2. What is a Business Plan ?
A Business plan is a detailed document
that serves as the framework charting
the course for an enterprise to achieve
desired benchmarks and goals within a
pre-planned time frame .
3. Importance of a Business
Plan
A “Business Plan” is a “Selling
Document” that conveys the
excitement and promise of your
business to any potential backers and
stakeholders .
4. Objectives of a Business
Plan.
• To sell yourself on the business
• To obtain bank financing
• To obtain investment funds
• To establish strategic alliances
• To obtain initial contracts
• To attract key employees
• To assist in the completion of mergers and
acquisitions
• To motivate and focus your management
team
6. Types of Business Plans
Introduction Plan
• Plan at the time
of introducing a
business .
• Benchmarks
organization’s
Goals .
• It is the Basis for
future
organization
planning .
• Addresses Core
market issues .
• Aims at a strong
foundation .
Long Term Plan
• Usually for a
period of 10 or
more years .
• Emulates the
organizational
goals into
strategy .
• Takes future
market
expectation into
consideration .
• It is flexible and
evolving but
determines short
term plans .
Short Term Plan
• Usually annual.
• Specific Goals
for the year are
determined.
• Compared with
actuals and
course
correction .
• Plans are
determined on
the basis of Long
term and
introduction
Plans .
7. Components of a Business
plan:
• Concept of product and service to be
provided .
• Organizational set up and resources .
• Investing & Financing Plans.
• Statutory Compliances.
• Risk assessment.
• Marketing plan.
• Development Plan.
• Production or operation plan.
• Management team and key resource
personnel.
8. Concept of product/
service to be provided .
A product or a
service is the
lifeline of an
organization .It is
the primary
determinant of
an enterprise's
Growth and
wellbeing .
9. Concept of product/
service to be provided .
A product or a
service is the
lifeline of an
organization .It is
the primary
determinant of
an enterprise's
Growth and
wellbeing .
• Identify the product or service
that would fulfill a human need .
• Concentrate on technical details
,quality and sophistication .
• Chart out Standard Operating
Procedures .
• Identify Key markets and scale of
business.
• Carry out several test checks and
runs before you launch a new
product.
10. Organizational set up
and resources .
Every Start-up has
to make a primary
long term decision
regarding its
organizational set.
Several factors
should be kept in
mind to choose a
right set up.
11. Organizational set up
and resources .
Every Start-up has
to make a primary
long term decision
regarding its
organizational set.
Several factors
should be kept in
mind to choose a
right set up.
• Scale of Production
• Investment in plant and
machine tools required .
• Degree of technical knowhow
required .
• Money value of intellectual
property ,patents, copyright and
goodwill.
• Expected investors .
• Normal Market practices .
12. Investing & Financing
Plans.
All businesses
require a robust and
accurate Financial
plan .Investment
and financial
structures form the
corner stone of a
successful business.
Budgets, cash flow
,MIS are part of all
organizations.
13. Investing & Financing
Plans.
All businesses
require a robust and
accurate Financial
plan .Investment
and financial
structures form the
corner stone of a
successful business.
Budgets, cash flow
,MIS are part of all
organizations.
• Prepare Budgets for the financial
stability of the organization.
• Create a plan that would have
favorable debt equity ratio .
• Plan must aim at greater working
Capital Turns .
• Factor in opportunity costs and
time value of Money .
• Do not leave funds idle .
• Make the best of what you have .
15. Statutory Compliances.
Statutory
Compliances are
mission critical to
the very existence
and growth of an
Entity it is the Law
of the land that
has to be
Adhered to .
• Tax Implication on the entity
• Compliances with Labour Laws
• Compliance with Company’s
act.
• Shops and Establishment
related laws .
• Compliance with SEBI
requirements listing
agreements .
• Compliance with RBI
requirements.
16. Risk assessment.
Risk is an
inevitable part of
any business
model .The
ability to
manage risk
gives is the most
important
element of a
plan .
17. Risk assessment.
Risk is an
inevitable part of
any business
model .The ability
to manage risk
gives is the most
important
element of a plan
.
• Identify Risk
• Carry out SWOT Analysis to
understand the weaknesses and
threats .
• Insure against risk of Flood ,Fire
and inflammables .
• Foresee market risks .
• Control risk of data /design theft .
• Introduce Internal controls ,checks
and audits .
• Devise a backup plan .
18. Marketing and
Development Plan.
Marketing is a
key function that
propounds the
growth of all
business entities.
It helps the
business to
evolve as per the
needs of the
business .
19. Marketing and
Development Plan.
Marketing is a
key function that
propounds the
growth of all
business entities.
It helps the
business to
evolve as per the
needs of the
business .
• Identify appropriate positioning
of product life cycle .
• Identify a detailed promotion
and advertising strategy .
• Create an effective marketing
budget .
• Provide for research and
development expenses .
• Identify and review the strategy
to ensure costs are covered .
20. Management team
and key resource personnel.
Dedicated,
enthusiastic and
experienced
Human resources
helps an
organization to
function smoothly
.Manpower
planning is one of
the greatest
challenges for any
enterprise .
• Important to place the Right man in
the right Job .
• Opportunities for training and self
development are very important for
any organization .
• Staffing function planning and
salary structuring are essential
activities .
• Detailed organizational chart is an
essential plan .
21. Keep in mind
• Keep it simple .
• Plan should be realistic .
• Document your plan .
• Plan requires a dedicated review and course
collection .
• Planning is a long term investment .
• Planning is a synergy of all functions.