1.
MGT602
Theme-08 videos105-114
Business Idea and Business Plan

2.
Basic Questions to be
considered
 1. What is a Business Plan?
 2. Why Business Plan is prepared?
 3. For whom Business Plan is prepared?
 4. What is the extent of Business Plan?
 5. What are Features of a Business Plan?
 6.What is strategic arrangement of Business Plan? or
What are its Contents?

3.
Basic Questions to be
considered
 How a Business Plan shoud practically be prepared? Or
How to write a Business Plan?

4.
1. What is a Business Plan?
 Its made of two words
 a. Business
 b. Plan

5.
a. Business
 “Any economic activity undertaken to earn profit by
combining resources to deliver value to society in
response of whose unmet need it is started”

6.
b. Plan
 Product or Result of Planning
 What is Planning?
 All about:
 1. Where am I? ( Situation Analysis)
 2. Where do I want to go? (Destination)
 3. How will I get there? (Road Map/Way Out)

7.
b. Plan
 “A document which contains all the necessary
information required to start, run ,grow and shut down
the venture profitably”.
 “A mega document which contains different but related
documents covering different aspects of a new venture”.

8.
2. Why Business Plan is
prepared?
 It guides an entrepreneur to put his dream to practice.
 Model

9.
3. For whom Business Plan
is prepared?
 A. Internals:
 a. Entrepreneur
 b. Potential employees
 B. Externals
 a. Potential Customers
 b. Potential Suppliers
 c. Potential Investors

10.
4. What is the extent of
Business Plan?
 Following factors determine the extent of Business Plan:
 a. Entrepreneurs orientation, ability and preference
 b. Complexity of business
 c. Level of Competition
 d. Level of uncertainty
 e. Available time & money resources

11.
5. What are Features of a
Business Plan?
 Comprehensive
 Communication
 Guidance
 Formal Planning Process

12.
6.What is strategic
arrangement of Business
Plan? (Contents)
 A. Title/Cover Page
 B. Table of Contents
 C. Executive summary
 D. General Business Description
 E. Management Plan
 F. Total Product & Service Plan

13.
6.What is strategic
arrangement of Business
Plan? (Contents)
 G. Marketing Plan
 H. Operations & Production Plan
 i. Financial Plan
 J. Appendix

14.
A. Title/Cover Page
 Name of the venture
 Logo
 Nature of business
 Legal status//Type of ownership
 Name of key entrepreneur
 Amount of purposed investment
 Statement of confidentiality
 Location & address

15.
B. Table of Contents
 Things to remember:
 It must match with internal arrangement of the
document

16.
C. Executive summary
Things to remember:
 Prepared in the end attached in the beginning
 Must be originally written
 Review at least three times and test
 Must be paragraphed
 Length 2 to 3 pages

17.
D. General Business
Description
 a. Introduction & rationale of opportunity
 b. History of the venture if existing otherwise
background of the entrepreneurial team
 c. Industry analysis
 Demand
 Supply

18.
D. General Business
Description
 Number of players
 Growth trends
 Stage of development
 Major threats and opportunities
 d. SWOT of the venture
 e. Legal status of the business
 f. Legal issues and requirements
 Location (Is it a strategic location?)

19.
E. Management Plan
 1.Introduction of the entrepreneurial team
 a. Name and address
 b. Qualification
 c. Experience
 d. Current responsibilities & why
 2. Hierarchy
 3.Total number of jobs
 a. Job descriptions

20.
E. Management Plan
 b. Job specifications
 4.Human Resource Policies
 a. Hiring process
 b. Training & Development
 c. Evaluation and Reward System

21.
F. Total Product & Service
Plan
 Product Mix in detail

22.
G. Marketing Plan
 1.Analysis Phase
 a. Customer analysis
 b. Competitor analysis
 c. Supply chain analysis
 d. Sales forecasting

23.
G. Marketing Plan
 2. Action/Strategic phase
 a. Product Plan
 b. Pricing Plan
 c. Promotion Plan
 d. Placement Plan
3. Implementation & Control Phase

24.
H. Operations &
Production Plan
 1.Input/Supply/Purchase Plan
 a. List of raw materials
 b. List of suppliers and reason of selection
 c. Supply schedule & payment plan
 d. Storage facilities required
 e. Transportation system

25.
H. Operations &
Production Plan
 2. Production Plan
 a. Plant lay out
 b. Machines, tools and plant
 c. Capacity
 d. Facilities
 3. Total quality management system
 4. Out bound logistics plan

26.
i. Financial Plan
 1. How much finance is required?
 2. Where to get finance from?
 3. Utilization and recording of financial results?

27.
J. Appendix
 Resumes of Entrepreneurs
 Legal documents
 Pictures
 Location map