BUSINESS PLAN PREPARATION

• Business plan (BP) forces to think and plan for future

• Helps to realize what you need for implementing the project
• Gives general idea of the resource requirement
• Shows feasibility and probability of achieving profit
• Gives an indication of likely returns and benefits

Composition of BP
• Assumptions / Estimates: For production, sales, raw material consumption,
manpower needs, prices, etc.
• Projections: Production, financial, sales, etc.
• Information: Technology, competition, prices, etc.
• Calculation: Cost, profitability, cash flow, etc.
• Documents: Machinery and RM price quotations, constitutional information such
as partnership deed etc., etc.

BUSINESS PLAN FORMAT

GENERAL
Name of the Firm:
Project:
Location:
Type of the organization: Proprietary/Partnership
Address:
Name of the Chief Promoter(s):
Birth Date:

EDUCATIONAL QUALIFICATIONS

Year of
SSC or Below Degree/Diploma Institute Major Subject
Passing
SPECIAL TRAINING
Training in Institute Duration Achievement/Remarks

WORK EXPERIENCE (Past and Present)

Organisation Position Nature of Work Duration

EDUCATIONAL QUALIFICATIONS
SSC or Below Degree/Diploma Institute Major Subject Year of
Passing

SPECIAL TRAINING
Training Institute Duration Achievement/Remarks

WORK EXPERIENCE (Past and Present)

Organisation Position Nature of Work Duration

(i) Promoter’s annual income : Rs. (last ear)

(ii) Assets Owned by the Promoter(s) : Movable Rs. ________
: Immovable Rs. ________
DETAILS OF THE PROPOSED PROJECT: Manufacturing / Servicing
LAND AND BUILDING
Sl. No. Particulars Area required Total value Remarks
1. Land
2. Building
Total

MACHINERIES / EQUIPMENTS
Sl.No. Description Nos. required Rate (Rs) Total value (Rs.)

MISC. FIXED ASSETS

Sl.No. Description Nos. required Rate (Rs) Total value (Rs.)

Total

PRELIMINARY AND PRE-OPERATIVE EXPENSES

Sl.No. Particulars Amount (Rs) Remarks
1. Interest during implementation

2. Establishment expenses

3. Start-up expenses

4. Misc. expenses

Total

WORKING CAPITAL
Sl.No Item Duration Total Value (Rs.)

Total
TOTAL COST OF THE PROJECT
SL.No. Particulars Value (Rs.)
1. Fixed Capital
(Total of item No. 2.1, 2.2,2.3)
2. Working Capital
(Total of item No.2.5)
3. Preliminary & Pre-operative expenses
(Total of item NO.2.4)
Total :

MEANS OF FINANCE
Sl.No. Particulars Amount (Rs.) Remarks
1. Own Investment
2. Term Loan
3. Working Capital loan
4. Any other source
Total

MARKET POTENTIAL
Present demand and supply of the product
Competition
Target clients / selected market area
Marketing strategy (USP)

MANUFACTURING PROCESS
Technical know-how availability
Step-by-Step description of the manufacturing process (R.M – F.G)
Attach process flow chart (if required)

PRODUCTION PROGRAMME
No. of working days per annum -
No. of working shifts (8 hrs) per day -
Installed capacity (annual) -
Utilised capacity (%):
I – Year -
II- Year -
III-Year -

Sr.No. Item(s) Quantity produced per Capacity utilization

year (%)

SALES REVENUE
Year Item(s) Quantity sold Rate per Sales realization
Per year Unit(Rs) (Rs)

Total

RAW MATERIALS (ANNUAL REQUIREMENT)

Sl. No. Item Quantity Rate (Rs) Total Value (Rs)

Total

UTILITIES
Sl. No. Particulars Annual Expenditure Remarks
(Rs.)
1. Power/Electricity
2. Water
3. Coal/oil/steam
4. Any other item
Total :

MAN POWER (Salaries / Wages)

Sl. No. Particulars No. Wages/Salaries Annual Expenses(Rs.)
Per month(Rs.)
1. Skills
2. Semi skilled
3. Unskilled
4. Office Staff
5. Any other
Total

REPAIRS AND MAINTENANCE

Sl. No. Particulars Amount(Rs.)

Total :
SELLING AND DISTRIBUTION EXPENSES
Sl. No. Particulars Amount (Rs) Remarks

1. Publicity
expenses
2. Travelling

3. Freight

4. Commission

5. Misc

Total :

DEPRECIATION
Sl. No. Type of asset Cost of asset Expected life Depreciation

PROFITABILITY PROJECTIONS
Sl. No Particulars Amount(Rs.)

1-Year 2-Year 3-Year 4-Year 5-Year

A. Sales realization
B. Cost of manufacturing/servicing
i) Raw materials
ii) Utilities
iii) Salaries / wages
iv) Repairs & maintenance
v) Selling & distribution expenses
vi) Administrative expenses
vii) Interest
viii) Rent
ix) Depreciation
x) Misc. expenses
Total
C. Gross Profit / loss (A-B)
D. Income Tax
E Net profit / loss
E1 Interest
E2 Net Profit + Interest
F Repayment for Interest and Principal

G Retained surplus(E2 – F)
H PAR = E2 / F

7:0 Calculation of BEP

8:0 Comments on viability of project

- BEP
- Capacity utilisation