BP-Unit II

8/8/2019 BP-Unit II

1/23

Prepared by V.Ravi KumarFaculty-CMS IMS1

THE BUSINESS PLAN PROCESS

Five steps in the process:

1. Laying out the basic business concept.

2. Gathering the data on feasibility.

3. Focusing and refining the concept based

on the data compiled.4. Getting the specifics of the business.

5. Putting the plan into action.

8/8/2019 BP-Unit II

2/23



1. The Business concept:

Is it retail, manufacturing, distribution.

The products to be sold.

Potential customers.

Basic marketing and sales strategy.Competition.

8/8/2019 BP-Unit II

3/23



2. Gathering data on feasibility:

Use of researched information.

Get realistic picture of the business.

Get educated about the business.

Accounts information helps in betterdecisions.

8/8/2019 BP-Unit II

4/23



3. Bringing the business concept in focus:

Ask questions such as,- Can the business be viable.

- Does a real market exist.

- Is there too much competitors already.

- How does the financial picture look.

Based on the above check if original ideaneeds modification.

8/8/2019 BP-Unit II

5/23



4. Getting the specifics of the business:

Funding the business.

location identification.

Manpower planning.

Distribution network identification.

8/8/2019 BP-Unit II

6/23

Prepared by V.Ravi Kumar

Faculty-CMS IMS6


5. Putting the plan into action:

With full facts, for about 3 to 5 years, usingthe business terms, photographs,

illustrations, graphs and charts.

8/8/2019 BP-Unit II

7/23


Faculty-CMS IMS7

Assignment -I

Conceive an idea for a business of your

choice, and detail the steps you would takefor putting the process into action.

Due date; 6th Jan 2010.

8/8/2019 BP-Unit II

8/23


Faculty-CMS IMS8

SOURCES OF INFORMATION

I. Internet:

This is the best, easiest and least expensive placeto start the research. Government has made

available to the public in the internet most of the

data they collect. Trade or industry studies or

publications are made available on line, free or

relatively inexpensively. Research services arealso available to instantly check articles, statistics,

surveys etc.,

8/8/2019 BP-Unit II

9/23


Faculty-CMS IMS

Sources of Information

Some prominent providers of trade information:

Apparel Export Promotion council, Nationalassociation of Software services Co.s,

Confederation of Indian Industry, Associated

Chamber of Commerce and Industry in India,

Federation of Indian Export Organisations, Indian

Institute of materials management,Gem and Jewellery Export promotion council, All

India association of industries.

8/8/2019 BP-Unit II

10/23


Faculty-CMS IMS10


II. Government Sources and Statistics:

www.indiastat.comwww.indiandata.com

www.dipnic.in

www.tamilnacdustat.com

www.indiaonestop.com

www.opl.org/research/industry.htm

www.indianindustry.com

www.infodriveindia.com

8/8/2019 BP-Unit II

11/23


Faculty-CMS IMS11


III. Off- Line Research Sources:

1. Libraries: public, University libraries, freeand also fee based data.

2. Government Services: Dun and Brad street,

Plunketts Industrial almanacs, standard

and Poor net advantage, FP Infomart,

snapshot North America.

8/8/2019 BP-Unit II

12/23


Faculty-CMS IMS12


3. SBDC (Small business development Centre)

These are located in many American communitiesand are excellent source of information andassistance. In addition to maintaining a library ofreference materials, SBDC staff can direct you tosources appropriate to the planning process. Theyhelp in identifying local resources for a particularbusiness and they often conduct workshops onbusiness topics and skills. Many SBDC centers areavailable at some of the colleges and universities.

8/8/2019 BP-Unit II

13/23

8/8/2019 BP-Unit II

14/23


Faculty-CMS IMS14


5. Private firms gather information and provide

more detailed competitor sales estimatesand undertake market research projects.

They are expensive.

6. Historical perspective: If the business is an

ongoing one there is need to gather historicaldata about your own company. Past financial

information is important.

8/8/2019 BP-Unit II

15/23


Faculty-CMS IMS15

Sources of Market Research

1. Potential customers, both end-users and buyers or

retailers if business is wholesaling.2. Potential suppliers.

3. Related business in different cities.

4. Banks, chamber of commerce or merchant groups.

5. Competitors.6. Entrepreneur groups.

8/8/2019 BP-Unit II

16/23


Faculty-CMS IMS16

SOURCES OF DATA COLLECTION

1. Primary data.

2. Secondary data.Primary data is first hand data collected

from the market/respondents, personally

through questionnaire or through telephone

or through mail. Advantages are that the

actual response of the customers are

known.

8/8/2019 BP-Unit II

17/23


Faculty-CMS IMS17

Sources of Data collection

2.Secondary sources:

Information got from company records,journals, magazines, net which have been

already collected. For the purpose of further

analysis, refinement of the data is essential.

8/8/2019 BP-Unit II

18/23


Faculty-CMS IMS18

Coverage of the market study

From a given population that has to be

studied, research identifies samplingmethods as a best suited form of covering

the appropriate market.

For sampling methods refer Research

methodology by Kothari.

8/8/2019 BP-Unit II

19/23


Faculty-CMS IMS19

Benefits of Market study

1. Proper understanding of the customer.

2. Better decision making.3. Competitor activities.

4. Government policies with regard tobusiness.

5. Proper utilisation of funds.6. Proper sourcing of funds.

7. Appropriate man power planning.

8/8/2019 BP-Unit II

20/23


Faculty-CMS IMS20

Evaluating the data collected

1. Use the most recent data.

2. Translate the data into units.3. Take the most reliable source.

4. Integrate data from one source to another

and make conclusions.

5. Use the most conservative figures.

8/8/2019 BP-Unit II

21/23


Faculty-CMS IMS21

Evaluating the data

All the data collected has to be evaluated and

further interpreted. Data mining concepts anduse of statistical tools like chi-square test, t-

test, f-test, regression analysis, conjoint

analysis are used to evaluate and interpret

the data.

8/8/2019 BP-Unit II

22/23

8/8/2019 BP-Unit II

23/23


Faculty-CMS IMS23

Market demand-

Five dimensional concept

3. Freedom: How convenient is it to purchase

and use the product or service.4. Feelings : How does the products or services

make the customers feel about themselves.

5. Future: How will the customer deal with the

product/service and company over time.

Documents

BP-Unit II