The document discusses managerial skills and the business planning process. It begins by outlining the four main types of managerial skills: conceptual skills, human skills, technical skills, and communication skills. It then describes the seven steps of decision making: diagnosing problems, analyzing problems, generating alternatives, evaluating alternatives, reaching decisions, choosing implementation strategies, and monitoring and evaluating. The remainder of the document focuses on building a business plan, outlining the seven essential sections including executive summary, company description, market analysis, organization and management, marketing plan, funding request, and financial projections.
2. CHAPTER
OUTLINE
Managerial Skills
Business Plan
Managers 4 types of skills
Steps for decision making
How manager manage time
Steps to Ethical Decision Making
Business Ethics and Social Responsibility
:
Responsibility to Customers
Responsibility to Employees
Responsibility to Stockholders
Responsibility to Creditors
Responsibility to Environment
3. Building a Business Plan
Create a business plan as the first step on your
path to business success
4. What is a Business Plan?
A business plan is a written document that defines the goals and
objectives of your business and describes how you will attain those
goals.
A business plan is worth your considerable investment of time, effort,
and energy.
A business plan sets objectives, defines budgets, engages partners,
and anticipates problems before they occur.
5. 10 Reasons Why You Need a Strong Business Plan
1. To attract investors.
2. To see if your business ideas will work.
3. To outline each area of the business.
4. To set up milestones.
5. To learn about the market you plan to enter.
6. To secure additional funding or loans.
7. To determine your financial needs.
8. To attract top-level people.
9. To monitor your business and measure success.
10. To devise contingency plans.
6. Contents of Business Plan
Business plans are critical for the success of a company.
Different businesses will require different types of business plans.
All business plans have some essential sections that explain the core aspects of
the company.
In order to help your company have a better chance of gaining interest and
investors, a business plan should include seven essential sections:
1. Executive Summary
2. Company Description
3. Market and Competitive Analysis
4. Organization and Management
5. Marketing Plan and Sales Strategy
6. Funding Request
7. Financial Projections
Be aware of and avoid sabotaging your business plan.
7. Part 1: Executive Summary
The executive summary is generally a 3-5 page introduction to your
Business Plan.
This section is critical because many individuals (including venture
capitalists) only read the summary.
The executive summary includes:
A paragraph that introduces your business.
Your business name and location.
A brief explanation of customer needs and your products or services.
The ways that the product or service meets or exceeds the customer needs.
An introduction of the team that will execute the Business Plan.
Subsequent paragraphs that provide key details about your business,
including projected sales and profits, unit sales, profitability, and keys to
success.
Visuals that highlight important information, including market share projections
and customer demand charts.
8. Part 2: Company Description
The company description provides details about the business
concept and shows evidence that the product or service is viable and
capable of fulfilling a customer's particular needs.
The company description:
Articulates your company’s vision, how you plan to meet the unique needs
of your customers, and your plan for financial success.
Provides results from feasibility studies you have conducted for your
products or services.
Discusses diagnostics sessions you had with prospective customers for
your services.
Defines your value proposition and how you differ from your competitors.
9. Part 3: Market and Competitive Analysis
The market analysis includes detailed knowledge you’ve gained through
researching the market that best fits your product or service. This helps
define your market strategy and position your business to obtain its
share of sales.
The market analysis section:
Defines your target market and target customers.
Projects your market share.
Positions your products and services.
Discusses pricing and promotions.
Identifies communication, sales, and distribution channels.
Discusses competitors in your target market, including:
Competitor product or service offerings and strategies.
Competitor strengths and weaknesses.
Competitor market share.
Indirect or secondary competitors.
10. Part 4: Organization and Management
The management team section includes:
Organizational Structure: Defines the ownership structure and outlines responsibilities
and decision-making powers. Provides a basis for projected operating expenses,
personnel expenses and overhead expenses.
Management Team: Provides resumes and biographical data of management and key
employees, including qualifications, experiences, or outstanding skills, which could add a
competitive edge to the image of the business.
Working Structure: Defines how your management team will operate within your
defined organizational structure.
Expertise: Discusses the business expertise of your management and senior team. You
may also include special knowledge of budget control, personnel management, public
relations, and strategic planning.
Development Plan: Depicts how you plan to improve your company’s overall skills or
expertise, such as training or continuing education.
Personnel Plan: States current and future staffing requirements and costs.
11. Part 5: Marketing Plan and Sales Strategy
(Slide 1 of 2)
The marketing plan and sales strategy section details how your product
or service will be delivered to customers, the cost to promote and
distribute your product or service, and how you will measure the
effectiveness of your methods.
The marketing plan covers the five “P’s”:
Product: Defines your product or service and how it differs from the competition.
Price: Details how you price your product competitively and includes variable
costs, fixed costs, and break-even point.
Place: Explains where you plan to sell your product or service, e.g., Internet,
direct sales, government contracts, etc.
Promotion: Provides the methods you will use to advertise your products and
services.
People: Discusses the qualifications of your sales team or customer service
representatives.
12. Part 5: Marketing Plan and Sales Strategy
(Slide 2 of 2)
The sales strategy:
Sales Force:
Will you use an internal sales team or independent representatives?
How will they be trained? They must know your value proposition forward and
backward.
How will they be compensated? Bonus structure?
Sales Activities:
Prioritize your prospects.
Determine how many sales calls you will make in a day, week, month, etc.
Determine how many sales calls it will take before you make a sale, the
average dollar amount per sale , and the average dollar amount per client.
13. Part 6: Funding Request
This section covers whether you are investing your own money,
seeking a loan, or outside investment (equity).
Basic questions you should answer include:
What is the total funding required?
How will the loan or investment be used?
How will the loan or investment make the business more profitable?
When will the loan be repaid?
If you are seeking an equity investment:
What percent of your company are you willing to sell to an investor?
What rate of return is possible for the investor? (Note: If you are seeking private
investors, consult legal counsel to ensure compliance with securities laws.)
14. Part 7: Financial Projections
(Slide 1 of 2)
The financial plan translates your company's goals into specific financial
targets.
The financial plan section:
Clearly defines what a successful outcome entails. The plan isn't merely a
prediction; it implies a commitment to making the targeted results happen and
establishes milestones for gauging progress.
Provides you with a vital feedback-and-control tool. Variances from
projections provide early warnings of problems. When variances occur, the
plan can provide a framework for determining the financial impact and the
effects of various corrective actions.
Anticipate problems. If rapid growth creates a cash shortage due to
investment in receivables and inventory, the forecast should show this. If next
year's projections depend on certain milestones this year, the assumptions
should spell this out.
15. Part 7: Financial Projections
(Slide 2 of 2)
The financial projections plan is the most essential part of your business plan. It
shows investors how much money you need to cover start-up costs, how the
money will be spent, when you will repay the money, and your timeframe for
being profitable.
New businesses with no operating history will refer to financial statements as
"pro forma," meaning projected, as shown below.
Some elements of the financial projections plan include:
Important Assumptions
Key Financial Indicators
Break-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios
Long-term Plan
16. MANAGERIAL SKILLS
Do you have all
required managerial
skills to manage your
own company? What
do you think about your
management skills?
Can you be a real
manager with all skills
necessary for you and
your company?
17. Managerial Skills
Managerial skills are
the knowledge and
ability of the
individuals in a
managerial position to
fulfill some specific
management activities
or tasks. This
knowledge and ability
can be learned and
practiced. However,
they also can be
acquired through
practical
According to American social and organizational
psychologist Robert Katz, the three basic types of
management skills include:
Conceptual Skills
Human Skills
TechnicalSkills
18. Conceptual Skills
Conceptual skill is the
ability to visualise (see)
the organisation as a
whole.
It present knowledge or
ability of a manager for
more abstract thinking.
That means he can
easily see the whole
through analysis and
diagnosis of different
states.
In such a way they
IT
Includes Analytical, Creative and Initiative skills.
Helps the manager to identify the causes of the
problems and not the symptoms.
Helps the Manager to solve the problems for the
benefit of the entire organisation.
Helps the manager to fix goals for the whole
organisation and to plan for every situation
Conceptual skills are mostly required by the top le
vel
management because they spend more time in pla
nning
and organizing and problem solving.
19. As a first, a company includes more business
elements or functions as selling, marketing,
finance, production, etc. All these business
elements have different goals even
completely opposed goals.Think about
marketing and production as a business
function and their specific goals.You’ll see
the essential difference.The conceptual
skills will help managers to look outside their
department’s goals. So, they will make
decisions that will satisfy overall business
goals.
Why managers
need these
conceptual skills?
20. Human & Interpersonal
Skills
Human or
interpersonal manageme
nt skills present a
manager’s knowledge
and ability to work with
people.
One of the most
critical management
tasks is to work with
people.
Without people, there will
not be a need for the
IT
It helps the managers to understand, communicate
and work with others.
It also helps the managers to lead, motivate and
develop team spirit.
This is so, since all managers have to interact and
work with people.
They have to know how to motivate, communicate,
lead, inspire and trust subordinates.
Human relations skills are required by all manager
s at all
levels of management.
21. Technical Skill
sA technical skill is the
ability to perform the
given job.
It involve skills that give
the managers the ability
and the knowledge to
use a variety of
techniques to achieve
their objectives.
Technical skills help the managers to use different
machines and tools.
It also helps them to use various procedures and
techniques.
This is because they are in charge of the actual
operations.
Engineers, doctors, CA musicians and production
manager need such technical skills
The lower level managers require more technical s
kills.
As we go through a hierarchy from the bottom to hi
gher
levels, the technical skills lose their importance.
22. Communication
Skills
Ability to make proper
communication.
Communication skills are required equally at all
three levels of management.
A manager must be able to communicate the plans
and policies to the workers.
Similarly, he must listen and solve the problems of
the workers.
He must encourage a free-flow of communication in
the organisation.
Administrative S
kills
Administrative skills are required at the top-level
management.
The top-level managers should know how to make
plans and policies.They should also know how to get
the work done.
They should be able to co-ordinate different
activities of the organisation.
They should also be able to control the full
organisation.
23. Leadership Skill
s
Leadership skill is the ability to influence human
behaviour.
A manager requires leadership skills to motivate the
workers.
These skills help the Manager to get the work done
through the workers.
Decision Making
Skills
Decision-making skills are required at all levels of
management.
However, it is required more at the top-level of
management.
A manager must be able to take quick and correct
decisions.
He must also be able to implement his decision wisely.
The success or failure of a manager depends upon
the correctness of his decisions
25. Decisi
on
Makin
g
The process through which managers
identify and resolve problems and
capitalize on opportunities.
It is the process of selecting best
course of action out of many available
alternatives.
Solving the organizational problems
by choosing a specific course of action
28. Step 1:
Diagnosing
Problems
Problems arise where there is deviation
between actual and planned
performances
Reasons of deviation may be internal or
external factors
Managers need to monitor the
environment, symptoms and the root
cause of problem.
Compare actual performance with
planned and study the factors affecting
regular work.
Managerial skills, intelligence, experience
and judgment can be used to reach the
conclusion
29. Step 2:
Analysis of
Problems
Accumulate facts, data and
information related to problems
Decision maker should study the main
reasons of problem and their impact on
short as well as long term
organizational performance
Quick analysis of problem by
accumulating all related facts, data
and information is essential to find the
actual source of problem
30. Step 3:
Generating
Alternative
s
Once an opportunity has been identified or a
problem diagnosed correctly, a manager
develops various ways to solve the problem
and achieve objectives.
The alternatives can be standard and obvious
as well as innovative and unique.
Sources of Identifying Alternatives:
Past record, Opinions,Views of Experts,
Customers, Subordinates,Creditor and
other environmental components
31. Step 4:
Evaluating
Alternative
s
The fourth step in the decision-making process
involves determining the value or adequacy of
the alternatives generated.
Consideration taken in the evaluation
Is the alternatives feasibility in terms of cost,
time legal constrains, human and other
resources
Consequences of alternatives is satisfactory
for solving problems
Consequences of alternatives is are favourable
to the the organization
Predetermined decision criteria such as the
quality desired, anticipated costs, benefits,
uncertainties, and risks of each alternative
may be used in the evaluation process.
32. Step 5:
Reaching
to the
Decisions
(Selection of
best course of
action)
Managers need to consider both short term
and long term impact of alternatives.
Approaches
Experience, Experimentation, R&A,
Personal judgement
Managers need to consider above approach to
select best course of action
Decision maker should make final choice
analyzing the volume of benefit and cost.
33. Step 6:
Choosing
Implement
ation
Strategies
The bridge between reaching a decision and
evaluating the results is the implementation
phase of the decision-making process.
The keys to effective implementation are:
Communication and delegation of
authority to the subordinates
Sensitivity to those who will be affected by
the decision.
Proper planning and consideration of the
resources necessary to carry out the
decision.
34. Step 7:
Monitoring
and
Evaluating
No decision-making process is complete until
the impact of the decision has been evaluated.
Managers need to analyze whether the
alternatives implemented will fulfil the
objectives or not.
Managers must observe the impact of the
decision as objectively as possible and take
further corrective action if it becomes
necessary.
Modification in procedures and techniques can
be applied if it becomes necessary.
36. How
Manager
Manages
Time
“Time is the
scarcest
resource; and
unless it is
Think about it for a moment: if you don’t manage
time nothing gets managed!
BECAUSE
You can’t buy it. In the sense that time is distributed
equally to all, each of us gets 24 hours a day.
You can’t stop it.Time marches on, you can’t hold time
up to take a bit longer.
You can’t save it.Time can’t be saved to be used up at
another time when you might feel you need it more.
“Yesterday is history, tomorrow is a mystery, and
today is a gift; that’s why they call it the present.”
Eleanor Roosevelt
Time is precious, particularly when it comes to
running a small business.Yet there are never more
than 24 hours in a day.
39. Time
Managem
ent Tips
Don’t let
productivity slip
away. You can
excel at time
management with
just a little
Set SMART goals
S=SPECIFIC M=MEASURABLE
A=ACHIEVABLE R=REALISTIC
T=TIME BOUNDED
Have a PRIORITIZE list, and follow it
Create a to-do list, prioritize it and follow it as much as
you possibly can.
Address the urgent
Accomplish what you can early
Attach deadlines to things you delay
Focus
Don’t let any distractions keep you from accomplishing
everything you set out to do.
Make a “do not disturb” sign and hang it on your door
when it’s crunch time.
40. Time
Managem
ent Tips
Don’t let
productivity slip
away. You can
excel at time
management with
just a little
Find a system that works for you.
Everyone works in a certain way.You have to find the system
that works well for you.
Don’t try different systems because you hear good things
about them; you’ll only end up confusing yourself and your
team.
Delegate your workload.
Delegate your work with your team so that everyone has
something to do
Use technology to your advantage.
Don’t forget that you can set events on your phone or create
a system that helps with customer issues.
You can also use online guidance systems to help reduce the
number of customer service calls and allow your team to be
more productive
Use your waiting time
Use it for Correspondence, letters, memos, reports and News.
