1. Creating and Starting the Venture
The Business Plan
Creating and Starting the Venture

3. What is a Business Plan?
A business plan is a written document prepared by an entrepreneur describes all the relevant internal and external elements involved in starting a new venture.
Generally, Its is an integration of functional plans such as marketing, finance, manufacturing and human resource.
It is a ROAD MAP for a business.

4. Who should write the Plan?
The business plan should ne prepared by Entrepreneur himself. However, he/ she can consult with other experts of related fields e.g. Lawyers, Accountants, Marketing Consultants or Engineers etc.
Entrepreneur can also acquire necessary information from internet.
Internet also provide sample templates or outline for Plan write-up.

5. Who should write the Plan?
In some cases Entrepreneurs hire consultants for the provision of appropriate expertise.
To determine whether or not to hire an external for Plan write-up, entrepreneur needs to make an objective assessment of his/ her own skills.

6. Skill Assessment Skills Excellent Good Fair Poor Accounting/Tax
Planning
Forecasting
Marketing research
Sales
People management
Product Design
Legal issues
Organizing

7. Who reads the Plan? A business plan may be read by; Employees
Investors
Bankers
Venture capitalists
Suppliers
Customers
Advisors
Consultants

8. Who reads the Plan?
Each of the above mentioned group reads the plan for a different purpose, so the entrepreneur must be prepared to address all their issues and concerns.
I n some ways, the business plan must try to satisfy the need of everyone, whereas in the actual market place the entrepreneur’s product will be trying to meet the needs of selected groups of customers.

9. 3 Perspectives of Business Plan
Perspective of Entrepreneur
Owner of the venture, who can clearly articulate what the venture is all about.
Perspective of the Market
Entrepreneur along with explain his product must consider the market perspective. He should see and explain his product from customers eye.
Perspective of Investors
The business should show high potential for outsiders for financial projection.

10. Information Needs
Before committing time and energy to preparing a business plan, the entrepreneur should do a quick feasibility study of the business concept to see whether there are any possible barriers to success.

11. Market Information Market Positioning Market Objectives
General Environment & Demographic Needs
National Industry Trends
Local Industry Trends
Local Competition (Strengths & Weakness)
Market Positioning
Market Objectives

12. Operation Information Needs
The relevance of a feasibility study of the manufacturing operations depends on the nature of the business; the entrepreneur may need information on the following
Location– Accessibility to customers, suppliers & distributers
Manufacturing Operations– Machine & Assembly Operations
Raw Materials– Acquisitions
Equipment– Needed equipments, purchased or leased
Labor Skills– All unique skills needed, staff needed, pay rate
Space– Total space needed, owned or leased
Overhead– Items needed to support manufacturing, tools, supplies, utilities etc

13. Outline of a Business Plan
Introductory Page
Executive Summary
Industry Analysis
Description of Venture
Production Plan
Operational Plan
Marketing Plan
Organizational Plan
Assessment of Risk
Financial Plan
Appendix

14. I- Introductory Page Name and address of the business
Name(s) and address(es) of principal
Nature of Business
Statement of Financing needed
Statement of confidentiality of report
This page sets out the basic concept that the entrepreneur is attempting to develop. Its give a glimpse of what the document is all about before one has started reading it formally.

15. II- Executive Summary
This section should address a number of issues like
What is the business concept or model?
How is this business concept or model unique?
Who are the individuals starting this venture?
How will they make money and how much?
(2-3 pages), This section of the plan is prepared after the total plan is written. Executive summary stimulates the interest of the reader (employee, supplier, distribute or investor) in the whole document.

16. III- Environment and Industry Analysis
Future Outlook and trends
Analysis of competitors
Market Segmentation
Industry and Market Forecast
Environment analysis— assessment of external uncontrollable variables that may impact the business plan.
Industry analysis— reviews industry trends and competitive strategies.

17. IV- Description of Venture
Product(s)
Service(s)
Size of business
Office Equipment and Personnel
Background of Entrepreneur
This section should start with the mission statement of the venture. Gives in-depth information about size and scope of the business

18. V- Production Plan Manufacturing Process (Amount subcontracted)
Physical Plant
Machinery and Equipment
Names of Suppliers of raw materials
The plan explains all the details regarding production e.g. if some or all of the processes are to be subcontracted, description of all subcontractor(s), including location, reasons for selection, cost, and any contracts that have been completed.

19. VI- Operational Plan Description of company’s operations
Flow of orders for goods and/or services
Technology utilization
This process goes beyond the manufacturing process and describes the flow of goods and services from production to customers.
It also includes inventory and storage of manufactured products, shipping, inventory control procedures and customer support service.

20. VII- Marketing Plan Pricing Distribution (Placement) Promotion
Product forecast
Controls
Describes market conditions and strategy related to how the product(s) and service(s) will be distributed, priced and promoted

21. VIII- Organizational Plan
Form of ownership
Identification of partners or principal shareholders
Authority of principals
Management-team background
Roles and responsibilities of members of organization
Describes forms of ownership (Sole proprietorship, partnership or corporation) and lines of authority and responsibilities of members of new venture.

22. IX- Assessment of Risk Evaluate weakness(es) of business
New technologies
Contingency Plans
Assessment of risk identifies potential hazards and alternative strategies to meet business plan goals and objectives.
Potential Risks? – what if risk becomes reality? – alternative strategy?

23. X- Financial Plan Assumptions Pro forma income statement
Cash flow projections
Pro forma balance sheet
Break-even analysis
Sources and application of funds
Projections of key financial data that determine economic feasibility and necessary financial investment commitment.

24. XI- Appendix Letters Market research data Leases or contract
Price lists from suppliers etc.
This section contains any backup material that is not necessary in the text of the document. Reference to any of the documents in the appendix should be made in the plan itself.

25. Using and Implementing the Plan
Measuring Plan Progress
Inventory Control
Production Control
Quality Control
Sales control
Disbursement Control
Website Control
Updating the Plan

26. Why Business Plans Fail?
Goals set by entrepreneur are unreasonable
Goals are not measurable.
The entrepreneur has not made a total commitment to the business.
The entrepreneur has no experience in the planned business.
The entrepreneur has no sense of potential threats and weaknesses to the business.
No customer need was established for the proposed product or service.