Preparing Preparing Business PlanBusiness Plan

Business studies 6BS01

Unit : 1.3.7

Business Plan“Business Plan” is a “written document” that conveys the goals, promise and plan of a business to potential financiers and stakeholders .Also called as Project report

Objectives To give direction and control of firm’s growth

from start-up To obtain finance or investment funds To obtain initial contracts To attract key employees To assist expansion, mergers and acquisitions Helps to measure and control performance

Types of Business Plans

1. Summary Plan: 10 pagesUsed for small firms: get Bank Loan, gauge investor interest

2. The Full Plan: 25-40 pagesUsed for: Seeking a substantial amount of financing, looking for a Strategic Partner

Business Plan format

1.Title 2.Table of Contents3.Executive Summary4.Contents of the Plan

1. Company mission2. Product plan3. Market scope4. Marketing Plan5. Production/Operations Plan6. Personnel plan 7. Financial Plan8. Premises

5. Appendix

Main components

Business Plan

Product Market scope

Sources / Premises

Personnel

Production / Operations

Mission /Objectives

Finance

A typical Business Plan

History and current situation of company.Goals and objectives for the business.Company name , address

Detailed description of product or service.Outline stage of development and patents

Profile of target customers. Indicate current market size, trends, and seasonal patterns.Assess the nature of competition.Expected sales and market share

Mission and objectives

Product plan

Market scope

Continued

A typical Business Plan (Cont’d)

- Marketing strategy .(4 Ps) based on research- Describe marketing plan : Brand name , -advertising and promotion plans, Media- pricing -channels of distribution- Budgets

Marketing Plan

Source of raw materials

Location of office

Source and premises

Technology used– (manual, automatic, online). Equipment, land and space required , skill required

Production or Operations

Continued

A typical Business Plan (Cont’d)

-Shareholders and Board of Directors- Identify key Managers and their roles-Estimate the staff needed -Source of recruitment .

Personnel plan

Financial Plan

• Amount of financing required • how the funds will be used• potential return to the investorPrepare realistic financial projections:• Cash flow forecasts• profit and loss statements• Projected balance sheet• Projected Breakeven analysis