1. ED - UNIT III BUSINESS PLAN PREPARATION

2. Business Idea Generation Techniques

3. TECHNICAL SOURCES Scientist from R & D Engineers from Production Field Staff

4. Ideas from marketing sources Focus groups Brainstorming Reverse brainstorming Rawlinson Brainstorming Checklist Free association Forced relationships Heuristics

5. Scientific method Value analysis Big-dream approach Parametric analysis Taguchi method Trigger sessions Creative listening Collective notebook method Attribute listing

6. OTHER SOURCES OF BUSINESS / PROJECT IDENTIFICATION OPPORTUNITIES I. INTERNAL SOURCES OF INNOVATION

7. 1. a. Unexpected success 1. b. Unexpected failure 2. Incongruity 3. Process need 4. Industry & market structure

8. EXTERNAL SOURCES OF INNOVATIVE OPPORTUNITIES 1. Demography 2. Changes in perception 3. New knowledge

9. Trade fair Positioning Success stories of known entrepreneurs Consultants Professional magazines Watching emerging trends in demands for certain products Meeting with government agencies Competitors

10. CRITERIA FOR SELECTION OF PRODUCT OR STAGES IN NEW PRODUCT DEVELOPMENT 1. Idea generation 2. Screening 3. Concept development and evaluation 4. Business analysis 5. Product development and evaluation 6. Development and evaluation of marketing mix 7. Test marketing 8. Commercialization of the product

11. PROJECT IDENTIFICATION & SELECTION Meaning: Project is a business plan or idea that is intended to be carried out.

12. PROJECT CLASSIFICATION 1.Quantifiable Project & Non-quantifiable 2.Sectoral Projects 3.Techno - economic project A. Factor intensity oriented a. Capital Intensive b. Labour intensive B. Causation -oriented c. Demand based project d. Raw material based

13. C. Magnitude – oriented project I.Large scale II.Medium scale III.Small scale How would you select a project?

14. PROJECT FORMULATION Meaning of project report Project report or business plan is a written statement of what an entrepreneur proposes to take up. It is a guide or course of action what the entrepreneur hopes to achieve in his business and how is he going to achieve it. Significance of project report

15. CONTENTS OF PROJECT REPORT 1.General information 2.Promoter 3.Location 4.Land & Building 5.Plant & Machinery 6.Production Process 7.Utilities 8.Transport & communication 9.Raw material 10.Manpower 11.Products 12.Markets 13.Requirement of working capital 14.Requirement of funds 15.Cost of production and profitability of first ten years 16.Break-even analysis 17.Schedule of implementation

16. FORMULATION OF A PROJECT REPORT STAGES General information Project description Market potential Capital costs and source of finance Assessment of working capital Other financial aspects Economic and social variables Project implementation

17. 1.GENERAL INFORMATION a. bio data of promoter b. Industry Profile c. Constitution and Organization d. Product Details

18. 2. PROJECT DESCRIPTION Site Physical infrastructure raw material Skilled labour Utilities power fuel water pollution control Communication system Transport facilities Other common facilities Production process Machinery & equipment Capacity of the plant Technology selected Research & development

19. 3. MARKET POTENTIAL Demand and supply position Expected price Marketing strategy After sales and service Transportation

20. 4. Capital cost and sources of finance 5. Assessment of working capital requirement 6. Other financial aspects

21. 7. Economic and social variables Employment generation Import substitution Ancillarisation Exports Local resource utilization Development of the area

22. 8. PROJECT IMPLEMENTATION

23. PROJECT APPRAISAL Project appraisal is the cost benefit analysis of different aspects of proposed project with an objective to determine its viability.

24. METHODS OF PROJECT APPRAISAL Economic Feasibility Financial Feasibility Market Feasibility Technical Feasibility Managerial Feasibility Locational Feasibility

25. Economic Feasibility Requirement for raw materials Level of capacity utilization Anticipated sales Anticipated expenses Probable profits Government policies, incentives and subsidies

26. Financial Analysis Assessment of financial requirement fixed capital working capital

27. Market Analysis 1. Opinion polling method i.Complete enumeration method ii.Sample survey iii.Sales experience method iv.Vicarious method 2. Life cycle segmentation method

28. Technical Analysis Technical know-how Skilled labour Availability of machinery Availability of service Coping with anti pollution law

29. Managerial Analysis Locational feasibility

30. Distinction between Pvt and public company Basis of difPvt CoPublic Co Members2 - 507 – no limit ProspectusNo FilingFiling must Documents 2 signs7 signs Allotment of share Commence before minimum subscription Commence after min subs commencementAfter incorporation After certified

31. Transfer of shares Restricted by articles Freely transferable Filing of balance sheet not necessaryNecessary before registrar Statutory meetNeed not hold or report to registrar must do Directors no provisions 3