventually leading to a more
comprehensive future plan of action.

4. Raising capital
A business plan is an effective way of communicating with potential
investors, and the level of expertise and time used in preparing a business
plan also gives professional credibility to entrepreneurs. It analyzes and
predicts the chances of success for the investor and helps to raise capital.

Three primary parts of my business plan:

The first is the business concept, where you discuss the industry, my business
structure, my particular product or service, and how I plan to make your business a
success.

The second is the marketplace section, in which I describe and analyze potential
customers: who and where they are, what makes them buy and so on. Here, I also
describe the competition and how I'll position yourself to beat it.
Finally, the financial section, contains my income and cash flow statement, balance
sheet and other financial ratios, such as break-even analyses. This part may require
help from my accountant and a good spreadsheet software program.

Flouting these three key units down even additional, My business plan
consists of some components:

Executive summary
The executive summary is the first and one of the most critical parts of a
business plan. This summary provides an overview of the business plan as
a whole and highlights what the business plan will cover. It's often best to
write the executive summary last so that I have a complete understanding
of my plan and can effectively summarize it.

A good executive summary is compelling. It reveals the company’s mission

statement, along with a short description of its products and services. It
might also be a good idea to briefly explain why I’m starting my company
and include details about your experience in the industry that I’m entering.

• Business concept describes the business, its product, the market it

serves and the business' competitive advantage.
• Financial features include financial highlights, such as sales and
profits.
• Financial requirements state how much capital is needed for startup
or expansion, how it will be used and what collateral is available.
• Current business position furnishes relevant information about the
company, its legal form of operation, when it was founded, the
principal owners and key personnel.
• Major achievements points out anything noteworthy, such as patents,
prototypes, important contracts regarding product development, or
results from test marketing that have been conducted.
Company Description
A company description includes key information about my business, goals
and the target customers that I want to serve. This is where I explain why
my company stands out from other competitors in the industry and break
down its strengths, including how it offers solutions for customers, and the
competitive advantages that will give my business an edge to succeed.

Market Analysis
A thorough market analysis will help me define my prospects as well as
help me establish pricing, distribution, and promotional strategies that will
allow my company to be successful vis-à-vis my competition, both in the
short and long term.

Beginning my market analysis by defining the market in terms of size,

demographics, structure, growth prospects, trends, and sales potential.
Next, determine how often my product or service will be purchased by my
target market. Then figure out the potential annual purchase.

• Cost-plus pricing is used mainly by manufacturers to assure that all

costs, both fixed and variable, are covered and the desired profit
percentage is attained.

• Demand pricing is used by companies that sell their products through

a variety of sources at differing prices based on demand.

• Competitive pricing is used by companies that are entering a market

where there's already an established price and it's difficult to
differentiate one product from another.
 • Markup pricing is used mainly by retailers and is calculated by adding
your desired profit to the cost of the product.

Competitive Analysis
A good business plan will present a clear comparison of my business vs my
direct and indirect competitors. This is where I prove my knowledge of the
industry by breaking down their strengths and weaknesses. And if there are
any issues that could prevent me from jumping into the market, like high
upfront costs, this is where I will need to be forthcoming.

This section should also include any advantages my competition has in the
marketplace and how I plan to set my company apart. I should also cover what
makes my business different than other companies in the industry, as well as
any potential issues I may face when entering the marketplace if applicable.
Sales Strategy
This section should answer how I will sell the products that I am building or
carry out the services that I intend to offer. My sales strategy must be
specific. Break down how many sales reps I will need to hire and how i will
recruit them and bring them on board. Make sure to include my sales
targets as well.

Description of Management and Organization

My business must also outline how my organization is set up. Introducing
my company managers here and summarize their skills and primary job
responsibilities. An effective way could be to create a diagram that maps
out my chain of command.

My business will operate as a partnership, a sole proprietorship or a

business with a different ownership structure. If I have a board of directors,
I’ll need to identify the members.

Products and services description

Using this section to further expand on the details of the products and
services my company offers that I covered in the administrative summary.
Include all relevant information about my products and services such as
how I will manufacture them, how long they will last, what needs they will
meet and how much it will cost to create them.

Marketing Plan
This is where my describe how I intend to get my products and services in
front of my target customers. Break down here the steps that I will take to
promote my products and the budget that I will need to implement my
strategies.

• Where my target market is geographically located

• The primary pain points experienced by your target customers
• The most prominent needs of my target market and how my products
or services can meet these needs
• The demographics of my target audience
• Where my target market spends most of their time, such as particular
social media platforms and physical locations

Operating plan
This part of my business plan should describe how I plan to run my
company. Include information regarding how and where my company will
operate, how many employees it will have and all other pertinent details
related to my organization's operations.

Financial Projections

This final section breaks down the financial goals and expectations that I’ve
set based on market research. I’ll report your anticipated revenue for the
first 12 months and my annual projected earnings for the second, third,
fourth and fifth years of business.

If I’m trying to apply for a personal plan or a small business loan, I can
always add an appendix or another section that provides additional
financial or background information. A table will clear the matter out:
Exhibits and appendices

The final section of my business plan should include any extra information
to further support the details outlined in my plan. I can also include exhibits
and appendices to support the viability of my business plan and give
investors a clear understanding of the research that backs my plan.
Common information to put in this section includes:

• Resumes of company management and other stakeholders

• Marketing research
• Permits
• Proposed or current marketing materials
 • Relevant legal documentation
• Pictures of my product
• Financial documents

Finding the Right Plan:

Business plans tend to have a lot of elements in common, like cash flow
projections and marketing plans. And many of them share certain
objectives as well, such as raising money or persuading a partner to join
the firm. But business plans are not all the same any more than all
businesses are.

I would choose these three plans for the purpose of my business:

The Working Plan: A working plan is a tool to be used to operate my

business. It has to be long on detail but may be short on presentation.
I can probably afford a somewhat higher degree of candor and
informality when preparing a working plan.

A plan intended strictly for internal use may also omit some elements that
would be important in one aimed at someone outside the firm. I probably
don't need to include an appendix with resumes of key executives, for
example. Nor would a working plan especially benefit from, say, product
photos.

Fit and finish are liable to be quite different in a working plan. It's not
essential that a working plan be printed on high-quality paper and enclosed
in a fancy binder. An old three-ring binder with "Plan" scrawled across it
with a felt-tip marker will serve quite well.

Internal consistency of facts and figures is just as crucial with a working

plan as with one aimed at outsiders. I don't have to be as careful, however,
about such things as typos in the text, perfectly conforming to business
style, being consistent with date formats and so on. This document is like
an old pair of khakis I wear into the office on Saturdays or that one ancient
delivery truck that never seems to break down. It's there to be used, not
admired.

The Presentation Plan: If I take a working plan, with its low stress on
cosmetics and impression, and twist the knob to boost the amount of
attention paid to its looks, i'll wind up with a presentation plan. This
plan is suitable for showing to bankers, investors and others outside
the company.

Almost all the information in a presentation plan is going to be the same as

my working plan, although it may be styled somewhat differently. For
instance, I should use standard business vocabulary, omitting the informal
jargon, slang and shorthand that's so useful in the workplace and is
appropriate in a working plan. Remember, these readers won't be familiar
with my operation. Unlike the working plan, this plan isn't being used as a
reminder but as an introduction.

The Electronic Plan: The majority of business plans are composed on a

computer of some kind, then printed out and presented in hard copy. But
more and more business information that once was transferred between
parties only on paper is now sent electronically. So, I may find it appropriate
to have an electronic version of my plan available. An electronic plan can be
handy for presentations to a group using a computer-driven overhead
projector, for example, or for satisfying the demands of a discriminating
investor who wants to be able to delve deeply into the underpinnings of
complex spreadsheets.

The End!!