AENT – UNIT – II

BUSINESS PLANNING & EXPLORING REVENUE

Contents:
1. Business Plan
2. Sales Plan
3. Hiring Sale Team
4. People Plan
5. Financial Planning
6. Financial Forecasting
7. Procurement Plan
8. Negotiating Role Play
9. Understanding Primary Revenue Sources
10. Exploring Customer Lifecycle for Growth
Customers
11. Exploring and Identify Secondary Sources of
Revenue
1. Business Plan
A business plan is a written document that describes
in detail how a business — usually a startup —
defines its objectives and how it is to go about
achieving its goals. A business plan lays out a
written roadmap for the firm from each of a sales,
financial, and Human Resource planning.

Business plans are important documents used to

attract investment before a company has established
a proven track record. They are also a good way for
companies to keep themselves on target going
forward.
1. Business Plan
Types of Business Plans
Business plans help companies identify their
objectives and remain on track. They can help
companies start and manage themselves, and to help
grow after they're up and running. They also act as a
means to get people to work with and invest in the
business.
Components of Business Plans
1. Executive summary
2. Business description and structure.
3. Market research and strategies.
4. Management and personnel.
2. Sales Plan
Sales plans often include information about the
business' target customers, revenue goals, team
structure, and the strategies and resources necessary
for achieving its targets.
An effective sales plan should do the following:
Communicate your company’s goals and objectives
to your sales team.
Provide strategic direction for your sales team.
Outline roles and responsibilities for your sales team
and leadership.
Monitor your sales team’s progress to organizational
goal
3. Hiring Sales Team:
companies need to hire sales teams that are multi-
dimensional—salespeople who collaborate with others, help
customers, use analytics, and work social media. With
expert recruiting advice and the latest hiring trends,
Monster Hiring Solutions can help your company find the
best salespeople to grow your business.
Make Sure You're Actually Ready to Hire Commission
Only Sales Reps.
Put Your Best Foot Forward.
Provide the Sales Training that Your Reps and Teams
Need.
Explain Your Sales Process Clearly.
Create the Right Power Dynamic.
4. People Plan:
What Is Human Resource Planning (HRP)?
Human resource planning (HRP) is the continuous
process of systematic planning ahead to achieve optimum
use of an organization's most valuable asset—quality
employees. Human resources planning ensures the best fit
between employees and jobs while avoiding manpower
shortages or surpluses.
There are four key steps to the HRP process. They
include analyzing present labor supply, forecasting labor
demand, balancing projected labor demand with supply,
and supporting organizational goals. HRP is an important
investment for any business as it allows companies to
remain both productive and profitable.
4. People Plan:
Workforce or People Planning - Simple Steps. Workforce,
or people planning, means identifying the strengths and skills
you will need people to have, the work they will need to do,
and when you will need them, to meet future objectives.
Strategies:
1. Treat your applicants well.
2. Think about the cost/benefit before your hire.
3. Try a freelancer.
4. Get potential employees with
previous startup experience.
5. to strengthen your employer brand.
6. Use an employee referral program.
 5. Financial Planning:

A financial plan is a document containing a person's

current money situation and long-term monetary goals,
as well as strategies to achieve those goals. A financial
plan may be created independently or with the help of
a certified financial planner.
In either case, it begins with a thorough evaluation of
the individual's current financial state and future
expectations.
 5. Financial Planning:
Financial planning is a step-by-step approach to meet one’s
life goals. A financial plan acts as a guide as you go through
life’s journey. Essentially, it helps you be in control of your
income, expenses and investments such that you can manage
your money and achieve your goals.
If you take a closer look at the above examples, you’ll find
that there is one factor that connects all of them: money. You
need to have an adequate amount of money to fulfill your
goals and desires. More importantly, you need to have money
at the right point in time.
For example, if you want to build up a corpus of Rs. 10 lakh
for your daughter’s college education through investments,
you need to grow this amount by the time she turns 18. Not a
year later. This is where financial planning becomes essential.
 6. Financial Forecasting:

Financial Forecasting is the process of predicting or

estimating future stats of an organization i.e. how
business will perform in the future based on historical
data like by analyzing the income statement, position
statement, current conditions, past trends of the
financial, future internal and external environment
which is usually undertaken with the objective of
preparing and developing budget and allocating
available resources to ensure best possible utilization.
 New Business Promotion – Financial forecasting helps businesses
utilize its funds to promote new business ventures and initiatives. It
also helps in determining the success rate of the business they are
promoting.
 Seamless Functioning– Accurate and effective forecasting of the
finances like current revenue, revenue potential, and other expenses
helps in the organization’s smooth running. The forecast also helps in
anticipating future roadblocks.
 Estimating Financial Requirements – It helps determine sales and
cost of customer acquisition, capital for a specific project, and other
expenses required for further management of the business. This
preemptive forecast helps in making sound business decisions.
 Control Cash Flow – It helps in controlling the cash flows of a
business. Organizations with a good amount of cash/bank balance are
more financially organized and better control their business operations.
 Archive Overall Success – Financial forecast is important in achieving
overall success for the business as it forms a strong foundation for the
complete budgeting of departments across the organizations.
 7. Procurement Plan
 procurement plan -- also called a procurement management plan -- is a
document that is used to manage the process of finding and selecting a
vendor. The plan justifies the need for an external supplier and explains how
the process of finding a supplier will be performed -- from identifying the
project requirements to closing the contract.
 The goal of a procurement plan is to increase the efficiency, effectiveness
and transparency of the procurement process. The document specifically
describes how products or services will be acquired and how vendors will be
managed during the project. It includes information such as the types of
contracts that will be used, the planned delivery or implementation dates for
the contracted products or services, the types of metrics that will be used to
evaluate the vendor's performance and an explanation of how the
procurement process will be performed.
 Creating a procurement plan helps an organization avoid surprises and last-
minute considerations. The document helps leaders decide what to buy,
when to buy it and what sources to purchase from. A procurement plan also
allows project planners to determine if their expectations and requirements
are realistic and can be completed in the proposed project timeline.
 NEGOTIATING ROLE PLAY
>>>negotiation plays an important role in determining whether a customer
purchases, and if so, at what price. A retailer may adopt negotiation

Negotiating skills for sales team people are crucial and improving them
will set the foundation for a successful sale transaction

Guidelines:
 Write down one personal area for improvement related to negotiating.
 Choose who will play the salesperson and who will play the prospect. ...
 Go through a standard negotiation. ...
 After you come to an agreement or decide your needs are incompatible,
debrief. ...
 Switch roles
UNDERSTANDING PRIMARY REVENUE SOURCES
A revenue stream is a distinct source of income that
can come from either be recurring revenue,
transaction-based or service revenue. A business can
have a single source of revenue or multiple sources
depending on its business model

For any company, the primary revenue sources may be

considered as the SALE of goods or services
EXPLORING CUSTOMER LIFECYCLE FOR GROWTH
CUSTOMERS

 In terms of customer relationship management, the customer

lifecycle describes the various stages a consumer goes
through before, during and after they complete a transaction.
Simply put, it's the Point A to Point B journey a customer
takes until they make the final purchase.

 Life cycle management is a practice that can make or break

your ability to upsell, cross-sell, and otherwise grow an
existing customer relationship, and it helps companies
cultivate brand loyalty by identifying opportunities for
adding value to the customer equation at key points in time.
 There five basic stages of a customer lifecycle:
Reach: Your marketing material and content needs to be in places
where consumers will find it. Reach is the first step in the lifecycle
because it develops awareness right away.
Acquire: Ecommerce acquisition is very important. Reaching
potential customers won't mean much if you can't offer relevant
content or messaging. Understanding your brand, the products you
offer and what type of person will buy them will help with
acquisition. Contacting them directly with personalized
communication improves the odds of a future conversion.
Develop/nurture: Once that first purchase is made, your business
needs to keep in contact with the customer. This is where you
develop a relationship with the buyer, ensuring they're fully
satisfied with their initial transaction. You can also use back-end
analytics to predict what else they may like based on what they
bought the first time around. Asking for feedback also helps
develop the relationship; customers like that their opinion is valued.
Retention: If you're able to continually
send relevant and meaningful messaging to a customer, the
chances that they return and make another purchase are higher.
Retention begins with satisfying a consumer's needs, caring for
them and cultivating the relationship. If you can take a customer's
feedback and use it to improve a product or service, you make
them feel as if they were a part of the process. Performing a
customer feedback analysis is key in finding actionable insights
that can lead to a stronger customer relationship. This type of
trust is valuable to customer retention.
Advocacy: Once the retention stage of the lifecycle is reached,
you want these customers to become a brand advocate for your
business. If they are truly satisfied, they likely won't have issues
recommending your products or services to friends and family.
Spreading awareness amongst social circles is easy to do once a
customer is loyal to a brand, and if they continually spread
positive recommendations, their extended network is more likely
EXPLORING AND IDENTIFY SECONDARY SOURCES OF REVENUE

Secondary revenue refers to revenue generated from

goods or services which differ from the main product
or service lines of a company. It may also be referred
to as ancilliary or non-core revenue or as monetisation
THANK
YOU