2. Importance of Plan for Success of a Venture
Translating a good idea into an effective business requires
meticulous planning.
Business plan visualizes what all challenges may emanate on
the way, and how the same would be responded to.
Taking action without detailed planning results in teething
problems that ultimately lead to failure.
Detailed planning helps in improving the chances of success.
3. Start-ups Face Greater Challenges in
Planning
In regard to making a range of untested assumptions on
following counts:
The take up rate of your product or service.
The price you can charge.
Distribution channels and time to market.
Cost of production.
Staffing.
Access to capital.
4. Characteristics of High Growth Potential Ventures
Effective Management Team
Customer needs
Innovative
solutions for
which customers
will willingly pay
premium
Well-identified
target market for
sustained money
making
Over a period of time
5. Areas for Innovative Businesses
Energy: technology, solar ,wind, fuels for automobiles and in
other applications.
Water :scarcity of water, irrigation and other uses of water
Environment :increasing impact of pollutants, need for coming
out with environment-friendly and green technologies.
Biotechnology: cultivation of plants, technology, blood
screening tests, artificial organs, animal drugs etc.
Internet: web designing, internet marketing, small business
equipment, video games, multimedia techniques, books and
magazines.
Health: health clubs, exercise machines, healthy food, mobile
medical and door to door services, traditional health practices
like yoga, Ayurveda
6. 6
• Childcare and old age care: child care centers, rent-a-
grandparent services, old age care etc
• Specialty and extravagant goods: laptops, designer baby
clothes, beauty parlor services, meat such as of buffalo,
ostrich, elk (large northern deer), venison etc
• Children’s products and services: health care for new
borns, furniture for schools and homes, software for learning
maths and science, tutions, games and many
• Home and office products: home décor and furnishing,
safety and security devices, home and office furniture,
technical equipment etc
• Stylish, elegant and smart appliances: digital cellular
phones, radios, interactive TV, multi sensory robotics, voice
recognition products.
• Professional development: customized on site computer
training, computer literacy, video conferencing organizers etc
• Pet pampering: pet hotels, pet grooming and travelling vans,
emergency clinics, car furniture, clothing stores
7. What is a Business Plan?
Business plan is a formal written
expression of the entrepreneurial vision,
describing the strategy and operations of
the proposed venture.
Business plan is a written document
describing all relevant internal and
external elements, and strategies for
starting a new venture.
Contd…
8. What is a Business Plan?
Business plan is any plan that works for a
business to look ahead, allocate
resources, focus on key points, and
prepare for problems and opportunities.
Business plan is a document that brings
together the key elements of a business
that include details about products and
services, cost, sales and expected profits.
9. What is a Business Plan?
Justification
Clear
P R O C E S SIt is a . . .
that provides . . .
that are . . .
resulting in a . . .
Increases the probability of success
Operating
plan
Evidence Reasons
Verifiable Convincing
Blueprint
Feasibility
study
that. . .
10. Why Write a Business
Plan?
Communication
Tool
Analytical
Tool
Operating
Tool
11. When and for Whom is
a Business Plan
Necessary?
A Business in
Search of Capital
A Company in
Trouble
A Entrepreneur
Looking for
partners
A Company Facing
Rapid Change
An Individual
With an idea
12. Things to Remember While
Preparing Business Plan
• Business should get aligned with your skills and strengths.
• Start a business which you passionately like and love.
• A dedicated and determined founding team.
• Idea should have a business model in place?
• Can we really make money with this business concept?
• Be focused about the target customers, and how would you reach them?
• Will the finished product reflect well on the investor and the entrepreneur to create
an image?
• Will the idea really be adding value for all the stakeholders?
14. Strengths (S)
Strong and Loyal Customer
Base
Second Largest Market Share
Low cost of Production
Skilled Manpower
Higher Operational Efficiency
Capable to Compete
Internationally
Weakness (W)
No Global presence
Product need Enhancement
Low investment in R&D
Poor Infrastructure
Inadequate Systems and
Procedures
Opportunities (O)
International Market
Opportunities increasing
Acquisition Opportunities
Threats (T)
Global Competition Increasing
Raw Material Cost Rising
Appreciation of rupee
Excise Rate going to Increase
Fig. SWOT Analysis for Identifying Values
Drivers and Developing Strategies
Favorable Unfavorable
15. Clear Vision Purpose
- Direction and Purpose
-Mission
Satisfy Real Customer Needs and Serve Real Customers
Clear vision purpose
Satisfy real customer
need & Serve customer
Differentiate from
competitor
Resource Focus, Organization
and Commitment to satisfy
customer need
Business Plan
Driver
Fig: Business Plan
Driver
16. Differentiate From Competitors
- On extraordinary edged over Cost , Quality, Performance, Product
availability, Technology, Leadership, Timely Delivery, Service, Durability
and Post selling customer support.
- Developing Unique Selling Proposition (USP)
Resource Focus, Organization And
commitment to Satisfy Customer needs
17. Example:
SOWT Analysis Wall-Mart
Strengths
A Market Leader with cost advantage on account of the scale of operation
gives a competitive edge.
Low Cost Leadership in delivering a wide range of merchandise to customers.
Strategy to expand Internationally
Weakness
Labour Intensive and hence cause labour-ralated dispute and Litigation.
Time lost In litigation that also cause labour relation
Huge Premises required at strategic location that may be very costly.
A company may have to vacate premises, If taken on the lease
termination, which may affect business incase it requires to shift to another
18. Opportunities
Emerging business potential for retail sector in emerging markets.
Internet marketing can give a big boost to the business.
Focus on the grocery and food will be beneficial; because of trend in favor
of eating at home , health emerges.
Increasing working couples having less and less time for shopping prefer
Wal-Mart type of outlets.
Threats
Increasing warehousing facility at strategic location.
Volatility I commodity prices and inflation will squeeze profit margins.
Affiliation of the labour force with recognized unions brings in
interference from trade unions.
Local retailers apply utmost resistance for the opening of Wal-Mart type
outlets.
19. Business Failures
- 32% because of inadequate research and development
- 23% were bad ideas
- 14% Due to Uncontrolled Cost
- 13% Because of weak marketing strategies
- 10% erred with bad Timing
- 8% Succumbed to competitor activity
20. PERSPECTIVES TO BE
CONSIDERED IN BUSINESS PLAN
PREPARATION
There are as many different perspectives on business planning
because it has to cater to the needs & requirements of different
stakeholders.
Business plan is a valuable instrument for entrepreneur and potential
investors
1) Determining the viability of the venture
2) Providing guidance and the basis to he entrepreneur for
channelizing resources and organizing activities
3)Serving as an important instrument to obtain financial resources
21. PERSPECTIVES OF
ENTREPRENEUR
An ENTREPRENEUR translate their ideas into reality that
would give rise to sustainable growth ,greater heights
Competitive advantage to become leaders in their business
An entrepreneur should keep his heart and soul into the
business
Focus on the process and operational issues
They have to take care there plan to ensure sucess
22. They have to identify there strength and weakness
areas under basic categories such as
Accounting , planning , forecasting , marketing
research, sales , human resources management
product design and development , legal aspects all
these help them to build a good team
23. Marketing perceptive
Focuses on the customer and knowing the requirements
Unique selling proposition
Knowing the features and traits of ones product or services
Physical attributes of one’s product or services
Benefits –tangible and intangible
24. Customer satisfaction and how we are providing it and
what are the key concerns of the customer like way of
treatment of sales person
We have to build long lasting relation ship with the
customer
25. INVESTORS PERSPECTIVE
Investors mostly look on the profits and some take high risk
that make business success
Investors invest money on the early stage companies as
more lucrative
They give success to the start up ventures
They should have a good network that plays a key role for
recruiting employees at right time
Focus in the business plan about other stack holders such
as
Government :- business activity results in social
improvement and jobs and tax revenue for the development
of infrastructure
27. WHO SHOULD PREPARE
BUSINESS PLAN
An entrepreneur should prepare the business plan as they
are the ones who have conceived an idea into opportunity
One should have a depth of the data analysis to make a
proper plan with some figures
28. BASICS & STRUCTURE OF
BUSINESS PLAN
A written document describing all
relevant internal and external
elements and strategies for starting a
new venture.
Should address both short-term &
long-term decision making for the
first few years.
ALL THEIR ISSUES AND CONCERNS MUST
BE ADDRESSED
WHO READS THE
PLAN ?
Venture Capitalists
Employees
Investors
Bankers
Suppliers
Customers
Advisors
Consultants
29. WRITING THE BUSINESS PLAN
A BUSINESS PLAN MUST CONTAIN THE FOLLOWING
Introductory Page
Executive Summery
Vision/Mission Statement
Business Environment & Competitor Analysis
Market Research and Analysis
Marketing Plan
Financial Plan & Funding Needs
Technology Manufacturing & Operational Plan
Intellectual Property
Legal Considerations & Insurance Requirements
Management Team
Risks Problems & Assumptions
Launching a Business & Measuring Plan Progress
Growth & Exit Strategy
Appendices
31. INTRODUCTION
The Company's name, address, telephone, fax, e-mail
and website address, if any.
The name and designation of the contact person
Names of organizations from where funding is being
sought.
The Company's logo -which could be an image, design or
picture representing the company's ideology
pictographically.
32. EXECUTIVE SUMMERY
It’s the 1st Eye catcher for your B-Plan
First to be presented & last to be written
Grab the attention of the reader
Accurate definition of nature of business
venture
Precise , catchy and
powerful
Define nature of
business
Target market
&competition
Competitive
advantage
Growth prospects
Funding requirements
Strength of
management team
33. Vision/Mission Statement
Business Environment & Competitor Analysis
Market Research and Analysis
Marketing Plan
Financial Plan & Funding Needs
34. Technology Manufacturing & Operational Plan
Intellectual Property
Legal Considerations & Insurance Requirements
Management Team
Risks Problems & Assumptions
Launching a Business & Measuring Plan Progress
Growth & Exit Strategy
Appendices
35. Operational Plan
/(Production Plan)
Manufacturing Process
»Contractors or Subcontractors
»Reasons for selecting them
»Costs of Subcontracted Manufacturing
(Include copies of written contracts or
Quotations)
»Layout of Production Process [step by
step]
»Machinery & Infrastructure required
»Cost analysis & Sources of Machinery &
Infrastructure
»Raw material required
»Details of Raw Material Suppliers
»Alternatives during Emergencies
[on supply or demand sides]
»Future Capital Requirements (for further
scaling etc.)
For a Service or Retail
Operation
Details of Suppliers [Include copies of
Contracts or Quotations]
How will the Inventory Control
System operate
A Blue Print of the Entire Operational
Plan from
SUPPLIER>>COMPANY>>END USER
Technology Deployed in
the Operations
Storage Needs
Chronologically the steps involved in a
Business Transaction
36. •Firstly indicate the potential
risks to the new venture
•Analyze the probable
consequences if these risks
become reality
•Develop a Contingency Plan
that will be employed to
Avoid or Minimize the Risks.
Risk
Analysis
• Economic
/Financial
• Legal
• Operational
• Marketing
• Growth
• Competitor
TYPES OF
RISKS
INVOLVED
37. APPENDIX
Contain back up Material
Supporting Letter
Market Research data
Leases or Contracts
Price Quotations from
Suppliers etc.
Agreement Letters
38. What is Most Important in a Plan?
• Cash flow is the heart of a business plan which is very vital
for the existence, sustenance and growth of the business.
• Implementation details and acumen of the management team.
• Inputs in the business plans that focus on improvement of a
venture on continuous basis.
39. Pitching a Business Plan
• 10 seconds focuses on gut feel
about the opportunity
• 100 seconds is called elevator
pitch
• 10 minutes focuses on gist of the
presentation
• 20- 25 minutes concise
presentation
• 45 minutes full presentation
• 90 minutes whole story with
detailed question answers
Pitching a plan
involves
presentation in a
clear, concise and
convincing manner
to ensure
capabilities of the
management team
to stakeholder.
There are different
time slots for
pitching an idea
that have their own
relevance, such as
pitching in
40. Key Tips to Effectively Present Business Plan
Presenting
Business
Plan
Be clear about
your audience
Tell a story or
incident
Be positive,
optimistic and
keep winning
attitude
Be clear about
details and
basis of
assumptions
Use
powerpoint
slides
judiciously
Make realistic
assumptions
and be clear
about numbers
Practice the
presentation
Be clear about who your
audience are
Tell a story or incident
Be Positive, Optimistic
and Possess a Winning
attitude while preparing
Be clear about details and
assumptions made
Use PowerPoint
Judiciously
Make Realistic
assumptions and be clear
about numbers
Practice the Presentation
41. Elevator Pitch
• Sixty seconds process to catch fire in the mind of
listeners to get attracted about the business proposition.
• Quick and clear description of a business.
• Entrepreneur should be able to express their business
proposition, why it would succeed in the market and
what fund support they are looking for from investors.
• Clear strategy to express thoughts without jumbling them
and using powerful words and pictures.
Start your elevator with a business situation and by giving a
story, incident and example, personalize your presentation by
clearly identifying with the audience.
42. Executive Pitch Deck—Content
• Should not exceed 20 slides.
• Three broad sections namely:
– First three slides with a focus on executive summary—problem, size of
opportunity, solution and its status and team effectiveness.
– Maximum 15 more slides with details of plan.
– Last two slides of appendix: supporting facts, figures, research and
agreements/contracts
– While presenting, team should be ready to jump around, change order as
per on the spot requirements and interest shown by investors.
• Separate emphasis on team.
• Focus on revenue model, business model, strategic milestones
and risks with exit strategy.
• Clearly highlight vision and create excitement and interest
amongst listeners.