Session 12-Business Plan

Business Plan
J.M.Pant
Mentor, Coach, Management Consultant and Trainer
+919811030273, jm.pant@gmail.com,
www.jemsconsultancy.com
J.M.Pant, Management Consultant, Trainer and Visiting Professor
+919811030273, jm.pant@gmail.com, www.jemsconsultancy.com
What is a Business Plan?
Written document describing Business plan is the road
all relevant internal and map or game plan
external elements and Where am I now?
strategies for starting a new
venture Where do I want to go?
It is an integration of How will I get there?
functional plans like
Marketing
Operations
Human resources
Finance
Addresses both short term
and long term decision
making for first three years of
operation
J.M.Pant, Mentor, Coach, Management Consultant, Trainer

Why Business Plan?
Helps determine the viability of the venture in
the target market
Provides guidance to entrepreneur in
organising and planning various business
activities
Serves as an important tool for financing
Can help to entice investors
Can be used as a road map during project

Who Should Write The Business
Plan?
The Entrepreneur has to prepare the
business plan
May consult
Web resources
Consultants
Government supported institutions

For Whom Is The Business Plan
Made?
Entrepreneurs
Banks, Financial institutions
Shareholders
Venture Capitalist, Angel investors
Private investors
Employees
Consultants, Suppliers, Customers

For Whom Is The Business Plan
Made?
Who is the target audience can affect its
actual content and focus.
Three perspectives:
Entrepreneurs perspective
Marketing perspective
Investors perspective

Structure Of A Business Plan
1. Introductory page
1. Name and address of business
2. Name and address of promoters
3. Nature of business
4. Statement of financing needed
5. Statement of confidentiality of report
2. Executive Summary
1. Few pages summarising the complete business
plan
2. Should be prepared after total plan is written

3. Promoters
1. Background of the promoters, their track record. Resumes
of founders and key managers.
4. The Opportunity - Description of Venture
1. Brief particulars
2. What is the product or service?
3. Features, applications, users, benefits to customer
4. SWOT Analysis
5. Benchmarking with other projects
6. Technological aspects
7. Size of business

5. Market Information and market feasibility aspects-
Market Demand and Industry/ Business analysis.
How will you market your products? What is the
market for such products or services? Who are the
competitors? Who will be your customers to start
with?
1. What is the USP?
1. What is your uniqueness? Why the product or
service is suitable and what advantages it offers
over existing products or services?
2. Why will the customers buy from you? What is the
differentiating point?
3. What is your sustainable competitive advantage?
5. Market Demand and Industry/ Business analysis
2. Market demand and supply gap
1. Future outlook and trends domestic and globally,
Analysis of market environment, international trends
2. Analysis of competitors-existing and potential,
including overseas, defensive/aggressive strategy.
Beware of competitors with lots of money as they have
resources to fight hard and long.
3. Estimated market demand, market size
4. Estimated supply
5. Demand-supply gap
6. Estimated market share and sales
7. Likely customers

6. Marketing Strategy
1. Market segmentation
2. Target market
3. Positioning
4. Marketing Mix 7Ps covering Product quality,
product design, type, style, service, customer
benefits, Pricing, Promotion, advertising, PR,
sales force, Distribution channels and so on.
5. Entry strategy, Timing
6. Growth strategy
Advertising and PR strategy
1. Communication and marketing tools
2. Advertising to create sales. Create your
advertising philosophy, budget and plan
3. Link it to your marketing strategy
4. Options including public media for free
advertising

Sales and distribution strategy
1. Work with outside agents or have your own sales
and distribution system
2. Think about ease of reaching customers, size of
orders, number of customers, need for customer
support
3. If depending on only few customers for most of
your sales, you must plan how you will manage
that relationship profitably

7. Technical Feasibility, Technical
Information and Operations Plan
1. Flow process
2. Quality of product or service, desired
performance
3. Technology to be used, benefits of technology,
technology threats, substitutes, obsolescence
4. Technical arrangements
1. Cost of technology
2. Performance commitments
3. Track record of technology supplier
5. Consultants employed
7. Technical Feasibility, Technical Information
and Operations Plan
7. Capacity, Product or service mix
8. Location
9. Space required
10. Layout
11. Equipment required and their specifications
12. Land and building requirement
13. Manpower requirement
14. Material requirement
15. Energy, gas, water, fuel etc requirements
16. Project Implementation schedule

8. Organisation Plan
1. Organisation structure
2. Management team who are the people? For
example, CEO, COO, CTO, CFO, Chief Marketing
1. Experience, skills, knowledge, talents and integrity
2. Synopsis of each persons background with special
mention of successes in managing high growth projects
3. Organization structure, reporting relationships, roles and
responsibilities
4. Board of Directors
5. Recruitment policy
6. Incentives

9. Financial Plan
1. Cost of project, investment outlay
2. Working capital requirement
3. Means of finance/Source of funds
4. Estimates of performance projections for 5 to
10 years: Sales, Cost of operations and
Profitability
5. Cash flow projections (5 to 10 years)
6. Balance sheet projections (5 to 10 years)
7. Break even analysis

9. Financial Plan
1. Profitability ratios
2. Payback
3. IRR
4. EPS
5. DSCR
6. Loan repayment schedule
7. Dividends payout schedule

10. Assessment of Risk
1. Evaluate weakness of business
2. New Technologies
3. Contingency plans
11. Appendix
1. Spread sheets and financial exhibits
2. Letters of intent from customers
3. Market research data
4. Lease agreements and contracts
5. Any other supporting data


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Business Plan

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

J.M.Pant, Mentor, Coach, Management Consultant, Trainer

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