Presentation on theme: "SESSION-2 Business Plan Development"— Presentation transcript:
1 SESSION-2 Business Plan Development Objectives:To define what the business plan is, and who prepares itTo understand the scope and value of the business plan to investors, lenders, employees, suppliers, and customersTo identify information needs and sources for each critical section of the business planTo present examples and a step-by-step explanation of the business planTo present helpful questions for the entrepreneur at each stage of the planning process
2 What is Business Plan? BP is ….. a written document prepared by the entrepreneur that describes all the relevant external and internal elements involved in starting a new ventureUseful for new venture or for the expansion of the existing business
3 A Good Business Plan is... complete short integrated prepared for the audienceorganized
4 Who should write the plan? Entrepreneur, with:LawyerAccountantFinancial consultantMarketing consultantEngineer, etc.or: Professional consultantSource of information:Gov. AgencyUniversityAssociationInternetetc.
5 How is BP evaluated? Suppliers: Customers: Lenders/Bank: Investors: to supply components or finished goods, the number of materials, etc.Customers:products, quality, quantity, after sales service, etc.Lenders/Bank:the ability to pay back the debt, potential risk, etc. or 4 Cs of credit (character, cash flow, collateral, equity contribution)Investors:pay back period, ability to generate income (return), etc.
6 Information needs: Production and operation information needs: location, manufacturing operations, raw material, equipment, labor skills, space, overheadMarketing information:market potential, STPD (Segmentation, Targeting, Positioning, Differentiation)Financial information needs:Sales forecasting, capital expenditures, direct operating expenses, etc.
7 Outline of BP: Introductory Page Executive Summary Environmental and Industry AnalysisDescription of VentureProduction PlanOperational PlanMarketing PlanOrganizational PlanAssessment of RiskFinancial PlanAppendix
8 I. Introductory Page Name and Address Name of the entrepreneur(s), telp number, address, student IDNature of BusinessStatement of Financing NeededStatement of Confidentially Report