Business Plan

Preparation

UNIT - 3
 Introduction
A Business plan is a written
summary of what you hope to achieve
/ to attain by being in business & how
you intent to organize your resources
to meet your goals.
It is a Blue print of a Business
To become successful in business
the following are to be considered
• What business am I In
• What do I sell
• Where is my market
• Who will buy my product
• Who is my competitor
• What is my promotion strategy
• How much money is needed to operate my firm
• How will I get the work done
• What management controls are needed
• How can they be carried out
• Where will the business being 12 months from now
• When should I revise my plan
• Where can I go for the help
 Business plan – 35 steps
The following 35 steps are important to
prepare a perfect business plan. It is very
practical approach to the planning process.

Phase:1 : Introduction:
1.Summary
2.Introduction to the business plan
Phase : 2 : Data Collection and Analysis
3. General Description of the industry
4. Description about the firm
5. Description about the product & Services
6. Market area, market size & features about
the market
7. Customers and their demographic details
8. Competition
Phase : 3 : Strategy Formulation:
9. Overall marketing strategy
10. Location of the industry
11. Advertising
12. Pricing
13. Method of selling and distribution
14. Servicing, warranty period & packaging
etc
15. Sales & credit terms
16. Other marketing strategy elements
17. Description of premises and facilities
18. Production methods & equipments
19. Materials & sources of supply
20. Key personnel
21 Compensation and ownership
22. Staffing
23 supporting professional bodies
24.Management assistance & staff learning
25. Long range plans
26. Handling the critical risks
Phase:4: Forecasting the results
27. Estimated market value
28. Sales forecast
29. Determining cash requirements
30. Profit & loss statement
31. Cash flow statement
32 Balance sheet
• 33 Break even analysis
• 34 Ratio analysis
• 35 Systematic projection of sales / profit
Project Management
Project management is a crucial activity
involving financial strategies of the
business and all the administrative
guidelines.
An Ideal project is one which is
carefully, selected or prepared thoroughly
appraise / analyze, closely monitored /
systematically evaluated.
Phases in the Project Mgt.
• Project Identification: : Selection of a right
business based on the investment & return
• Project Formulation: It is the translation of the
idea into a concrete project. It involves the
feasibility.
• Project appraisal: It speaks about the
searching, evaluating about eh market ,
technical know-how, economic variables etc
• Project selection: The rational choice with
regard to business success.
• Project implementation: It involves a complete
execution of the method and process of the
Project
• Project Management: It is the operation of the
project with objectives of maximization of
return & increasing the rate of return with low
risk.
 Checklist of feasibility study
1. Examination of Govt. policy with respect to the
industry
2. Broad specifications of techniques of production
3. Listing the alternative locations
4. Preliminary estimates of revenue from sales
5. Preliminary study about the profit from other
alternatives
6. Raw materials investigation
 Checklist of feasibility study
7. Listing the ancillary units if it is necessary.
8. Buildings , structure type, size of the building etc
9. Specifications of transportation and its cost , then water
supply, power etc.
10. Specifications of labour requirements & its cost
11. Phasing the activities
12.Listing the environmental guidelines / Rules / etc
13. Analyzing the past performance about the same
business run by others
 Women Entrepreneurs
According to the ILO “ women
are half of the world population, do
the 2/3rd of the world work hours;
receive only 10% of the world
income and own less than 1% of the
world property”.
Definition – Women entrepreneur

Women entrepreneurs may

be defined as ‘the women or
a group of women who
initiate, organise and operate
a business or enterprise.”
Problems faced by the women entrepreneurs

• Shortage of Finance & financial support

• The regularity and shortage of raw materials
• Family responsibilities
• Social attitude towards women
• Low ability in facing the risk
• Lack of family support – husband / parents