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How to prepare business plan is what is shown in these slides; Hints for preparing marketing, operations, financial plan and also highlights the risk areas to be covered in the plan, the questions the plan should answer along with milestones etc.
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Developing a Business Plan
Business Plan
Business Plan “ is a written document that is spells out where you are, where want to be and how want to get there”
It is also called “Project Report”, “Venture Plan”, “Loan Proposal” , “Techno Economical Feasibility Study” and so forth.
Elements of Business PlanExecutive SummaryBusiness DescriptionMarketing OperationsManagementFinancial Critical RiskHarvest StrategyMilestone Schedule
Hints for writing Executive Summaries
No More than 3 pages What, How, Where , When –
summarized Do it at last after finishing the plan.
Hints for writing Business Description
Name of your businessA industry background and history
of your companyThe potential of the ventureUnique feature of this ventureForm of your business – like sole
proprietorship, partnership etc.
Hints for writing Marketing
Give realistic sales projection.Mention how you want to address the
competition and how you will succeed in your venture.
Show market studiesIdentify target market, market position and
market share.Pricing strategy to capture market shareMarketing Mix plan and the cost.
Hints for writing Operations
Describe the location advantage ( like tax benefits, resources abundance, labor availability),
List of infrastructure and machines needed
Describe the supply and logistics advantages
Provide operational cost.
Hints for writing Management
Give resumes of the key personsShare holding patterns ( Sweat capital etc.)
List of advisors, consultants etc.Compensations for the key people.
Hints for writing Financial
Give estimated statements of cash flow.
Present the Source and Use of the funds
Present a capital and revnue budget
Mention the stages of financing and the estimated quantum.
Hints for writing Critical Risk
List of potential risks :Price cutting by competitionChange in the trendPossible Cost and Time over runsVulnerability of the sales projections.Product development risks – cost, product
failure etc.supply chain risksWhat are the de-risking plans
Hints for writing Harvest Strategy
Outline the plan for exit – IPO, Sale etc.
Succession planBusiness continuity plans.
Hints for writing Milestone Schedule
Develop Chart, Schedule ( like CPM, PERT, Gantt etc.) to list the phases of the venture and showing the datelines.
Guidelines to prepare the Business Plan
Keep it short – not more than 15 to 20 pagesKeep it neat and tidy, with table of contents,
exhibits, appendices ,graphs etc.Create excitement by focusing on the emerging
trends and future potentials.Avoid exaggeration
Questions that Business Plan should answer
Who is your customer?Why will they buy your product?Why will they buy from you and not from
competition?Do you have cost advantage?Does your management have relevant
business experience.How much money needed?How will you pay back to the investors and
when?
Suggestions for Business Plan Presentation
Highlight the pain your venture is addressing.Why you and Why now?Highlight the reachable marketExplain the Business Model ie how this venture
is expected to make money.List out the plans and the process of reaching
the target marketMention the metrics to assess the potential and
measure the progress of the venture.Show enthusiasm when you present.