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    Business Plan

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    Ifaz Mohammed Islam 1921237030
    The document discusses what a business plan is and how to write an effective one. It explains that a business plan outlines all relevant internal and external elements of starting a new venture. It also describes the typical sections of a business plan like executive summary, operations, marketing, and financials. The document provides guidance on developing goals, researching the industry and competitors, and ensuring the plan remains useful over time.

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    Business Plan

    Uploaded by

    Ifaz Mohammed Islam 1921237030
    23 views32 pages
    The document discusses what a business plan is and how to write an effective one. It explains that a business plan outlines all relevant internal and external elements of starting a new venture. It also describes the typical sections of a business plan like executive summary, operations, marketing, and financials. The document provides guidance on developing goals, researching the industry and competitors, and ensuring the plan remains useful over time.

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    The document discusses what a business plan is and how to write an effective one. It explains that a business plan outlines all relevant internal and external elements of starting a new venture. It also describes the typical sections of a business plan like executive summary, operations, marketing, and financials. The document provides guidance on developing goals, researching the industry and competitors, and ensuring the plan remains useful over time.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    23 views32 pages

    Business Plan

    Uploaded by

    Ifaz Mohammed Islam 1921237030
    The document discusses what a business plan is and how to write an effective one. It explains that a business plan outlines all relevant internal and external elements of starting a new venture. It also describes the typical sections of a business plan like executive summary, operations, marketing, and financials. The document provides guidance on developing goals, researching the industry and competitors, and ensuring the plan remains useful over time.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 32

    Business Plan

    What is Business Plan?


    • The business plan is a written document
    prepared by the entrepreneur that describes
    all the relevant internal and external elements
    and strategies for starting a new venture.
    • It is a integration of functional plans such as
    marketing, finance, manufacturing, sales and
    human resources.
    Who should write the plan?
    • The business plan should be prepared by the
    entrepreneur.
    • The entrepreneur may consult with many
    other sources in its preparation, such as
    lawyers, accountants, marketing consultants,
    and engineers.
    Scope and Value of the Business Plan – Who
    Reads The Plans?
    • The business plan may be read by employees,
    investors, bankers, suppliers, customers,
    advisors, and consultants.
    • There are three perspectives should be
    considered in preparing the plan :
    – Perspective of the entrepreneur
    – Marketing perspective
    – Investor’s perspective
    Scope and Value …
    • The business plan is valuable to the
    entrepreneur, potential investors, or even new
    personnel, who are trying to familiarize
    themselves with the venture, it goals, and
    objectives.
    – It helps determine the viability of the
    venture in a designated market
    – It provides guidance to the entrepreneur in
    organizing his or her planning activities
    – It serves as an important tool in helping to
    obtain financing.
    How do Potential Lenders and Investors
    Evaluate The Plan?

    • Four Cs of Credit:
    – Characters
    – Cash flow
    – Collateral (Guarantee)
    – Equity of Contribution
    Presenting the plan
    • Entrepreneur present their business plan in a
    competitive and structured setting.
    • Present highlights of business plan in a
    defined time.
    • Entrepreneur must decide what to say and
    how to present information?
    • Benefits for this competition is in rewards or
    also in to attract the attention of the
    • Audience at this presentation usually include
    • Potential investors
    • Professional investors (venture capitalists,
    private investors)
    • Some investors describe these presentation as
    elevator pitches..
    Information needs
    • Information obtainable from many sources,
    should focus on marketing, finance and
    production.
    • Goals and objectives are defined for the
    business plan.
    • Internet is the valuable resource of
    information for entrepreneur.
    Market information
    • Market potential for the product or service
    • Size of market
    Is the product is purchased by both men and
    women?
    People of high and low income
    Rural and urban dwellers?
    Highly and less educated people?
    Operations Information needs
    • Location
    • Manufacturing operation
    • Raw material
    • Equipment
    • Labor skills
    • Space
    • Overhead
    Financial information needs
    • Preparation of budget (includes sales revenues
    expenditures)
    • Need identification of the benchmark for
    preparing pro forma statement in financial
    plan.
    Using the internet as a resource tool
    • Internet is the important source of information in the
    business plan for such segments like
    • Industry analysis
    • Competitor analysis
    • Planning
    • Marketing strategy
    • Use search engine that assist entrepreneur in writing
    business plan.
    Writing the business plan:
    Outline of a business plan:
    • Introductory Page
    • Executive Summary
    • Environmental and Industry Analysis
    • Description of Venture
    • Production Plan
    • Operational Plan
    • Marketing Plan
    • Organizational Plan
    • Assessment of Risk
    • Financial Plan
    • Appendix (contains backup material)
    Introductory Page
    – Name and address of business
    – Name and address of entrepreneur
    – Nature of business
    – Statement of financing needed
    – Statement of confidentially of report
    Executive Summary:
    – What is the business concept or model?
    – How is this business concept or model unique?
    – Who are the individuals starting this business?
    – How will they make money and how much?
    Environmental and Industry Analysis:
    – Future outlook and trends
    – Analysis of competitors
    – Market segmentation
    – Industry and market forecasts
    Description of Venture:
    – Product(s)
    – Service(s)
    – Size of business
    – Office equipment and personnel
    – Background of entrepreneurs
    Production plan
    • Details how the product will be manufactured
    – Manufacturing process
    – Physical plant
    – Machinery and equipment
    – Names of suppliers of raw materials
    • Operational Plan
    – Description of company’s operations
    – Flow of orders for goods and/or services
    – Technology utilization
    Marketing plan
    • Describes market conditions and strategy related to how
    the product services will be distributed, priced and
    produced
    • Organizational Plan
    – Form of ownership
    – Identification of partners or principal shareholders
    – Authority of principals
    – Management-team background
    – Roles and responsibilities of members of organization
    • Assessment of Risk:-Identifies potential
    hazards and alternatives strategies to meet
    business plan goals and objective
    • Financial plan:-Projections of key financial
    data determine economic fesibilty and
    necessary financial investment commitment
    Using and Implementing The Business Plan

    • The business plan is designed to guide the


    entrepreneur through the first year of
    operations.
    • Implementation of the strategy contain
    control point to ascertain progress
    • Business plan not end up in a drawer
    somewhere once the financing has been
    attained and the business launched.
    Updating the Plan.
    • The most effective business plan can become
    out-of-date if condition change.
    • If the change are likely to affect the business
    plan, the entrepreneur should determine what
    revisions are needed.
    • In this manner, the entrepreneur can maintain
    reasonable targets and goals and keep the
    new venture on a course that will increase
    probability of success.
    Why Some Business Plans Fails/pitfalls to avoid
    making business plan
    • Goals set by the entrepreneur are
    unreasonable.
    • Goals are not measurable
    • The entrepreneur has not made a total
    commitment to the business or to the family.
    • The entrepreneur has no experience in the
    planned business.
    • The entrepreneur has no sense of potential
    threats or weaknesses to the business.
    • No customer need was established for the
    proposed product or service.
    Causes for Failure
    • Product/Market Problems • Managerial Problems
    – Poor timing – Concept of a team approach
    – Product design problems – Human resource problems
    – Inappropriate distribution
    strategy
    – Unclear business definition
    – Overreliance on one customer
    • Financial Difficulties
    – Initial undercapitalization
    – Assuming debt too early
    – Venture capital relationship
    problems

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