1. Entrepreneurship Management The Business plan Prof Bharat Nadkarni

2. Entrepreneurship Management Business Plan
The business plan, although often criticised for being dreams of glory is probably the single most important document to the entrepreneur at the start-up stage. Potential investors are not likely to consider investing in a new venture until the business plan has been completed. In addition, the business plan helps maintain a perspective for the entrepreneur of what needs to be accomplished.
Business plan
Written document describing all relevant internal and external elements and strategies for starting a new venture.It is often an integration of functional plans such as marketing, finance, manufacturing and human resources.It also addresses both short term and long term decision making for the first 3 years of operation.

3. Entrepreneurship Management Business Plan
Writing the Business Plan
The business plan could take more than 200 hours to prepare, depending on the experience and knowledge of the entrepreneur as well as the purpose it is intended to serve. It should be comprehensive enough to give any potential investor a complete picture and understanding of the new venture and will help the entrepreneur clarify his or her thinking about the business.
Many entrepreneurs incorrectly estimate the length of time that an effective plan will take to prepare. Once the process has begun, however, the entrepreneur will realise that it is invaluable in sorting out the business functions of a new venture.
The outline of a business plan is covered in next few slides.

4. Entrepreneurship Management Business Plan
Reasons for a Business Plan
The reason for compiling a business plan will be different for each situation:
If you are starting a new business you will require a plan to clearly assess every aspect of the business and show how it will succeed. Also helps to obtain capital for the venture.
If you are buying an already established business you will need to identify the strengths and weaknesses of the business to decide if you will be able to make it a success.
If you are already up and running and in need of extra finance you will need a plan to convince those putting capital into your business that you can and will succeed.
If you are applying for one of the many grants available.

5. Entrepreneurship Management Business Plan
I Introductory Page
Name & address of the business
Name(s) & address(es) of principals
Nature of business
Statement of financing needed
Statement of confidentiality of report
II Executive Summary
Three to four pages summarising the complete business plan

6. Entrepreneurship Management Business Plan
III Industry Analysis
Future outlook and trends
Analysis of competitors
Market segmentation
Industry forecasts
Demand / Product sales forecasts
IV Description of the venture
Product(s) / Capacity
Service(s) / Capacity
Size of business
Office equipment and personnel
Background of entrepreneurs

7. Entrepreneurship Management Business Plan
V Production Plan
Manufacturing process (incl subcontracting, if any)
Physical plant
Machinery and equipment
List of suppliers of raw materials
VI Marketing Plan
Pricing
Distribution
Promotion
Controls

8. Entrepreneurship Management Business Plan
VII Financial Plan
Proforma income statement
Cash flow projections
Proforma balance sheet
Break-even analysis
Sources and applications of funds
VIII Assessment of Risk
Evaluate weakness of business
New technologies
Environmental Risks
Contingency plans

9. Entrepreneurship Management Business Plan
IX Organisational Plan
Form of ownership
Identification of partners and principal shareholders
Authority of principals
Management-team background
Roles and responsibilities of members of organisation
X Appendix (mainly contains back up material)
Letters
Market research data
Leases or contracts
Price lists from suppliers

10. Entrepreneurship Management Business Plan
Implementation and Review of the plan
The business plan is designed to guide the entrepreneur through the first year of operations. It is important that the implementation of the strategy contain control points to ascertain progress and to initiate contingency plans if necessary.
Most important to the entrepreneur is that the business plan not end up in a drawer somewhere once the financing has been attained and the business launched.
The progress of the venture should be reviewed periodically with the goals and objectives set in the business plan. Due actions for course corrections must be taken which eventually will lead to the success of the venture.

11. Entrepreneurship Management
Reasons why some businesses fail
Mindset Problem.
The Marketing aspect
a. Ignoring competition
b. Ineffective customer service
c. Approach not Customer driven
d. Internal marketing
3. The Financial aspect
a. Lack of foresight b. Cash flow problem
4. The Inappropriate team
5. The Technological aspect
6. The Planning flaws
7. The Personal issues

12. Entrepreneurship Management Business Plan
Thank you