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Entrepreneurship Development: Topic Business Plan - Introduction

This document provides an overview of key components of a business plan, including an introduction, definition, and importance. It discusses how a business plan can help establish feasibility, provide focus, enable foresight, and help raise capital for a new business. The document then outlines several important features that should be included in a good business plan, such as an executive summary, business description, market strategies, competitive analysis, design and development plan, operations and management plan, and financial factors. Developing a thorough business plan can help guide an entrepreneur and their new business for success.

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Dr.Sree Lakshmi K
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674 views11 pages

Entrepreneurship Development: Topic Business Plan - Introduction

This document provides an overview of key components of a business plan, including an introduction, definition, and importance. It discusses how a business plan can help establish feasibility, provide focus, enable foresight, and help raise capital for a new business. The document then outlines several important features that should be included in a good business plan, such as an executive summary, business description, market strategies, competitive analysis, design and development plan, operations and management plan, and financial factors. Developing a thorough business plan can help guide an entrepreneur and their new business for success.

Uploaded by

Dr.Sree Lakshmi K
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Entrepreneurship

Development
Topic
Business Plan -Introduction
Introduction
• A business plan is also a road map that provides directions so a business
can plan its future and helps it avoid bumps in the road.
• The time you spend making your business plan thorough and accurate,
and keeping it up-to-date, is an investment that pays big dividends in the
long term
Business Plan: Definition
• “A written document describing the nature of the business, the
sales and marketing strategy, and the financial background, and
containing a projected profit and loss statement”
Importance: Why Use a Business Plan?
• Owing to the following benefits of a well-researched and comprehensive
business plan, preparing one is highly recommended, but not a mandate.
1. Feasibility
Entrepreneurs use a business plan to understand the feasibility of a particular
idea. It is important to contextualize the worth of the proposed product or
service in the current market before committing resources such as time and
money. It helps to expand the otherwise limited view of a passionate
innovator-turned-entrepreneur.
2. Focusing device
• Formulating a concrete plan of action enables an organized manner of conducting
business and reduces the possibility of losses due to uncalculated risks. Business
plans act as reference tools for management and employees as they solidify the
flow of communication, authority, and task allocation.
3. Foresight
• The process of preparing a business plan often creates many unintended yet
desired results. It functions on the principle of foresight as it helps one realize
future hurdles and challenges that aren’t explicit. It also brings a variety of
perspectives on the forefront, eventually leading to a more comprehensive future
plan of action.
Importance: Why Use a Business Plan?
4. Raising capital
• A business plan is an effective way of communicating with potential
investors, and the level of expertise and time used in preparing a business
plan also gives professional credibility to entrepreneurs. It analyses and
predicts the chances of success for the investor and helps to raise capital.
Features of a Good Business Plan
• 1. Executive Summary
The executive summary functions as a reading guide, as it highlights the key
aspects of the plan and gives structure to the document. It must describe
ownership and history of formation. It is an abstract of the entire plan,
describes the mission statement of the organization, and presents an
optimistic view about the product/service/concept.
2. Business Description
• This section presents the mission and vision of an organization. Business descriptions
provide the concept of one’s place in the market and its benefits to future customers. It must
include key milestones, tasks, and assumptions, popularly known as MAT.
• Big ideas are redundant without specifics that can be tracked. Fundamental questions to be
answered include:
• Who are you?
• What is the product or service, and what are its differentiating characteristics?
• Where is the opportunity located?
• When will you start implementing your plan and expects cash flows or profits?
• Why should customers choose your company?
• How do you plan to run the business in terms of structure and regulatory compliance?
3. Market Strategies
• The market strategies section presents the target consumer group and the
strategies needed to tap into it. It requires meticulous analysis of all aspects of the
market, such as demography, cultural norms, environmental standards, resource
availability, prices, distribution channels, etc.
4. Competitive Analysis
• The competitive analysis section aims to understand the entry barriers one could
face due to other companies in the same or complementary sectors. The strengths
of existing companies could be co-opted into one’s strategy, and the weaknesses
of existing product development cycles could be exploited to gain a distinct
advantage.
5. Design and Development Plan

It outlines the technical details of the product and its development cycle within the realm of
production. In the sphere of circulation, it focuses on marketing and the overall budget required to
reach organizational objectives.

6. Operations and Management Plan


The operations and management plan describes the cycle of business functions needed for survival and
growth. It includes management functions such as task division, hierarchy, employee recruitment, and
operational functions such as the logistics of the value chain, distribution, and other capital and
expense requirements. The managers’ backgrounds must also be briefly included.

7. Financial Factors
The financials section should include the company’s balance sheet and cash flow projections. Financial
data is imperative to provide credibility to any assertions or claims made about the future profitability
of the business. The aim is to provide an accurate idea of the company’s value and ability to bear
operational costs and earn profits.

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