Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...
Presentation3
1.
2. CONCEPT OF A BUSINESS PLAN
• Written document prepared by entrepreneur that
describes all the relevant external and internal
elements involved in starting a new venture.
(Hlsrich and Pters)
• The plan is the direction and guide of the
entrepreneur as to what is to be done and how
to do it. It details out what is to be achieved over
a certain period of time.
3. – Business plan is also a map that would guide the
management team and its worker in achieving the
plans of the business.
– A business plan is also a document that convincingly
demonstrates the ability of business to sell its
products or services to make satisfactory profit and be
attractive to potential backers(David E. Gumpert).
– A business plan Is a selling document that conveys
the excitement and promise of your business to any
potential backers or stakeholders.
4. WHY THE NEED FOR A BUSINESS
PLAN
A. To project a general picture of the business project.
B. To serve as a guide in implementing the business or project.
C. To serve as major input to investment decision or major
expenditures.
D. To serve as reference or guide to policy formulation and
development.
E. To serve as guide for operational matters.
F. To serve as a reference for bank loan or financing purposes.
G. To determine/estimate the detail technical and financial
requirement.
H. To serve as an overall guide for the proponent or entrepreneur.
5. For David Gumpert, a business plan is a selling point.
With a business plan, you sell the entire company as
package.
These are the reasons:
1. To sell yourself on a business
2. To obtain a bank financing.
3. To obtain Investment funds.
4. To arrange strategic alliance.
5. To obtain large contracts.
6. To attract key employees.
7. To complete mergers and acquisition.
8. To motivate or focus your management team.
6. WRITING THE BUSINESS PLAN
For some business proponents, one of the
most difficult aspects of raising money is to get
story in formal or written form. Writing a
business plan effectively can spell out a big
difference between a success and failure in
raising a capital for the business and operating a
business itself. The financers will based 50% of
the decision to lend or to invest in a project on
the presentation it receives both oral and written.
7. A WELL-WRITTEN BUSINESS PLAN
A well- written business plan is one that
contain all the information necessary for the
financing source to make a decision even
without talking to the entrepreneur.
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9.
10. RULES TO OBSERVED
Rules in writing a Business Plan
1. Make it Neat
Appearance is important and it can reflect the
personality of the maker.
2. Make it Grammatically correct
Be sure to have the final version of the write up
corrected or edited by professional or qualified
editors.
11. 3. Make it Honest
Do not exaggerate or lie.
4. Written in Layman’s Language
Communicate in simple language and not in
technical jargon unless it is really called for.
5. Don’t over emphasize your product or
Business.
Product or service is just part of the business and
the business itself requires a lot of other
resources that is dependent from one another.
12. BUSINESS PLAN FORMAT
Components of a Business Plan
1. Marketing Plan
2. Technical Plan
3. Financial Plan
4. Organizational Plan
13. THE FINANCIAL PLAN
One of the common reasons why a written business
or project feasibility study is necessary or usually needed
is to convince a bank or directing company to finance the
business project. The financial plan is the most important
aspect of the business plan. This should include the:
A. Total amount of funding needed
B. Amount to be financed and equity component
C. Purpose of financing
D. Specific use of funds
E. Description of collateral
F. Historical financial record of the Business
G. Financial projection and assumptions
14. H.Schedule of major assets and liabilities
I. Management/ ownership structure
J. Financial status of owners/ stakeholders
K. Bank references
L. Personal references of company officers
M. Other supporting documents
15. THE PRINCIPLE OF DUE DILIGENCE
Due diligence is the name work investor or
financiers complete before a final investment
decision is reached.
16. Who should prepare the plan or
project study?
The business plan or project/feasibility study has
to be prepared by the entrepreneur himself
being the proponent of the business project.
17. THE ROLE OF CONSULTANTS
The business proponent may need the
services of consultants specially if the proposed
business project is highly technical in nature.
Both a management consultant a technical
consultant may be hired depending on the scale
of the project.
18. THANKYOU AND GODBLESS!!!
By:
Joanna Agustin
Kristel Albacete
Jennifer Aviso and
Angeline Karla Palisoc