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    Need For A Business Plan

    Uploaded by

    Kyle Lang
    The document outlines what a business plan is and why it is important. A business plan serves as a roadmap for starting a business and describes all relevant elements like marketing, finance, manufacturing and human resources. It helps entrepreneurs decide their goals and viability, plan realistically, and obtain financing. A good business plan explains the business strategy, market, customers and competitors. It also describes how products, services, marketing and operations tie to the strategy. The plan should be factual, brief, and realistic in forecasts.

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    Need For A Business Plan

    Uploaded by

    Kyle Lang
    43 views3 pages
    The document outlines what a business plan is and why it is important. A business plan serves as a roadmap for starting a business and describes all relevant elements like marketing, finance, manufacturing and human resources. It helps entrepreneurs decide their goals and viability, plan realistically, and obtain financing. A good business plan explains the business strategy, market, customers and competitors. It also describes how products, services, marketing and operations tie to the strategy. The plan should be factual, brief, and realistic in forecasts.

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    Business plan in detail

    Original Title

    Business Plan

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    The document outlines what a business plan is and why it is important. A business plan serves as a roadmap for starting a business and describes all relevant elements like marketing, finance, manufacturing and human resources. It helps entrepreneurs decide their goals and viability, plan realistically, and obtain financing. A good business plan explains the business strategy, market, customers and competitors. It also describes how products, services, marketing and operations tie to the strategy. The plan should be factual, brief, and realistic in forecasts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    43 views3 pages

    Need For A Business Plan

    Uploaded by

    Kyle Lang
    The document outlines what a business plan is and why it is important. A business plan serves as a roadmap for starting a business and describes all relevant elements like marketing, finance, manufacturing and human resources. It helps entrepreneurs decide their goals and viability, plan realistically, and obtain financing. A good business plan explains the business strategy, market, customers and competitors. It also describes how products, services, marketing and operations tie to the strategy. The plan should be factual, brief, and realistic in forecasts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    BUSINESS PLAN

    The business plan is a written document that serves as a road map in the entrepreneurs
    journey from start-up to project implementation. It describes all the relevant elements
    involved in starting a new business enterprise. It is often an integration of functional plans
    such as marketing, finance, manufacturing and human resources. Potential investors and
    suppliers too are interested in a business plan, as it can prove helpful in taking decisions.
    NEED FOR A BUSINESS PLAN
    The depth and detail of the business plan depends upon the size of the market, nature of
    business [manufacturing/trading/service] and degree of competition. For, e.g., an
    entrepreneur planning to market a new washing machine will need a comprehensive business
    plan. On the other hand, an entrepreneur who plans to open a general provisions
    corner store will not need such a comprehensive business plan. Business plan is important
    due to the following reasons:
    (i) It helps the entrepreneur to decide where he wants to go.
    (ii) It helps him to determine the viability of the venture.
    (iii) It provides guidance to the entrepreneur in planning realistic goals and
    targets, in organizing and even in identifying possible roadblocks.
    (iv) It is a pre-requisite to obtain finance.
    While outlining a business plan, you should start with describing about your business and
    product or services. Then indicate the market you are targeting and the stage of development
    your company is in. If you get stuck at a particular part of the plan, leave it for a while and
    get back to it later and finish it. You cannot make a perfect first draft. So just get some
    thoughts down to start the process. You can always come back and change it or polish it up
    later. While making a business plan keep the following points in mind.
    1. The target audience: While working your business plan, keep in mind the
    intended audience and why you are writing plan. For example, if you are trying to get
    debt financing, the emphasis should not be on the huge profit potential but on the
    certainty that the debt can be repaid.
    2. Business strategy: The first part of the business plan should be geared towards
    helping develop and support solid business strategy. The plan should explain the market,
    the industry, target customers and competitors.
    The second half of the business plan should explain how to execute your selected business
    strategy. Your products, services, marketing and operations should all closely tie in
    with your strategy.
    3. Competition: As an entrepreneur, you need to identify where you will do things in a
    manner similar to your competitors and where you will do things differently, what
    will be your real strengths and real weaknesses. Focus your plan on being different than
    your competitors. Think over the points-Can you find a unique strategy? Can you
    position your products differently? Can you use different sales or marketing vehicles?
    Your business plan should be able to answer these questions.
    4. Be realistic: So many business plans do not work in the real life as there are
    always going to be some unseen expenditures, cost overruns, expensive problems and
    items that you simply overlooked. So forecast realistically and try to have a
    contingency reserve.
    5. Involvement of people for creating the business plan In seeking funds from
    banks, venture capitalists or other outside investors, the chances of success are
    greater if your management team includes a person whose name carries some
    weight, to get the plan in synchronized fashion, and to get any disagreements, out in the
    open. The more input people have in creating the plan, the more responsibility
    they will feel towards it.

    6. You should keep your business plan factual and brief.
    Outline of a Business Plan
    1 Introductory Page
    (a) Name and address of business
    (b) Name(s) and address (es) of principals
    (c) Nature of business
    (d) Statement of financing needed
    (e) Statement of confidentiality of report


    2 Executive Summary Three to four pages summarizing the complete
    business plan.

    3 Industry Analysis
    (a) Future outlook and trends
    (b) Analysis of competitors
    (c) Market segmentation
    (d) Industry forecasts

    4 Description of Venture
    (a) Product (s)
    (b) Services (s)
    (c) Size of business
    (d) Office equipment and personnel
    (e) Background of entrepreneurs

    5 Production Plan
    (a) Manufacturing process (amount subcontracted)
    (b) Physical plant
    (c) Machinery and equipment
    (d) Names of suppliers of raw materials

    6 Marketing Plan
    (a) Pricing
    (b) Distribution
    (c) Production
    (d) Product forecasts
    (e) Controls




    7 Organisational Plan
    (a) Form of ownership
    (b) Identification of partners or principal shareholders
    (c) Authority of principals
    (d) Management-team background
    (e) Roles and responsibilities of members of organization

    8 Assessment of Risk
    (a) Evaluate weakness of business
    (b) New technologies
    (c) Contingency plans

    9 Financial Plan
    (a) Pro forma income statement
    (b) Cash flow projection
    (c) Pro forma balance sheet
    (d) Break-even analysis
    (e) Sources and application of funds

    10 Appendix (contains backup material)
    (a) Letters
    (b) Market research data
    (c) Leases or contracts
    (d) Price lists from suppliers

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