INTRODUCTION OF A

BUSINESS PLAN IN
ENTREPRENEURSHIP
OBJECTIVES:
1. Define business plan.
2. Understand the importance of business
plan.
3. Identify the master of the business
plan.
 INTRODUCTION TO BUSINESS PLAN
PREPARATION
It is a detailed and integrated written
document that describes the various
activities involved in opening and operating
a new entrepreneurial venture. It is also a
road map that provides directions so as a
business can plan its future and helps it
avoid bumps in the road.
 INTRODUCTION TO BUSINESS PLAN
PREPARATION

It is the only single written document

that must be prepared before opening
a new business or expanding an existing
business. It provides a clear direction
to any uncertain business endeavour.
 BUSINESS PLAN
It also designed to outline individual
responsibilities of the entrepreneur and his
(future) employees, project the enterprise’s
sales, expenses and cash flows, explain to
employees what is expected of them,
improve overall company performance, assist
managers in decision making, plan for a new
products and/or innovated products, and
possibly raise capital for one’s business.
 BUSINESS PLAN
Different business plans are prepared
for different purposes. There are business
plans written prior to setting up an
enterprise, which are similar to a
feasibility study and a viability study.
Many new enterprises need to convince
prospective business investors about the
soundness and potential of their business.
 BUSINESS PLAN
They need to convey the
capabilities and competencies of their
owners and managers. They must also
be able to ‘sell’ the proponent and
the business proposition to this
audience. These are situations when a
good business plan is needed.
 BUSINESS PLAN
The entrepreneur’s business plan is not
merely supposed to be a document made
and shelved. It is the entrepreneur’s bible.
This means that it should be the source
document which the entrepreneur would
like to use and work on a regular (i.e.,
monthly, weekly or even on a daily basis).
 A business plan serves many
masters:
1. It serves the entrepreneur who
must set a navigational
course.
2. It serves investors and
cautious financiers.
3. It serves the managers and
staff of the organization so that
they will know the strategies and
programs of the enterprise.
 10 REASONS WHY YOU NEED TO PREPARE A
BUSINESS PLAN FOR SMALL BUSINESS
1. To help you with critical decisions
2. To iron out the kink

3. To avoid the big mistakes

4. To prove the viability of the business

5. To set better objectives and benchmarks
 10 REASONS WHY YOU NEED TO PREPARE A
BUSINESS PLAN FOR SMALL BUSINESS
6. To communicate objectives and
benchmarks
7. To provide a guide for service providers
8. To secure financing
9. To better understand the broader
landscape
10. To reduce risk

The business plan must have a
specific audience in mind and
what important questions do this
audience want answered.
THANK YOU
FOR
LISTENING!