Understanding the

Market
Done By: Manjima Manoj
BUSINESS PLANNING
Presentation made by Salwa Siddiqui
 01
IMPORTANCE
OF PLANNING
A business plan is important for an entrepreneur.
 A business plan is important for an entrepreneur. Some
of the reasons why a business plan should be prepared
are as follows:

Estimating money Estimating quantity of Standing out

required to be sent
Once the entrepreneur knows what
product to sell and whom to sell it to,
the next step is to estimate how much
money will be required to start the
business. Without an estimate of how
an entrepreneur decide the
much money is required, an
entrepreneur might invest too much
money, or may start the business
without enough money to run the
business.
material required:
A business plan also makes an
Knowing how much entrepreneur plan how they
material is required helps can make the customer
see the business as standing
cost of making each out uniquely when
product or cost of compared with competitors.
delivering the service.

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 Setting goals Standing out
A business plan also makes an
Another important reason entrepreneur plan how they
of having can make the customer
a plan is to set ambitious, see the business as standing
yet realistic goals. These out uniquely when
goals motivate the compared with competitors.
entrepreneur to work hard.

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 02
IMPROVING
& GROWING
BUSINESS
After starting the business, an entrepreneur has to think about how they can
continue to improve and grow by creating value for the customer.

QUALITY
• An entrepreneur can improve the
business by improving the quality of the
product or service which is offered to the
customer.
• This will help the business to stand out
in the market And as a result, will
justify the entrepreneur charging a
higher price.
• More inflow of money will help the
business to grow.
• For example, for a business
of candles, an entrepreneur can improve
on the quality by making scented candles
or candles in different colours or sizes.
PRINCIPLES
ADDING
SCALING UP
SUBSITUTES
• Scaling up means growing the
business by attracting more • Another way of growing
customers.
a business is by giving
• There are many ways a business
offers to customers.
can reach out to more and more • Substitutes mean products and
customers.
services which are similar to
• One such way is to go to a
what is already being sold.
different area where you will find • For
new customers.
example, selling candle stands along
• For example, selling candles in
with candles.
different housing
societies where a lot of people live
instead of
market where there is competition.
 QUESTIONAIREE
A. Subjective Questions

1. What is the meaning of business planning?

2. Why is business planning important?

3. How can an entrepreneur improve and grow a business?

State the principles.
 ANSWERS
1.
A. A business plan is a detailed plan of what an
entrepreneur wants to achieve through the business and
how it will be achieved.

B a. Estimating the money required to be spent – Once the entrepreneurs understand the product and the
customer, the next step is to estimate how much money will be required to start the business.

b. Estimating quantity of material required – After knowing the cost price of the manufactured product, the
entrepreneur first identifies the market price and then he/she has to decide the cost of selling each product.

c. Standing out – A business plan is important, an entrepreneur plan how they can make the customer see
the business as standing out uniquely when compared with competitors.

d. Setting goals – Another important reason for having a plan is to set ambitious, yet realistic goals. These
goals motivate the entrepreneur to work hard.
 ANSWERS
1.
C.
a. Quality – An entrepreneur might grow his or her business by improving the quality of
the product or service given to customers.

b. Scaling Up – Growing the business by recruiting new clients is what scaling up

includes. There are numerous ways for a business to reach out to an increasing number of
clients.

c. Adding Substitutes – Giving consumers special deals is another strategy to grow a

business. Substitutes are products and services that are identical to what is currently on the
market.