Business Plan

ENTREPRENEURSHIP

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What Is a Business Plan?
Business Plan
◦ A business plan is a written document, typically 25 to 35 pages long, that
describes what a new business aims to accomplish and how it plans to
accomplish it
Dual-Use Document
◦ For most new ventures, the business plan is a dual-purpose document used
both inside and outside the firm.

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Who Reads the Business Plan—And
What Are They Looking For?
There are two primary audience for a firm’s business plan

Audience What They are Looking For

A Firm’s A clearly written business plan helps the

Investors and A firm’s business plan must make the case that the
other external firm is a good use of an investor’s funds or the
stakeholders attention of others.

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WRITING THE BUSINESS PLAN
Introductory Page

Executive Summary

Environmental and Industry Analysis

Description of the Venture

Evaluating Business Plan

The Marketing Plan

Organizational Plan

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Outline of a Business Plan
Introductory Page
The title page provides a brief summary of the business plan's contents, and should
include:
The name and address of the company.
 The name of the entrepreneur and a telephone number.
A paragraph describing the company and the nature of the business.
 The amount of financing needed.
 It also sets out the basic concept that the entrepreneur is attempting what to
develop.

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Outline of a Business Plan(Cont.)
Executive Summary
This is prepared after the total plan is written. It should be three to four pages in
length and should highlight the key points in the business plan. The summary
should highlight in a concise manner the key Points in the business plan.
Issues that should be addressed include:
1. Brief description of the business concept
2. Any data that support the opportunity for the venture.
3. Highlight some key financial results that can be achieved

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 Outline of a Business Plan(Cont.)
Environmental and Industry Analysis
The entrepreneur should first conduct an environmental analysis to identify trends and change occurring
on a national and international level that may impact the new venture. Examples of environmental
factors are:
1. Economy
2. Culture
3. Technology
4. Legal concerns
All of the above external factors are generally uncontrollable. Next the entrepreneur should conduct an
industry analysis that focuses on specific industry trends Some examples of industry factors include:
• Industry demand
• Competition

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Outline of a Business Plan(Cont.)
Description of the Venture
• This should begin with the mission Statement or company mission, which
describes the nature of the business and what the entrepreneur hopes to
accomplish.
•The new venture should be described in detail, including the product,
location, personnel, background of entrepreneur, and history of the venture.
• Maps that locate customers, competitors, and alternative locations can be
helpful.

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Outline of a Business Plan(Cont.)
Evaluating Business Plans
Technical Business Plans may be evaluated on the following:
1. Viability
2. Market advantage
3. Technology

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Evaluating Business Plans

Viability The viability of a business is measured by its long-term survival, and its ability to have
sustainable profits over a period of time. If a business is viable, it is able to survive for many years,
because it continues to make a profit year after year. The longer a company can stay profitable,
the better its viability.
Example: The small company showed its viability by making a profit every year of its existence.
Market advantage It means that if the product is giving less profit means Entrepreneur has to
introduce several offers and discounts to give pick up of the product. It means that taking the
Market to sell as they wish.
Technology gives to evaluate the Business Plans efficiently and fastly for better output. Now a
day’s technology plays a vital role in the business world.

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Outline of a Business Plan(Cont.)
The Marketing Plan
One effective way to begin the marketing plan is to make a list of the information that will be
needed to prepare the marketing plan.
Possible objectives
Determine what people think of the product or service and if they would buy it.
Determine how much customers would be willing to pay for the product.
Determine where the customer would prefer to purchase the product.
Determine where the customer would expect to hear about such a product or service.

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Outline of a Business Plan(Cont.)
Characteristics Of A Marketing Plan
An effective marketing plan should:
1. Provide a strategy to accomplish the company mission.
2. Be based on facts and valid assumptions.
3. Provide for the use of existing resources.
4. Describe an organization to implement the plan.
5. Provide for continuity.
6. Be simple and short.
7. Be flexible.

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Outline of a Business Plan(Cont.)
Organizational Plan

Form of ownership

Identification of partners or principal shareholders

Authority of principals

Management– team background

Roles and responsibilities of members of organization

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 Outline of a Business Plan(Cont.)
Financial Plan
A financial plan is often seen as the basis for many other parts of the business plan. The financial plan for
the business will have at its heart standard features:
Profit forecast
Cash flow forecast
Projected balance sheet
The financial plan you set should be tailored to meet your individual business needs. To do so, it will also
include one or all of a range of other financial tools, such as:
 Business funding structure
 Working capital analysis
 Sales forecast
Returns achieved on sales

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Guiding factors Of A Successful
Entrepreneur
Clear objectives
HR abilities
Communication ability
Technical knowledge
High energy level
Motivator
Self confidence
Problem solver
Goal setter

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Types of Business Plans

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Types of Business Plans(Cont.)
Summary Plan
A summary business plan is 10 to 15 pages and works best for companies that are very early in
their development and are not prepared to write a full plan. The authors may be asking for
funding to conduct the analysis needed to write a full plan. Ironically, summary business plans
are also used by very experienced entrepreneurs who may be thinking about a new venture
but don’t want to take the time to write a full business plan.

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Types of Business Plans(Cont.)
Full Business Plan
A full business plan is typically 25 to 35 pages long. This type of plan spells out a company’s
operations and plans in much more detail than a summary business plan, and it is the format
that is usually used to prepare a business plan for an investor.
Operational Business Plan
Some established businesses will write an operational business plan, which is intended
primarily for an internal audience. An operational business plan is a blueprint for a company’s
operations. Commonly running between 40 and 100 pages in length, these plans can obviously
feature a great amount of detail that provide guidance to operational managers.

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Making an Effective Written
Presentation
• Use good grammar
• Limit the presentation to a reasonable length
• Go for an attractive, professional appearance
• Provide solid evidence for any claims
• Describe the product in lay terms
• Emphasize the qualifications of the management team
• Analyze the market thoroughly
• Include financial statements that are neither overly detailed nor
incomplete
• Don’t hide weaknesses—identify potential fatal flaws
• Maintain and insist on confidentiality

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What Not to Do
Mistakes to avoid in preparing a business plan:
 Failing to provide solid data.
 Failing to describe the product in lay terms.
 Failing to thoroughly analyze the market.
 Including financial statements that are overly detailed or incomplete.
 Hiding weaknesses.
 Overlooking the fatal flaw.
 Using bad grammar.
 Making the overall plan too long.

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THANKYOU

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