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    Ed Chapter 4

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    Amrutha Y
    The document discusses the meaning and purpose of preparing a business plan including maintaining focus, securing finance and fueling ambitions. It outlines the functions of a business plan and provides a format covering executive summary, management and organization, marketing plan, financial plan, industry analysis and other aspects.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Ed Chapter 4

    Uploaded by

    Amrutha Y
    14 views14 pages
    The document discusses the meaning and purpose of preparing a business plan including maintaining focus, securing finance and fueling ambitions. It outlines the functions of a business plan and provides a format covering executive summary, management and organization, marketing plan, financial plan, industry analysis and other aspects.

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    The document discusses the meaning and purpose of preparing a business plan including maintaining focus, securing finance and fueling ambitions. It outlines the functions of a business plan and provides a format covering executive summary, management and organization, marketing plan, financial plan, industry analysis and other aspects.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    14 views14 pages

    Ed Chapter 4

    Uploaded by

    Amrutha Y
    The document discusses the meaning and purpose of preparing a business plan including maintaining focus, securing finance and fueling ambitions. It outlines the functions of a business plan and provides a format covering executive summary, management and organization, marketing plan, financial plan, industry analysis and other aspects.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 14

    Preparation of Business

    Plan
    CHAPTER -4
    Meaning
    A business plan is a written description of the entrepreneur’s business future. It acts as
    guidelines for the successful business .

    Main Purposes of preparing a business plan :


    1) Maintaining focus
    2) Securing finance
    3) Fueling ambitions
    4) Enlightens executives
    Functions of Business plan
    1) It gives a clear guideline to the company’s operations by chalking its future course and
    devising strategy for success
    2) It attracts and gives a promising image to the lenders /investors
    3) It helps to overcome any uncertainty and helps in facing challenges
    4) It gives a clear cut picture about the future and provides time to time instructions
    Format of Business Plan
    A.Executive Summary
    ❖ General Company description : Name , ownership , legal entity, vision , mission , goals ,
    objectives
    ❖Business concept
    ❖Financial feature : Initial capital , working capital requirement
    ❖ Current business position
    ❖Major achievements : is applicable only to existing business
    B. Management and Organization
    ❖ List of founders
    ❖Organizational chart

    MR A –
    Manager
    C. Marketing Plan
    ➢ Product / service description
    ➢Product positioning
    ➢Pricing strategy
    ➢Promotion
    ➢Distribution channels
    D. Financial plan
    ❑ Start up expenses
    ❑Projected P/L
    ❑Projected Cash flows
    ❑Projected Balance sheet Financial statements
    ❑Break even calculation
    ❑Ratio analysis
    Industry analysis / Competitive analysis
    How big is the sector
    How many competitors are operating
    Is there a scope for innovation
    Technical aspects
    Social aspects
    Bibliography
    References
    Annexures
    Aspects of Business Plan
    I Financial Aspects
    ✓ Aim of financing : Fund flow statement – Sources – Equity ,debt ,loans ,investments
    ✓Allocation of funds – Application
    ✓Financial Statements
    ❑Projected P/L
    ❑Projected Cash flows
    ❑Projected Balance sheet
    ❑Break even calculation
    ❑Ratio analysis
    II Marketing Aspects
    ✓Target market
    ✓Introduce the product – Branding , image building , positioning
    ✓Pricing – Choose the correct pricing policy and justify
    ✓Promotion- Advertisement- indoor /outdoor ; Personal selling ;Public relations
    III Human resources aspect
    ❖Key personnel Resources
    ❖Resume
    ❖Duties & responsibilities
    ❖Salary, incentives…
    ❖Names of other collaborators

    ❖Human resource management strategy


    Skill components /expertise
    Performance management , Training & development ,leadership styles , Management practices ,
    retrenchment policies , discipline
    IV Technical aspects
    Technical feasibility
    ◦ Plant layout , design of structures
    ◦ Disposal of waste
    ◦ Pollution control measures
    ◦ Appropriate technology with affordability ,ease ,suitability
    ◦ Recent trends need to be followed – latest technologies
    V Social Aspects
    Produce quality goods /services
    Provide truthful data
    Safety of the product
    Restrict adulteration of products
    Improved safety packaging
    Optimum utilization of natural resources
    Equal opportunities to women ,trans gender
    Proper facilities to employees :- Education ,insurance, sponsorship ,recreation

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