ENTREPRENEURSHIP

Course Code :8503  Unit # 04

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 OBJECTIVES
4- Business Planning Process
Planning Process
Story Model
Business Plan
Types of Business Plans and
its Components 2
- Business Planning Process:
Business plan is a written document prepared
by entrepreneur that describes all the relevant
external and internal elements involved in starting
new venture.
It is an integration of functional plans such as
marketing, finance , manufacturing and human
resource plan.
A business plan is a blue print of step by step
process that would be followed to convert
business idea into successful business venture.
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- Business Planning Process:
OBJECTIVE OR IMPORTANCE OF BUSINESS PLAN:
To give direction to the vision formulated by the
Entrepreneur
To objectively evaluate the prospectus of business
To monitor the progress after implementing business
Plan
To persuade others to join business
To seek loans from financial institutions
To visualize concept in terms of market availability,
organizational, operational, and financial feasibility
To guide entrepreneur in actual implementation of plan
To identify actual strength and weakness of plan
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- Business Planning Process:
OBJECTIVE OR IMPORTANCE OF BUSINESS
PLAN:
To identify challenges in terms of opportunities
and threats from the external markets.
To clarify ideas and identify gaps in management
information about their business, competitors and
market.
To identify the resources that would be required to
implement the plan
To document ownership arrangements, future
prospectus and projected growth of the business
venture.
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-Planning Process:

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 - Story Model:
 Let Your 'Story' Frame Your Business Plan
 Don't think of it as a formal document but as a
collection of stories, combined with concrete goals.
 Stories can contain as much or
more truth than pure "facts.“
 The power of the phrases sour
grapes, crying wolf, or the emperor's new clothes. 
 Favorite part of an investment pitch is where the
entrepreneur talks about how some ideal customer has
a problem and this new business solves it.
 Superfluous elements like
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mission and vision statements.
-Business Plan: Business plans are decision-making tools.
 A business plan is a written document that describes in
detail how a business, usually a new one, is going to
achieve its goals.
 A business plan lays out a written plan from a marketing,
financial and operational viewpoint
 Business plans are inherently strategic
and  shows how will get from here to there.
 Business plans may be internally or externally focused.
 Externally focused plans target goals that are important to
external stakeholders, particularly financial stakeholders.
 Internally focused business plans target intermediate goals
required to reach the external goals.
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Types of Business Plans and its Components:
 Might create, depending on business size and goals.
 Business plans guide owners, management and
investors as businesses start up and
grow through stages of success. 
 A business owner or prospective
business owner writes a business plan
to clarify each aspect of his
business.
 A business plan includes objectives to
anticipate and prepare for growth. 
 Types of business plans include, limited to, start-up,
9internal, strategic, feasibility, operations and growth
- Start-Up Business Plans:
Detail the steps to start a new business with
a start-up business plan.
Include sections describing the company,
the product or service your business will
supply, market evaluations and
your projected management team.
Provide a financial analysis with
spreadsheets describing financial
areas including, but not limited
to, income, profit and cash
flow projections.
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- Internal Business Plans:
 Internal business plans target an audience
within the business.
 Write an internal business plan
to evaluate a proposed project.
 Describe the company’s
current state, including
operational costs and profitability.
 Calculate if and how the business will
repay any capital needed for the project.
 Provide information about project
marketing, hiring and tech costs
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- Strategic Business Plans:
 A strategic business plan provides a detailed map of a
company’s goals and how it will achieve them, laying
out a foundational plan for the entire company.
 According to the website, Clean Washington Center, a
strategic business plan includes five elements:
business vision, mission statement, definition of
critical success factors, strategies for achieving
objectives and an implementation schedule
  A strategic business plan brings all levels of the
business into the big picture, inspiring employees to
work together to create a successful
culmination to the company’s goals.
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- Feasibility Business Plans:
 A feasibility business plan answers two primary
questions about a proposed business venture.
 According to the University of Colorado Leeds
School of Business, feasibility plans attempt to
determine who, if anyone, will purchase
the service or product a company wants
to sell, and if the venture can turn a
profit.
 Feasibility business plans include, but are not limited
to, sections describing the need for the product or
service, target demographics and required capital.
 A feasibility plan ends with
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--Operations Business Plans:
Operations plans are internal plans
that consist of elements related to
company operations.
An operations plan, specifies
implementation markers and
deadlines for the coming year.
The operations plan outlines
employees’ responsibilities.
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-Growth Business Plans:
Growth plans or expansion plans are in-depth
descriptions of proposed growth and are written for
internal or external purposes.
Company growth requires investment, a growth
plan may include complete descriptions of the
company, its management and officers.
The plan must provide all company details to satisfy
potential investors.
If a growth plan needs no capital, the authors may
forego obvious company descriptions, but will
include financial sales and expense projections.
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- Components of Business Plans:
 BP is a written document prepared by the
entrepreneur that describes all the relevant external
and internal elements involved in starting a new
venture.
 Useful for new venture or for the
expansion of the existing business.
 Of those who created plans,
64 percent grew their businesses,
compared to 43 percent of
companies that
hadn’t yet finished a plan.
 Those who created plans were more
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 - Components of Business Plans: 7 Elements of a Business Plan
It can also give a solid roadmap to help navigate the tricky waters.
The seven components you must have in your business plan include:

1) Executive Summary
2) Business Description
3) Market Analysis
4) Organization Management
5) Sales Strategies
6) Funding Requirements
7) Financial Projections

All of these elements can help you as you build your business, in
addition to showing lenders and potential backers that you have a
clear idea of what you are doing.

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All the best for Endeavors in Life
 All the best for a
SUCCESSFUL / BRIGHT
FUTURE