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Definition
• A Business Plan (BP) can be defined as a
document that describes an organization's
current status and forecasts / plans for the
growth in the times ahead.
• This can be from a quarter of an year to
several years in the future.

marketing consultants and engineers. accountants. . with purpose about a new venture to a potential investor. • Business plan could take more than 200 hrs to prepare but varies from person to person according to their knowledge and experience.Introduction • The business plan is written document prepared by the entrepreneur that describes all the relevant external and internal involved in starting a venture. Entrepreneur should consult with many other sources in its preparation like lawyers.

.A“Business Plan” is nothing but a :>“Selling Document” that conveys the excitement and promise of your business to any potential backers and stakeholders .

Why ???? • The reason for compiling a business plan will be different for each situation: • • If you are starting a new business you will require a plan to clearly assess every aspect of the business and show how it will succeed. Also helps to obtain capital for the venture. • • If you are buying an already established business you will need to identify the strengths and weaknesses of the business to decide if you .

Reasons for Writing a Business Plan  To sell yourself on the business To obtain bank financing To obtain investment funds To establish strategic alliances To obtain initial contracts To attract key employees To assist in the completion of mergers and acquisitions  To motivate and focus your management team       .

  Market Segmentation. .   Analysis of competitors.CONTENTS OF A BUSINESS PLAN INTRODUCTORY PAGE  Name and address of business.  Statement of confidentiality of report. INDUSTRY ANALYSIS Future outlook and trends.  Statement of financing method.  Nature of business. EXECUTIVE SUMMARY  Three to four pages summarizing the complete business Plan.     Name(s) and address (es) of principals. Industry forecasts.

Product forecasts. Promotion. Background of entrepreneurs. Distribution. Manufacturing process (amount subcontracted) Physical Plant. Office equipment and personnel. Names of Suppliers of raw materials. . Pricing. Controls.DESCRIPTION OF VENTURE PRODUCTION PLAN MARKETING PLAN Product(s)  Service(s) Size of business. Machinery and Equipment.

Authority of principals. ASSESSMENT OF RISK Evaluate weakness of business. Contingency Plans. Identification of partners or principal shareholders. Sources and application of funds. . Proforma balance sheet Break-Even analysis. New technologies.ORGANIZATIONAL PLAN Form of ownership. FINANCIAL PLAN Proforma income statement. Management.  Cash Flow Projections. Roles and responsibilities of members of organization.team background.

APPENDIX (contains backup material) •  • Letters. • Market Research Data. . • Price lists from suppliers. • Leases or contracts.

How do you WRITE ??? .

• It should be comprehensive enough to give any potential investor a complete picture and understanding of the new venture and will help the entrepreneur clarify his or her thinking about the business. the entrepreneur will realize that it is invaluable in sorting out the business functions of a new venture. however. . depending on the experience and knowledge of the entrepreneur as well as the purpose it is intended to serve. Each of the items in the contents of the business plan is explained in detail as follows. Once the process has begun. • Many entrepreneurs incorrectly estimate the length of time that an effective plan will take to prepare.• The business plan can take more than 200 hours to prepare.

A statement of the confidentiality of the report. Name of the entrepreneur(s) and telephone number. . Description about the company and also stating nature of business.INTRODUCTORY PAGE: • This is the title page or cover that provides a brief summary of • • • • • the venture and should include the following things: Name and address of the company. Stating their financial requirements.

EXECUTIVE SUMMARY: • This is prepared after total plan is written. this summary should stimulate the interest of the potential investor. financing needed. This about 3 to 4pages in length. market potential. • This highlight concise and convincing manner the key point in the business plan stating the nature of the venture. . and supports to why it will succeed.

INDUSTRIAL ANALYSIS: • This reviews industry trends and competitive strategies. insight of new product developments in this industry. with appropriate strengths and weakness described and how will it affect the new ventures potential success in the market. including future trends and historical achievements. The industry outlook. . • Competitor should be identified.

leased or owned. or trademark status.DESCRIPTION OF VENTURE: • It states the product produced by venture which includes patent. stating their . • In description of venture the type of office equipment will be required whether it will be purchased or leased. copyright. He (entrepreneur) should also look at the management experience. It also gives a brief idea where the business will be located including the construction of building.

• If the manufacturing is to be carried out in whole or in part by the entrepreneur.PRODUCTION PLAN: • This includes details of manufacturing process a product. he or she will need to describe to physical plan layout: the machinery and equipment needed to perform the manufacturing operations: raw material and suppliers names. It should also include state subcontractors name and addresses. . raw material required for manufacturing. and the terms. addresses. costs of subcontracted manufacturing. which is very necessary. costs of manufacturing and any future capital equipment needs.

market planning has also become an annual activity and should be incorporated by all the entrepreneurs. especially in the early stages of start up. • Marketing planning should be an annual activity that focuses on implementing decisions related to the marketing mix variables (product. and promotion). .MARKETING PLAN:   • The marketing plan represents a significant element in the business plan for a new venture. regardless of the size or type of the business. These marketing plans must be monitored frequently. • Like the annual budgeting cycle. price. distribution.

ORGANIZATIONAL PLAN: • The organizational plan describes the venture form of ownership i.e. specimen signatures of the partners etc. term of agreement. names and address. . the term of partnership should be included. share options. name of partners. partnership or a corporation. If it is a corporation venture than it is important to detail the shares of the stock authorized. • If the venture is a partnership. whether it is proprietorship. resumes of the directors and officers of the corporation.

their roles and responsibilities stating their salaries.• If it is an incorporation venture than it should state the principal shareholders and shares owned by them. members of board of directors. check signing authority or control. This is also helpful to provide an organization chart indicating the line of authority and responsibilities of the members of the organization. bonuses or other forms of payment for each members of the management team. type and number of shares stating voting or non-voting stocks have been issued. . This information provides the potential investor with a clear understanding of who controls the organization and how other members will interact in performing their management functions. • The plan also states how many members are there in management team and their background.

given the particular industry and competitive environment. An entrepreneur should make assessment of risk and prepare an effective strategy to deal with them. the business plan should discuss why that is the case.ASSESSMENT OF RISK: • All ventures face some potential hazards. Contingency plans and strategies illustrate to the potential investor that the entrepreneur is sensitive to important risks and is prepared should any occur. • Even if these factors present no risks to the new venture. .

proforma cash flow. and proforma sources and uses of funds. break -even analysis. proforma balance sheet.FINANCIAL PLAN: • The financial plan should include proforma income statements. .

It should also include price lists from suppliers and competitors may be added. Any documentation of information that is secondary data or primary research data used to support plan decisions should also be included. Leases.APPENDIX: • It generally contains business plan generally back up material that is not necessary in the text of the document.contractors are examples of information that should be included in the appendix. • Letters from customers. Reference to any of the documents in the appendix should be made in the plan itself. . distributors or sub. contracts or any others types of agreement that have been initiated may also are included in the appendix.

A business plan is presented to a bank to obtain funds in the initial stage of a project. business plan is a stepping.stone for an entrepreneur in the commencement of a project.CONCLUSION • A business plan is a crucial component for an entrepreneur. . • It is a monetary rule that a business plan has to be presented to a bank before the release of funds by the financial institutions. Hence.

The Last Words Have a business plan that is simple to grab user / reader attention. The simple rules and information can make a killer BP to turn heads and maximize business.Conclusion……. ..