The document outlines the key components of an effective business plan, including definitions of the business, market research and analysis, development, manufacturing, distribution, organizational plans, development schedule, and financial plan. It discusses that planning is an important activity that involves deciding what will be done, who will do it, the standards and timeline. An effective business plan contains operational and financial details and is used to help management, attract investors, and serve as a legal document to raise funds.

2. Objectives
 What is a business plan?
 Purposes of the business plan
 Parts of business plan
 Definition of the business
 Market Research and Analysis
 Development Plan
 Manufacturing Plan
 The Distribution and service plan
 The Organizational Plan
 The Development Schedule
 The Financial Plan

3. Planning
-is a very important
activity which involves
“deciding what will be
done , who will do it,
where, when and how
it will be done, and
the standards by
which it be done

4. Business Plan
 Is a document
containing “a written
summary of the
proposed venture ,
its operational and
financial details, and
its manager’s skills
and abilities

5. Various Uses of Business Plan
To help the firm’s Management
To attract Potential Investors
To serve as a legal document with
which funds are raised

6. Components of a Business Plan by
William Osgood
1.Definition of the business
2.Market Research and analysis
3.Development plan
4.Manufacturing plan
5.Distribution and service plan
6.Organizational plan
7.Development schedule
8.Financial plan

7. Components of a Business Plan
Definition of the Business
1.The nature of the company
2.Products or services offered by the
company
3.The nature of the industry
4.Opportunities available
5.The rationale for the creation of the
company
6.The rationale for catering to a specific

8. Components of a Business Plan
Market Research and Analysis
1.Situational analysis and target
market
2.Marketing objectives and goals
3.Marketing strategies
4.Marketing tactics
5.Schedule and budget

9. Components of a Business Plan
Market Research and Analysis
6.Financial data and control
-sales estimates on a monthly basis
-cash flow requirement
-break-even analysis
-estimate of inventory turnover
-measures of profitability

10. Components of a Business Plan
Development Plan

11. Components of a Business Plan
Manufacturing Plan
Includes:
-Manufacturing facilities -Equipment Costs
-Location -Labor requirements
-Size
-Rentals
-Purchases
-Required equipment
-Inventory req. and control

12. Components of a Business Plan
The Distribution and Service Plan
The distribution and service plan provides the
steps required to effectively bring the product
or service to the market. Pricing, sales, service
policies, market penetration and timing are
indicated. This also includes specific statement
about and when anticipated events are to take
place and assignment of specific
responsibilities to specific individuals

13. Components of a Business Plan
The Organizational Plan

14. Components of a Business Plan
The Development Schedule

15. Components of a Business Plan
The Financial Plan
The Financial plan is a document indicating
the financial requirement necessary to
support a given set of plan in other areas.
Its main components are:
-Projected income statement
-cash budget -purchasing budget
-personnel budget -break-even analysis
-production budget

16. Components of Financial Plan
Projected Income Statement

17. Components of Financial Plan
Cash Budget

18. Components of Financial Plan
Personnel Budget

19. Components of Financial Plan
Production Budget

20. Components of Financial Plan
Purchasing Budget

21. Components of Financial Plan
Break-even Analysis