Business Plan

The primary value of business plan is to create a written outline that evaluates all aspects of the
economic viability business venture including a description and analysis of business prospects.
Creating a business plan is an essential step for any prudent entrepreneur to take, regardless of
the size of the business.

Importance of Business Plan

Business plan is useful in a number of ways:

• First and foremost, it defines and focuses the objective using appropriate information and
analysis.

• It can be used as a selling tool in dealing with important relationships including lenders,
investors and banks.

• A business plan can uncover omissions and/or weaknesses in the planning process.

• The plan can be used to solicit opinions and advice from people, including those in the
intended field of business, who will freely give invaluable advice.

What to Avoid in Business Plan

• Place some reasonable limits on long-term, future projections. (Long-term means over
one year.) Better to stick with short-term objectives and modify the plan as business
progresses. Too often, long-range planning becomes meaningless because the reality of
your business can be different from your initial concept.

• Avoid optimism. In fact, to offset optimism, be extremely conservative in predicting

capital requirements, timelines, sales and profits. Few business plans correctly anticipate
how much money and time will be required.

• Do not ignore spelling out what strategies will be in the event of business adversities.

• Use simple language in explaining the issues. Make it easy to read and understand.
 • Don't depend entirely on the uniqueness of business or even a patented invention.
Success comes to those who start businesses with great economics and not necessarily
great inventions.

Business Plan Format

The Business Plan format is a systematic assessment of all the factors critical to business
purpose and goals.

Here are some suggested topics that can tailor into plan:

• A Vision Statement:

This is a concise outline of business purpose and goals.

• The People:

By far, the most important ingredient for success will be the management. Focus on how
the prior experiences are applicable to the new business. Prepare a résumé of yourself
and one for each person who will be involved with you in starting the business. Be
factual and avoid hype. This part of your Business Plan is to be read very carefully by
those with whom will be having relationships, including lenders, investors and vendors.

However, one cannot be someone who you are not. If one lacks the ability to perform a key
function, include this in business plan. For example, if one lacks the ability to train staff, include
an explanation how one will compensate for the deficiency. One could add a partner to the plan
or plan to hire key people who will provide skills that one doesn’t have. Include biographies of
all intended management.

• Business Profile:

Define and describes the intended business and try to stay focused on the specialized
market and intend to serve it.

• Economic Assessment:

Provide a complete assessment of the economic environment in which the business will
become a part. Explain how the business will be appropriate for the regulatory agencies
 and demographics with which one will be dealing. If appropriate, provide demographic
studies and traffic flow data normally available from local planning departments.

• Cash flow assessment:

Include a one-year cash flow that will incorporate the capital requirements. Include the
assessment of what could go wrong and how the plan to handle problems.

Include the marketing plan and expansion plans.

Six Steps to A Great Business Plan:

Start-up entrepreneurs often have difficulty writing out business plans. This discipline is going to
help in many ways so “don't skip this planning tool” To make it easier, here are six steps that
will produce a worthwhile plan:

1. Write out basic business concept.

2. Gather all the data on the feasibility and the specifics of business concept.

3. Focus and refine the concept based on the data.

4. Outline the specifics of business. Using a "what, where, why, how" approach might be
useful.

5. Put the plan into a compelling form so that it will not only give you insights and focus
but, at the same time, will become a valuable tool in dealing with business relationships
that will be very important.

6. Review the sample plans.

Does The Plan Include the Following Necessary Factors:

• A Sound Business Concept:

The single most common mistake made by entrepreneurs is not selecting the right
business initially. The best way to learn about your prospective business is to work for
someone else in that business before beginning your own. There can be a huge gap
between your concept of a fine business and reality.
• Understanding of Market:

A good way to test one’s understanding is to test market the product or service before
one starts. One thinks that one has a great kite that will capture the imagination of kite
fliers throughout the world? Then craft some of them and try selling them first.

• A Healthy, Growing and Stable Industry:

Remember that some of the great inventions of all time, like airplanes and cars, did not
result in economic benefit for many of those who tried to exploit these great advances.
Success comes to those who find businesses with great economics and not necessarily
great inventions or advances to mankind.

• Capable Management:

Look for people ideal peoples, who have good ethical values, have complementary skills
and are smarter. Plan to hire people who have good skills. Define unique ability and seek
out others who turn your weaknesses into strengths.

• Able Financial Control:

One will learn later the importance of becoming qualified in accounting, computer
software and cash flow management. Most entrepreneurs do not come from accounting
backgrounds and must go back to school to learn these skills.

• A Consistent Business Focus:

As a rule, people who specialize in a product or service will do better than people who do
not specialize. Focus on the efforts on something that one can do so well that others will
not be competing solely on the basis of price.

• A Mindset to Anticipate Change:

First plan should be written in pencil, not in ink. Keep a fluid mindset and be aggressive
in making revisions as warranted by changing circumstances and expanding knowledge.
Formulate (and Reformulate) Business Plan:
Here is a capsulation of his suggestions on how to formulate (and reformulate) business plan:

• Be flexible early in the process and keep it fluid. Don't commit too early. Expect first
plan to be provisional and subject to revision.

• Ask yourself if your experience or expertise gives you the right to an opinion on your
specific opportunity.

• Identify your potential deal killers: variables that are likely to prove fatal to the venture.

• Clearly identify what you see as the key drivers of success. What are you betting on
here?

• Raise money only in sufficient amount to finance the experiment or evaluation you next
envision, with a cushion for contingencies.

• Delay hiring key managers until initial rounds of experimentation have produced a stable
business model.

• At some point, take the plunge and test your product or service on a small scale in the
real world through customer research, test marketing, or prototypes.

• Test and refine your business model before expanding your operations.

Top Ten Do's and Don'ts:

TOP TEN DO'S

1. Prepare a complete business plan for any business you are considering.

2. Use the business plan templates furnished in each session.

3. Complete sections of your business plan as you proceed through the course.

4. Research (use search engines) to find business plans that are available on the Internet.

5. Package your business plan in an attractive kit as a selling tool.

6. Submit your business plan to experts in your intended business for their advice.

7. Spell out your strategies on how you intend to handle adversities.

 8. Spell out the strengths and weaknesses of your management team.

9. Include a monthly one-year cash flow projection.

10. Freely and frequently modify your business plans to account for changing conditions.

TOP TEN DON'TS

1. Be optimistic (on the low side) in estimating future costs.

2. Disregard or discount weaknesses in your plan. Spell them out.

3. Stress long-term projections. Better to focus on projections for your first year.

4. Depend entirely on the uniqueness of your business or the success of an invention.

5. Project yourself as someone you're not. Be brutally realistic.

6. Be everything to everybody. Highly focused specialists usually do best.

7. Proceed without adequate financial and accounting know-how.

8. Base your business plan on a wonderful concept. Test it first.

9. Skip the step of preparing a business plan before starting.

10. Be optimistic (on the high side) in estimating future sales.

 EXAMPLE OF DEVELOPING OF BUSINESS PLAN

Call Centers Business in Pakistan

Government of Pakistan has announced policy for the establishment of Call Centers in Pakistan
to provide service to offshore companies. The access to call centers is normally through 0800
Free Phone Numbers. The typical services are airline booking/confirmation; help line, banking,
hotels, reservations, medical prescription entries, insurance claims, data entries etc. The overseas
customers' calls are routed to call centers in Pakistan through VoIP technology where trained
operators respond to the inquiries of the customers. This service requires quick response, high
quality communication links and efficient handling without any noticeable time delay.

Following procedure is laid down for streamlining the provision, operation and
maintenance of these services in the country. PTCL will provide connectivity for establishment
of these Call Centers. Chief Engineer (PSP), PTCL HQs Islamabad, shall do registration
of Call Center Business. Chief Engineer (PSP) will also issue normal notification of registration
to all concerned in PTCL.

Interface
D.E (VAS) will act as one window for registration, issue of Demand Note for international
connectivity and provision of the facility.

Registration of demand
Application forms are available in the office of Divisional Engineer Value Added Services
(VAS) Karachi, Lahore and Islamabad. These forms are also available on WEBSITE of PTCL.
Photocopy of the form can also be used for registration. Applications will be submitted along-
with photocopies of the following documents:
 a NIC/Company registration

b National Tax No.

c Financial Status for last three years. (Please attach bank,

trade references and total return)

d Name of partner (s) with contract specifying requirements

and intent at foreign end.

Bandwidth
Operator of Call Center will be provided bandwidth on SEA-ME-WE-3 on half circuit basis. 2nd
half circuit will be arranged by the call center operator. Sanctioning procedure of clear
international circuit already exists in the SOP for ISPs/Data and Software exporters, same
procedure will be adopted. Tariff of software exporter will be applicable. Operator will enter into
lease agreement for call centers. DG (I/C) and G.Ms, OTR Islamabad/Karachi shall be
responsible for providing International Bandwidth from ITMC (Pakistan) to ITMC (Overseas).
Domestic Bandwidth from ITMC to Call Center premises shall be provided by the Local Region
of PTCL in coordination with Chief Engineer (M&O)-I and GM OFS Islamabad.

Provisioning of Facility
Initial demand note will be issued by D.E (VAS) who will coordinate for provisioning of the
facility on receipt of paid copy of Demand Note.

Billing
Subsequent billing for international connectivity will be done by Director International Accounts
PTCL H/Q Islamabad.
Customer Facilitation
Code 128 is available for registration of faults of ISP/Data/Software exporters at Karachi,
Lahore and Islamabad. DE IT Maintenance Support will be responsible for rectification of faults
and satisfactory service to the valued customers.
In case of regions, other than Karachi, Lahore & Islamabad, DE's nominated in each region by
the respective GM's to handle ISP/Data Software demand will also handle this demand following
above laid down procedure (list of all such DE's enclosed).
It will be ensured that the call center companies are not provided with connectivity between
the call centers and their affiliated subsidiaries dealing in software/Data export, ISPs or similar
business.
To facilitate the customers, complete book comprising policy, application forms copy of
agreement and tariff are attached which should be provided to all concerned officers.

Call Centre Business in Pakistan

Background
PTCL is eager to search for new opportunities for the betterment of services and generation of
additional revenue for the benefit of its shareholders. PTCL is not only interested in revenue
generation but also interested in generating new employment opportunities. The Computer
Telephony Integration (CTI) in the form of Information Technology would be generating plenty
of employment opportunities. The call center application is one of the products of Information
Technology applications. It has enormous growth potential due to unprecedented growth in
service industries of the developed countries. Being labor intensive, call center business is
becoming a major source of employment generation in developing countries like Pakistan and
India where the labor rates are comparatively low and educated class is fluent in English
language. Apart from employment opportunities, this business would become one of the major
sources of foreign exchange earning for the country as well.

2. Call center concept and configuration

The call center industry typically employs packet switched technology for both voice and data
communication. The access to call centers is normally through 0800 Free Phone Numbers. The
typical services are airline booking/confirmation, help line, banking, hotels, reservations,
medical prescription entries, insurance claims, data entries etc. The customer calls are routed to
a call center through VoIP technology to overseas destination where trained operators respond to
the inquiries of the customers. The queries of the customers are satisfied on-line through data
input on computer systems of the companies. The customer is oblivious to the fact that an
operator attending the call is located in an overseas destination. This service requires quick
response, high quality communication links and efficient handling without any noticeable time
delay.

3. PTCL positioning regarding facilitation of call center business

Optical fiber link are favored mode of transmission for call center application. The SEA-ME-
WE-3 connectivity to Pakistan provides the appropriate telecom access for this business.
The call center is not supposed to be connected in any manner with the telephone network of the
host country and as such does not adversely affect the international voice revenues (unless
misused). The Call Center business can be an attractive source of foreign exchange earning and
gives good opportunity to create jobs. PTCL feels that thousands of jobs will be created
in call center applications in next few years. While facilitating this business it has to be ensured
that the service is not misused in any manner for which service arrangement will have suitable
provisions.
Safeguards have been proposed and are included in the draft terms and conditions as under.

4. TERMS AND CONDITIONS OF INTERCONNECT AGREEMENT

FOR CALL CENTER OPERATORS

I. The applicant will provide company profile, requirements from PTCL and
business plans to PTCL.

II. The applicant will need to create a legal entity i.e. a company incorporated
in Pakistan. The company needs to be formed, and clearance obtained for name,
followed by registration with the Company Registrar Office.

III. Registration with the Pakistan Telecommunication Corporation Limited

for operating a call center. Registration will also include submission of
requirement for bandwidth, with time duration. The applicant shall require to
furnish a legal undertaking under the relevant clause
of Pakistan Telecommunication (reorganization) Act 1996 that the facility will
not be misused or used for any other purpose other than call center applications,
 failing which, strict action will be initiated by PTCL under the laws in force in
Pakistan.

IV. Bandwidth requirement: PTCL will provide the required bandwidth within
8 (eight) weeks of application and payment of service charges. This bandwidth
will be provided on available media i.e. satellite or optical fiber.

V. The applicant will provide details of the type of call center (Inbound,
outbound or blended).

VI. Interconnectivity with any PSTN or other network(s) in Pakistan is not

permitted.

VII. Separate earth station or any other arrangement for the bandwidth
termination at the call center bypassing PTCL international and national network
is not permitted.

VIII. Details of customers/service partner with contracts specifying clear

requirements and intent at the foreign end are to be provided with application.

IX. Severe penalties under the law of Pakistan will be imposed on

international call center found to be involved in any illegal activity including
termination of voice telephone traffic into the PSTN via any means.

X. All foreign exchange laws and regulations will be applicable. Details can
be obtained from the Ministry of Finance, Government of Pakistan.

XI. The same bandwidth tariffs as for software export promoters shall apply.

XII. Detailed Network plan including schematic diagrams with full equipment
details, specification, type of signaling/protocol, IPL details Pakistan/foreign end
locations are to be provided with the application in order to enable PTCL to
arrange for necessary interfacing of the call center with PTCL leased line
network. Any additional costs incurred by PTCL in bringing the call center on-
line will be settled through mutual agreement. Technical details including
schematic diagrams, specifications and supporting services, interfacing
requirements at the PTCL end shall be provided with the application. PTCL bills
payments by the CC operator within fifteen days of issuance of bill.