1.
UNIT-4
BUSINESS PLAN

2.
DEFINITION
• Mar J. Dollinger has defined the business
plan as “the formal written expression of the
entrepreneurial vision, describing the strategy
and operations of the proposed venture.”
• A business plan is a formal written document
that describes the strategies and opportunities of
a proposed venture. It contains current status
and projected results of the new business.

3.
Importance of Business Plan
• Financial Blueprint
• Reduce errors
• Attract stake-holders
• Guide to decision making and judgment

4.
Objectives of a Business Plan
• To give direction to the vision of Entrepreneur
• To objectively evaluate the future prospects of the
business To monitor the progress after
implementation of the plan
• To seek loans from Financial Institutions To
facilitate the decision making process To persuade
others to join the business
• To identify strengths and weaknesses present in the
internal environment To identify opportunities and
threats in the external environment
• To assess the feasibility of the business

5.
Contents OF Business plan
• Executive Summary
• Details of Executive Summary
• Mission
• The Company
• The Business Competition
• Management Team
• Capital Requirements
• Financial Projections
• The market

6.
Aspects of Business Plan

7.
Financial Aspects:
• Purpose of financing:whether the funds are
required for modernisation, working capital,
expansion or diversification or for research and
development.
• Amount of Investment :The capital
structure, projected growth, investment in fixed
assets and intangible assets, advertising and
marketing expenditure and working capital
expenses, R&D expenses should be added.

8.
Financial Aspects
• Capacity: Here capacity means cash flow and the
firm’s ability to meet its regular financial obligations
and to repay loans.
• Plans for repayment: An important element of
the loan or investment proposal is the repayment
schedule or exit strategy. The entrepreneur should
also include the exit strategies if the company fails
in successful operations.

9.
Financial Aspects
• Financial projections: The company should
include all the financial statements like cash flow
statements, fund flow statements, profit and loss
account, balance sheets, break-even analysis and
statement of assumptions of the previous years

10.
Marketing Aspects of Business Plan:
• Market segment: The BP should contain
information relating to how the market is
segmented or differentiated.
• Pricing: The pricing policy should be clearly
defined. The company should state whether the
products are priced based on market price, cost
price, gross profit objectives, or perceived
• value.

11.
Marketing Aspects of Business Plan:
• Promotional strategies: It is the modern way to
market the products. In this stiff competition there
is a need for using promotional strategies like cash
backs, reward points, free after sale services,
guarantees and warrantees, discounts and coupons
etc
• Research and Development: The company
should concentrate on R&D constantly to modify
and update the products regularly so that it suits the
targeted customers in long run.

12.
Marketing Aspects of Business Plan:
• Distribution Channels: It is the most
important part. Distribution channel play a
significant role in reducing the cost as well as
reaching the target customers quickly. Ex
Wholesaler, retailer, factory outlets, exclusive
online sale, door to door selling, agency selling,
chain link selling etc., must be described clearly.