2. B.com (Prof)3rd Year. Faculty of
Commerce.
Sharda University. Sharda University.
Greater Noida. Greater Noida.
Acknowledgement
Thank people, you think, deserve your appreciation.
It was an interesting piece of work, given that I had just spent the past two weeks working
and finishing it. This essay is the result of my high degree of intensity and perseverance.
First of all, I would thank God, Almighty. I am what I am solely because of Him. My
parents and my faculty members who are an integral part of my life and have been a
constant source of inspiration.Their sacrifice is the reason as to why I have persevered with
considerable hard-work in every sphere of my life so far. In addition, I would like to thank
my classmates for their precious support and advice.
3. Abstract
This essay has set out to discuss the detail and design of a business plan with regards to the
various critical aspects that pertain to its design as well as implementation.
The essay would enable me to gain extensive insights into how business plan is designed
both efficiently and effectively. More vitally, the essay would allow me to grasp the
greatest majority of the course, ‘Entrepreneurship-Fundamentals’ since business planning
entails understanding of most of the topics covered in the aforementioned course.
I have conducted an extensive literature review to collect information the crucial facets of a
business plan. Such literature has included recent articles, internet sources, books and
sample business plans.
4. Introduction -:
Business Plan is a very important aspect in establishing a business or expanding a business.
It is very important thing for an entrepreneur. Business plan is a way to think and articulate
how business plan helps to achieve our goal in a business. The essay will help you to learn
and know how to make a proper business plan and its aspects for a business.
This essay is planned on the basis of the process, benefits, components, types and purpose
of a business plan.
Business plan helps to make a business successful and realistic, achievable and viable.
Role of the executive summary and the impact of executive summary on the management
and the investors, and the contents of the executive summary can be seen in the essay.
Oral presentation in business plan is very important. You can know the contents of a oral
Presentation in a Business Plan.
5. Contents -:
Entrepreneurship.
Entrepreneur.
Business Plan.
Primary Reasons for a Business Plan.
Purpose of Business Plan.
Components of Business Plan.
Types of business Plan.
Executive Summary in A business Plan.
Criteria of A sound Business Plan
Factors for a sound business Plan.
Who Reads and Why.
6. Parts of An oral Presentation of a Business Plan.
Conclusion.
Reference.
Entrepreneurship -:
Entrepreneurship is the act art of being an entrepreneur or one who takes an innovation or
introducing new things in business acumen in an effort to transform innovations into
economic goods.
Ricard Cantillion (1730) -: Entrepreneurship is defined as self –employment of any sort.
Entrepreneurs buy at certain prices in the present and sell at certain prices at prices in the
present and sell at uncertain prices in the future. The entrepreneur is a bearer of
uncertainty.
Gartner (1988) -: The creation of new organization.
The entrepreneur centre of Miami university of Ohio has an interesting definition of
entrepreneurship. Entrepreneurship is the process of identifying, developing and bringing a
vision of life. The vision may be a innovative idea, an opportunity, or simply a better way
to do. The end result of this process is the creation of new venture, formed under the
condition of risk and considerable uncertainty.
Entrepreneur -:
Entrepreneur is a person who exercises initiative by a organization, a venture to take
benefit of An opportunity and as the decision maker who decides what, how and how
much of a good or a Service will be produced.
Jean Baptiste Say (1816) -: The entrepreneur is the agent who unites all means of
production and .Who finds in the value of the products …the reestablishment of the entire
7. capital he employs, and The value of the wages, the interest and rent which he pays, as
well as profits belonging to him .
Israel Kirzner (1979) -: The entrepreneur recognizes and acts upon market opportunities.
The Entrepreneur is essentially an arbitrageur. In contrast to Schumpeter’s view point, the
entrepreneur moves the market towards equilibrium
Business Plan -:
In simple Terms a business plan is a document which:
Sets out yours company plans.
Shows how those plans can be achieved.
Demonstrates that the planned outcome meets the requirements of the reader.
A business Plan is a formal statement of a set of business goals, the reasons they are
attainable,
And the plan for reaching those goals .It may also contain background information about
the
Organisation or team attempting to reach these goals .
A business Plan is a road map that provides directions so a business can plan its future and
helps it avoid bumps in the road.
It is a written document that describes in detail how a new business is going to achieve its
goals and aim.
The business plan should describe your company and project concisely and accurately.
However, a business plan is also a selling document and the description should therefore
also be attractive.
8. Whilst the business plan should recognize that your project will not be a stationery target,
it should show the current status, current needs and future prospects of the project. The
plan should also emphasize the strengths of your company but at the same time be realistic
about its problem-and how you propose to overcome and minimize them.
Primary Reason For writing A Business Plan -:
The primary purpose of a business plan is to making a set of goals in a business.
1. Money.
The first and most common reasons retailers should write a business plan is funding.
Whether you’re a start up or have been in business from many years, it is highly likely at
some point your business will need money. Bankers, venture capitalist, angel investors and
Other lenders generally require a business plan before backing a business financially.
Having a well written business plan gives your business a good chance of securing the
money needed to operate or expand the business.
2. Set Goals.
A business Plan can do more than secure funding. It can serve as a road map or a blueprint
for what your business is to become. All your dreams and hope for your business are
outlined in the business plan. These goals will change and expand as your business grows,
but using the business plan as a tool can help you stay on track.
3. Daily Operations.
9. Within your business plan should be an outline of your daily operations of your business.
Store policies, staffing, customer service, and other operating procedures are written out
and intended to be used as a guide in your daily operations.
4. Foresee Problems.
The best way to determine, whether or not your business idea may work is to write a
Business plan.
Detailing your operations, marketing, management and financial will allow you to test the
feasibility of your business concept. Not only does this save time, it can
Save a lot of money if the business is destined or failed. Once you launch the business
Following the business plan, will allow you to see where your business is headed, where it
has been and any possible problems that may occur.
5. Education.
There is absolutely no better way to learn about your customer demographics, marketing.
Opportunities and other aspect of your retail business than to spend time creating a well-
research business plan.
6. Exit Strategies.
It may be hard to plan your exit while planning your beginning; however a successful
business plan includes long-range plans. While you can’t foresee everything the future has
in a store, it’s important to determine what will happen to the business if you decide to
move, experience a death, Divorce or other life altering event.
Purpose of a Business Plan -:
10. Any fund raising application will almost certainly require the submission of a business
plan. This applies equally to banks for overdrafts and loans, government departments for
grants, and venture capital investors for loans or equity. Many parent companies also
require subsidiaries to submit a business plan every year.
However, Business plan are not just for external purposes. They are also an important
planning document for a company’s own management. In this chapter we briefly discuss
what each of these potential readers of a business plan will want to see covered in order to
assess whether their own particular requirements have been satisfied.
Business Planning is done to provide direction and increase the probability for success
within any businesses. In agricultural business, planning may be even more vital because
of the inherent uncertainty associated with agricultural production. Business plan is done to
provide direction and increase the probability for success with any business.
The Main Purposes of a Business Plan -:
Maintaining Focus
Securing Financing
.
Fueling Ambitions.
Enlightening Executives.
Components of a Business Plan -:
Executive Summary.
Company Analysis.
Industry Analysis.
Customer Analysis.
Competitive Analysis.
11. Marketing Plan.
Operating Plan.
Management Plan.
Financial Plan.
Appendix.
Types of a Business Plan -:
Summary Business Plan -: A summary business plan is a type of business plan which has
the summary of the business plan detail and the detail of the duties and responsibilities and
work. It contains important dates and works to be formed on the basis of the business plan.
It is of 10-15 pages. It is for the new ventures at the early stage of development.
Operational Business Plan -: An Operational business plan is a type of internal business
plan that often provides employees with information like annual deadlines, managerial
team responsibilities, mile stones and important dates for the upcoming year. The
document is sort out of a road map for the upcoming year’s business calendar. It is of 40-
100 Pages. It is for the internal audience and it is a too for creating a blueprint for a new
venture operation.
Full Business Plan -: A full business plan is a written document and a detailed plan setting
out the objectives of a business ,the strategy and tactics planned to achieve them, and
expected profits usually over a period of three to ten years. It is to direct a business for
future. It is a document related to business. It is of 25-35 pages. It is for new ventures who
needs funds and financial services.
12. Executive Summary in a business Plan -:
The executive summary is a crucial part of a business plan. It is the synopsis of the main
points of your business plan, highlighting the entire features of the business plan. This is
usually the first part of your plan that prospective investors will read and it must be
interesting concise. Getting the executive summary right is crucial for ant business looking
for investment and funding. While the business plan’s executive summary is the first thing
the readers of your business plan see, it should be the last part of the business plan you
write.
A business plan’s executive summary includes -:
A description of your company, including your products and services.
Your mission statement.
Your business management.
The market and your customer.
Marketing and sales.
Your competition.
Your business’s operation.
Financial projections and plans.
Purpose for readers -:
The purpose of the executive summary is to explain the main features of your business in a
way that will make the reader want to learn more. Yet it must also include enough
information that investors can see the potential behind your business without having to
read the entire plan. The executive summary is an overview of your entire business plan
and should leave readers with the feeling that the business in competently run, and has
energy and enthusiasm.
Purpose For business -:
Writing the executive summary can help you with several elements of developing your
business plan. Writing the summary forces you to condense your business plan and focus
on the key issues in developing the business. The items covered in the executive summary
13. should be given in order of importance, so writing the summary will help you tu decide
which parts of the entire plan are most crucial, so you can prioritize. The summary can also
give you a foundation for writing the entire business plan; provide you with place to start
and an outline for your full plan.
Importance -:
The executive summary is the first plan of your business that people will read. For many
prospective investors, it is the only part of the plan they will read, as most investors will
base their initial decision on whether to read further based on the executive summary. A
well executive summary will allow the reader to grasp the main features of the business,
and leave the reader exited and wanting to learn more.
Criteria of a Sound Business Plan -:
- Is The Business Realistic?
Many Businesses have been built around unrealistic ideas, only to crash as fast as they
started. A business has to be realistic in what type of business it is, where it will be located,
and what profits will be expected. A business to turn water into gold is not realistic.
Putting ice cream parlour at the North Pole is not realistic. Expecting to make million
dollars in the first year is not realistic. Every business must be based upon a realistic goal
Is business achievable?
There is often confusion about something being realistic versus being achievable. a
business idea may pass the reality test, but may not be achievable. Example, starting a
computer manufacturing company is a realistic goal, however, it will take a billion of
dollars to start and there is a only million dollar available, then it is not achievable. This is
one of the setbacks to most startups business. The business idea is great, it’s realistic, but
there is no way to achieve it, under the current condition.
Is Business Viable?
Viability, in business world, has to do with longevity. A business can be realistic and
achievable but will it last for the long haul? If a business cannot sustain itself over a long
period of time, then the business may as well as not been started. The main reason for
starting a business is, hopefully, to provide a long term monetary gain. Even though there
14. is no guarantee of longevity in a business, if the best outlook is only one year, then maybe
it’s not such a good idea. After all, there is very little business that will make a profit
within the first year, so it would be better not to be started. So, Any business plan must be
based upon it being realistic, achievable and viable. If these three criteria do not pass the
test, then it will be best to rethink the business.
Factors of a Sound Business Plan -:
It fits the business needs.
It should be realistic. It can be implemented.
It should be specific. You can track result against plan.
It clearly defines responsibilities for implementation.
It clearly identifies assumptions.
It is communicated to the people who have to run it.
It gets people committed.
It’s kept alive by follow up and planning process.
Parts of an Oral Presentation of a Business Plan -:
1. Title Slide.
2. Problem.
3. Solution.
4. Business Model.
5. Managment Team.
6. Industry and Target market.
15. 7. Competetion.
8. Intelluctual Property.
9. Financial Projections.
10. Current status, amount of money, requested, and projected use of funds.
Who Reads It And What They Look For -:
The Management Team –:
The management looks the business plan for operation, management, planning and point
out the problems management is facing. Look the financial section of the plan and its
improvement. They are involved in writing and updating the business plan.
Investors and Lenders -:
Investors read the business plan for expressing interest in investing in the company.
Bankers and other lenders want to gauge the creditworthiness of company principles and
see what kind of co lateral and guarantees are available.
Managers and Employees -:
They read the business plan to know the process and criteria to work on the business plan.
They read the business plan to organise the business in proper way. They read for the
proper management of the work of the business plan.
Partners -:
Partners read the business plan to understand the objective and operating procedure to
achieve the aim or goal of a business plan. It will also help in their career growth. They
study for knowing the progress work and the lack in work related to the business pan.
16. Conclusion -:
This essay is for inspiration and providing detail of how a business plan is made and the
detail about entrepreneurship and entrepreneur.
The thrust of a business plan is brought into a model suggested
as a guide for thinking and practicing business and achieving the goals of a business.
Upcoming changes are very much required for establishing a business or expanding a
business through business plan. A business plan provides a platform for running a business
and establishment or expanding. A business plan sets out your business strategy to achieve
the goal. I have tried to explore the procedure of a business plan and it’s purpose so as to
take initiative towards a business. The essay is model is built to support learning and know
the process regarding business plan. A business plan is very important part of
entrepreneurship and for the entrepreneurs. It includes the benefits and process of business
plan. The detail about oral presentation and executive summary is also provided.
Reference -:
Google.com
Yahoo.com
Wiki.answers.com
