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The Business Plan

ENTREPRENEURSHIP
SESSION 5

WHAT IS IT ?

The Biz plan is a written document prepared by the entrepreneur that describes all the relevant internal and external elements involved in starting a new venture

WHAT DOES IT INCLUDE

The Biz plan includes various functional plans like;


Marketing Finance

Manufacturing
Human

resource

THE QUESTIONS THAT NEED TO BE ANSWERED

It is a game plan or a road map and should answer the following questions ..
Where

am I now Where am I going How will I get there?

WHO IS INTERESTED IN THE PLAN .


Potential
Suppliers Customers

investors

Government

WHO SHOULD MAKE THE PLAN ..

YOU of course
But

in consultation with

Lawyers Accountants

Consultants
Engineers

etc. etc.

THE ACTUAL PLAN

Introductory Page
Name,

address of company. The name and contact information of the entrepreneur. Company and business description briefly. Amount of financing needed.
Can

include a package deal offered by the entrepreneur such as stock options.

Statement

of confidentiality.

THE ACTUAL PLAN

Executive Summary
This

will be of 3-4 pages in length and should stimulate the interest of the potential investor. It includes
The

business concept or model. How this business concept is unique? Who are the individuals starting this business. Their prior experience and expertise? How will they make money and how much? The exit strategy.

THE ACTUAL PLAN

The industry analysis


This

is an assessment of external uncontrollable variables that may impact the business plan. Key points
Economy

(inflation GDP etc) Culture (baluchistan) Technology (cell phones) Legal concerns (Iso certificatons)

THE ACTUAL PLAN

Description of Venture

Provides complete overview of the services and operations of new venture.

product(s),

Mission statement Reasons for the venture Why will you be successful in the venture? What development work has been completed to date? What are your products/services? Where is your office? Is the building new/old? Renovations needed? And costs involved. Building leased or owned. Terms of lease. Why this premises? Office equipment needed? Purchased or leased? Experience that will help you in successful implementation of the business.

THE ACTUAL PLAN

Production Plan

Details how product/services will be manufactured or provided.


Manufacturing supervisor Subcontractors if any Basis of selection of the above Costs of subcontract Layout of the production process Raw materials and Equipment needed Suppliers Total costs Future capital requirements.

THE ACTUAL PLAN

Organizational plan
Describes
Form

form of ownership and lines of authority and responsibility of members.


of organization? Partnership/incorporated etc. Share/stake distribution Board members Check signing authority Management team-roles/responsibilities Salaries/bonuses etc.

THE ACTUAL PLAN

Assessment of Risk
This

part identifies potential risks/hazards and alternative strategies to meet business plan goals and objectives.

THE ACTUAL PLAN

Marketing Plan
Describes

market conditions and strategy related to how products and services will be distributed, priced and promoted.
of key financial data that determine economic feasibility and necessary financial investment commitments

Financial Plan
Projections

THE ACTUAL PLAN

Measuring parameters.
Inventory

control Production control Quality control Sales control Disbursement control Cash/liquidity control Benchmarks/milestones

WHY BUSINESS PLANS FAIL


Unreasonable goals Goals not measured Lack of total Commitment. No experience No sense of potential threats and weaknesses Customer needs not established