Business Plan

<name of the project>

1.0 General Information
1. Name of the firm:
2. Project: <the project name for which business plan is made>
3. Location:
4. Type of organization: <proprietor/partnership/ltd company>
5. Address:
6. Contact:
7. Name of Promoter/s:
1.1 Education of the promoter
1.2 Special Training
1.3 Work Experience
1.2 (i) Promoter’s Annual Income
(ii) Assets owned Movable + immovable
2.0 Company Profile
• Vision
• Mission
• Background of company
• Current status of company
• Current products and services
3.0 Product Description
• 3.1 Product Specification: Characteristics, manufactured/service ,
trademark/copyrights/patents involved
• 3.2 Unique Selling Proposition: details about characteristics of the
product that will make it stand out of other products in the market.
• 3.3 Quality Assurance: Any quality standards required such as
Agmark, Hallmark, ISO
4.0 Marketing Plan
4.1 Present demand & supply
4.2 Direct competitors
4.3 Target clients/selected market area
4.4 Marketing Strategy: details about pricing, distribution, promotion,
sales, advertising of the product, USP
( this plan should be comprehensive and detailed)
5.0 Operational Plan
5.1 Technical knowhow: type of machines to be used, availability
5.2 Step by step description of the manufacturing plan
5.3 Flowchart of the production process
5.4 No. of working days per annum
5.5 No of working shifts in hours
5.6 Sales Revenue
Year Item Quantity sold Price per unit Sales
realization(Rs)
6.0 Human Resource Plan
6.1 No of skilled labour
6.2 No of Semi-skilled labour
6.3 No of unskilled labour
6.4 Flowchart of organizational Hierarchy
7.0 Financial Plan
7.1 Land & building: area of land/building required, total value of land,
building specifications etc.
7.2 Machinery/equipment: type of machinery, number of machinery,
cost of machinery, total value of all
7.3 Any other fixed asset: no., cost, total value
7.4 Variable cost: total value of raw material, intermediate goods, cost
of labour,
7.5 Operative expenses: value of startup expenses, cost of electricity,
phone/ internet connection, power, fuels etc.
7.6 means of finance: Amount of owned funds, term loan, any other
source
8.0 Profitability Projection Chart
  All Values in INR Cr.                  
    Year Ended Year on Year (YOY) growth %

Particulars Year 1 year 2 Year 3 year 4 year 5 year 2 Year 3 year 4 year 5
 
                     
1 INCOME                  
  Sales realisation 20.00 30.00 40.00 50.00 60.00 50% 33% 25% 20%
                     
2 FIXED COST 40.00 40.00 40.00 40.00 40.00        
                     
3 EXPENSES                  
  a)Cost of raw materials consumed 9.00 13.50 18.00 22.50 27.00 50% 33% 25% 20%
  b)Employee salary 1.00 1.50 2.00 2.50 3.60 50% 33% 25% 44%
  c) Cost of utilities 0.40 0.60 0.80 1.00 1.20 50% 33% 25% 20%
  d) Administrative expenses 0.40 0.60 0.80 1.00 1.20 50% 33% 25% 20%
  e)Advertising and promotion 2.00 3.00 4.00 5.00 6.00 50% 33% 25% 20%
  f) Rent 0.40 0.60 0.80 1.00 1.20 50% 33% 25% 20%
  g)Depreciation and amortisation expenses 4.00 4.00 4.00 4.00 4.00 0% 0% 0% 0%
  h) Miscellaneous 0.40 0.60 0.80 1.00 1.20 50% 33% 25% 20%
                     
  TOTAL EXPENSES (a+b+c+d+e+f+g+h) 17.60 24.40 31.20 38.00 45.40 39% 28% 22% 19%
                     
4 GROSS PROFIT (1-3) 2.40 5.60 8.80 12.00 14.60 133% 57% 36% 22%
                     
5 TAXES                  
  a) Current Taxes 3.05 4.58 6.10 7.63 9.15 50% 33% 25% 20%
                     
                     
6 NET PROFIT (4-5) -0.65 1.02 2.70 4.37 5.45 -257% 164% 62% 25%

Volume Projection is based on No. Of Units sold in 1 year * Avg. Cost of each unit
Cost is projected based on various assumtions and market feedback
9.0 Contingency plan

Details of various types of methods to be used for risk reduction or

mechanisms to be used in case of losses.

Option 1 - IPO –company can float its shares

Option 2 – Selling Private equity at partial and full stake
Option 3 – in case of continuous losses it may lead to closure of
business