Meaning; Importance; Preparation of business plan; Common pitfalls; Typical BP format; Financial aspects, marketing aspects, human resource aspects, technical aspects and social aspects of the BP.

1. Unit 4– Business Plan 1
UNIT 4
MR.T.SOMASUNDARAM
ASSISTANT PROFESSOR
DEPARTMENT OF MANAGEMENT STUIDES
KRISTU JAYANTI COLLEGE (AUTONOMOUS)
BENGALURU

2. UNIT 4: BUSINESS PLAN
Meaning, Importance,
Preparation of Business Plan,
Common Pitfalls, Typical BP
Format, Financial Aspects,
Marketing Aspects, Human
Resources Aspects, Technical
Aspects and Social Aspects of the
Business Plan (BP). 2Unit 4– Business Plan

3. BUSINESS PLAN
Meaning:
Business Plan is a comprehensive set of guidelines for a
new venture.
It is a planned course of action devised to achieve
specific business objectives within the specific period
of time.
It is a formal written expression of the entrepreneurial
vision, describing the strategy as operations of the
proposed ventures.
It is a written document that summarizes a business
opportunity and defines how the opportunity is to be
exploited. 3Unit 4– Business Plan

4. Definition:
“Business Plan is written document prepared by
the entrepreneur that describes all relevant internal /
external elements & strategies for starting new
venture.”
- it is integrated of Functional Plan
(Marketing, HR, Finance, Manufacturing).
- it is also called Game Plan or Road Map to
reach the destination determined by the
Entrepreneur.
(i.e.) Where am I now?
Where am I going?
(E.g.) Traveller.
4Unit 4– Business Plan

5. Who should write the Business Plan?
- Small Business Administrator (SBA).
- Service Core of Retired Executive (SCORE).
- Small Business Development Centre (SBDC).
Scope and Value of Business Idea:
* Creativity / Techniques in new firm.
* Marketing perspective.
* Financial projection.
Valuable to Entrepreneur:
- to determine venture.
- guidance to entrepreneur in planning activity.
- tool to get finance.
Presenting the Business Plan.
5Unit 4– Business Plan

6. Features of a Good Business Plan:
Some of the features of a good business plan are -
It should be an honest plan with well – supported
information.
A well written plan should be brief, clearly identifying
products, services, markets and founders.
It should be prepared in a quality manner.
It should be easy to read.
It should be complete and accurate.
There should be no spelling mistakes or mistakes in data.
Language should be clear, brief, concise and not abstract.
It should make clear and realistic financial projections.
The words like ‘I think’or ‘I believe’ should be avoided.
6Unit 4– Business Plan

7. It should be prepared after detailed market research
and detailed competitor’s research.
It should describe key decision makers.
It should end up with a thorough summary.
It includes the following items –
i) Goals for the enterprise, both short term & long
term.
ii) A description of products or services on offer.
iii) Market opportunities anticipated for them.
iv) Explanation of resources and means to be
employed to achieve goals.
7Unit 4– Business Plan

8. Importance of a Business Plan:
Business plan describes the venture that an entrepreneur
will create to exploit a concept.
It has few primary function:
a) Action Plan:
• It helps to move an entrepreneur to action.
• It will help an entrepreneur to pull apart the pieces of
starting a business and examine each piece by itself.
• It help entrepreneur to move from concept to action by
breaking down a task into many smaller for starting a
business.
b) Adopt a continuous and regular business planning
cycle because that keeps your plan up-to-date.
8Unit 4– Business Plan

9. c) Road Map:
• Business plan can be invaluable tool for entrepreneur to
be on track after starting the business.
• It is very easy to lose sight of objectives and goals, even
in busy schedule of daily business.
• Business plan help to keep focus and also help others like
suppliers, customers, employees, etc. to understand the
vision of entrepreneur.
d) Reviewal of business plan will indicate where business
currently is and where does the entrepreneur want to go.
e) It keep the entrepreneur focused, inspires employees and
attracts customers.
f) It helps to focus ideas and serves as a feasibility study of
business chances for success and growth. 9Unit 4– Business Plan

10. g) Sales Tool:
• BP serves as a sales tool.
• Entrepreneur need outside financing to start his business
and he needs to convince investors to come on board.
• Business plan help entrepreneur to get concessions from
suppliers.
• BP serve to sell people close to entrepreneur on benefits
of proceeding with his concept.
h) It is a strong communication tool for the business.
i) It helps to manage the business and prepare for success
in business.
j) The finished report serves as an operational tool to
definite possibilities.
1 0Unit 4– Business Plan

11. PREPARATION OF BUSINESS
PLAN
Business Plan consists of a narrative and several financial
worksheets.
Narrative part is the body of the business plan.
Vale of creating a business plan is not in having finished
product in hand, rather the value lies in process of
researching and thinking about business.
It helps you to think things thoroughly and look at your
ideas critically.
It takes several weeks to complete a good plan and most of
the time spent in research and rethinking your ideas and
assumptions.
1 1Unit 4– Business Plan

12. Importance of comprehensive, thoughtful business plan
can’t be overemphasized and much hinges on outside
funding, credit from suppliers, operation & finance,
promotion and marketing of business and achievement of
goals & objectives.
Many entrepreneurs feel difficult in preparing a business
plan as market place changes too fast for a business plan to
be useful or just don’t have enough time.
The following points to keep in mind while you draw your
business plan –
i) Your business plan should be carefully thought-out
document. (Outline of your business)
ii) Your business plan can help you deal with problems before
they get out of hand. (decision making & better contribution
from others) 1 2

13. iii) Your business plan lets you set out your vision and outline a
strategy to make it happen. (road map & guide you in day-to-
day running of your business)
iv) With your main goals and other goals defined, it’s much
easier to set targets, timetables and budgets. (Business decisions
and strategies)
v) The business plan should be an interesting and thought –
provoking document, reflecting your enthusiasm, but it should
set out realistic goals. (Short & simple)
Before writing BP, you should consider following four
questions –
What service or product does your business provide?
Who are potential customers?
How will you reach your potential customers?
Where you will get financial resources to start your business?1 3

14. TYPICAL BUSINESS PLAN
FORMAT
A general format of a business plan is given below:
1. The Executive Summary:
• Information overview of a person, business is all about and
a brief.
• It should not be longer than two pages. One page is
preferable.
2. Description of the Business:
• Name of business, Location and Facility Description.
• Three or Four top level goals.
• At least one strategy to go with each goal.
1 4Unit 4– Business Plan

15. 3. Products and Services:
• Briefly describe what you will offer and why it is
unique.
• Introduction to your market. (Target market)
• Customer demand situation, Competitive situation.
• Sales & Marketing.
4. Management:
• Type of organization, its culture, how it will be
operated.
• Who are the people in charge?
5. Financial Requirements:
• For what purpose is external financing required (if any).
• Financial history of the business.
1 5Unit 4– Business Plan

16. 6. Organization Description:
• Division of responsibility, authority of each person and
measurements of effectiveness.
• Organization chart (if applicable).
• General description of business, historical development.
• Legal structure.
7. Product, Service or Product Line:
• Relative importance of various products.
• Comparison of competitive products.
• Current demand situation and factors that affect
demand.
• Product life cycle analysis.
• Plans for new products or services in the future.
1 6Unit 4– Business Plan

17. 8. Description of the Industry:
• Industry outlook overall, not just locally.
• Industry size – Nation wide, State wide, Locally.
• Major factors that affect this industry.
• Market Share analysis.
• Social, Economic Technological or Regulatory trends.
• Principal market – where and to whom products to be
sold.
• Description of market and its major segments.
• Principal market participants and their past
performances.
• Customer requirements and how you meet those
requirements.
1 7Unit 4– Business Plan

18. • Buying habits of customers and how you meet them.
• Description of your prospective customer – target
market.
• Description of competition.
• What do you do better?
• How do you win customers?
• What are the major competitive problems?
• Why is competition good? What advantage?
• Chart showing competitor strength and weakness.
9. Description of Major Customers:
• Percentage of total business.
• Duration and terms of major contracts.
1 8Unit 4– Business Plan

19. 10. Description of your overall marketing strategy:
• Pricing policy.
• Method of selling, distributing and servicing your products.
• Advertising, promotion, Public relations.
• Geographic penetration – field support.
• Technology.
• Identify and describe any technological advantages of your
products.
• Patent, trademarks, copyrights, trade secrets or other
intellectual assets.
11. Ownership:
• Names, addresses & other business affiliations of all
owners, active or not.
1 9Unit 4– Business Plan

20. 12. Production / Operation Plan:
• Explain how you will produce, process and deliver your
product or service.
• Physical facilities – own or lease, size expansion is
possible, improvements needed.
• Key suppliers, Labour / Employee situation.
• Proprietary Manufacturing Processes.
• Cost breakdown and margin analysis.
• What advantages do you over competition.
• External analysis – legal situation, pending legislation.
13. Management:
• Personal resume of principals.
• Personal background, skills and accomplishments.
2 0Unit 4– Business Plan

21. 14. Key Personnel:
• Responsibilities.
• Brief Job descriptions, resumes.
• Planned staff additions.
15. Other Personnel:
• No. of employees, compensation plans.
• Planned additions.
16. Accounting and Record keeping:
• Accounting methods.
• Record keeping systems and who is responsible.
2 1Unit 4– Business Plan

22. 17. Financial back up information:
• Historical – balance sheet, Income statement of cash flow,
including balance sheet, income statement, cash flow
history & proforma.
• Future projections – sales plan – cost of goods, margin
break even analysis.
• Capital investment plan.
• Source and use of funds.
• Proforma cash flow statement.
• Any other documentation that might be pertinent.
18. Appendices:
• Identify bank and name of loan officer, legal counsel,
outside management or directors.
2 2Unit 4– Business Plan

23. • Background financial information (previous year tax forms
and supporting documents)
• Attach resumes of principals (if applicable).
• Catalogs, sales brochures or other collateral information.
• Relevant public relations material, newspaper articles
about your business.
• Aged accounts receivable if any.
• Current customers list, if any.
• Letter is commitment from present or potential customers.
• Market research data.
• Photographs of your facilities or plans for modification.
• Reference letters, customer feedback letters.
2 3Unit 4– Business Plan

24. BUDGETING PROJECT PROFILE
PREPARATION
Model scheme to manufacture “PAPER PINS”
1) Introduction:
- mild steel with one head on one side and pointed
on other side.
- used in office, shops, schools etc.
2) Scope:
- Stationery items dealers.
- manufacture of pins increasing every year.
3) Production Target:
- 3000 cartons per month.
- each pin approximately 350gms.
Unit 4– Business Plan 2 4

25. 4) Details of Manufacture:
- bright mild steel wire, automatic manufacturing
machine.
- Pins are pickled and cleaned.
- Pins are tin plated and resist rusting.
5) Inspection:
- to check well formed round shape.
- do not bend in use
- clean and bright.
6) Land and Building:
- Covered area 75 sq.meters Rs.400.00
Unit 4– Business Plan 2 5

26. 7) Machinery and Equipment's:
a) Automatic paper pin machines
200 to 250 pieces/minute 4 Nos Rs.40,000.00
b) Plating barrel with 12V.
Dynamo set and other accessories
including initial plating salts 1 No. Rs.12,500.00
c) Drier drum with motor 1 No Rs. 4,500.00
d) D.E. Grinder 200mm wheel size 1 No Rs. 1,000.00
e) Office Furniture etc. Rs. 2,000.00
f) Installation and electrification Rs. 5,000.00
8) Raw material (Monthly requirement):
Hard drawn bright wire 21 to 23 swg. Rs. 4,000.00
Unit 4– Business Plan 2 6

27. 9) Staff and Labour (Per month):
a) Skilled Worker 1 No Rs. 500.00
b) Unskilled Worker 2 No Rs. 400.00
c) Welfare facilities for labour Rs. 300.00
Total Rs. 1,200.00
10) Expenses (Per month):
a) Rent Rs.400.00
b) Electricity and Water Rs. 125.00
c) Packing cost Rs. 1,000.00
d) Sales Expenses Rs. 325.00
e) Stationary, postage etc Rs. 200.00
f) Plating chemicals Rs. 650.00
Total Rs. 2,700.00
Unit 4– Business Plan 2 7

28. 11) Working Capital (Per month):
a) Raw materials Rs. 4,000.00
b) Staff labour Rs. 1,200.00
c) Other expenses Rs. 2,700.00
Total Rs. 7,900.00
12) Total capital invested:
a) Machinery and equipment Rs. 65,000.00
b) Working capital for 3 months Rs. 23,700.00
Total Rs. 88,700.00
13) Manufacturing cost (Per month):
a) Raw material Rs. 4,000.00
b) Staff and labour Rs. 1,200.00
c) Other expenses Rs. 2,700.00
d) Depreciation on M & E at 10% Rs. 540.00
e) Investment on C.I. at 15% Rs. 1,110.00
Unit 4– Business Plan 2 8

29. 14) Total Sales (Per month):
By sale of 3,000 card board cartons of
400 gms gross weight at Rs.3.75 each = Rs.11,250.00
15) Total Profit (Per month):
a) Monthly Profit = Total Sales – Manufacturing cost
= 11,250 – 9,550 = Rs. 1,770
Annual Profit = 1,700 x 12 = Rs. 20,400
b) % of Profit on Sales
= Profit per month x 100 = 1,700 x 100 = 15.1%
Sales per month 11,250
c) % of profit on Capital Investment
= Annual Profit x 100 = 20,400 x 100 = 23%
Capital investment 88,701
Unit 4– Business Plan 2 9

30. COMMON PITFALLS TO BE AVOIDED IN
PREPARATION OF BUSINESS PLAN
Some of the common errors which happens while
preparing a business plan –
Capacity Utilization.
Understanding of Market.
Overestimation of demand.
Selection of appropriate machineries.
Lack of understanding of appropriate technology.
Project planning and implementation strategies.
Underestimation of project cost.
Wrongful selection of business location.
3 0Unit 4– Business Plan

31. Unrealistic pricing strategies.
Unrealistic cash flow estimates.
Lack of understanding of trading channels.
Capability of firm to market its products in
competitive market.
Fail to asses market potential.
Inaccurate information of demand and supply
conditions.
Fail to understand the seasonality of the business.
Unrealistic market estimates and production
estimates.
3 1Unit 4– Business Plan

32. FINANCIAL ASPECTS OF BUSINESS
PLAN
A entrepreneur must clearly indicate his financial plans.
How much of investment comes from him, how much of
money he plans to raise and from which sources, what is
ROI, etc.
Assumptions:
• Revenue forecasts (prices, volume discounts, margins).
• Cost of Goods sold (materials, labor, major indirect
expenses).
• Sales and Marketing expenses (no. of people, key salaries,
commissions, advertising & promotion).
• Development expenses (subcontract, major expenses)
3 2Unit 4– Business Plan

33. • Administrative expenses (profit sharing, rent, major
expenses).
• Extraordinary income and expenses.
• Tax rate.
• Capital expenditures: prepare a detailed list of fixed
asset items (equipment, vehicles, buildings, fixtures,
etc.)
• Working capital (accounts receivable, inventory,
accounts payable).
• Funding (amount and timing of equity and debt,
interest rate).
• Other key assumptions.
3 3Unit 4– Business Plan

34. Financial Summary:
The format for financial summary are:
3 4
Summary Financial Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross Profit
EBIT
Net earnings
Capital expenditures
Dividends
Cash
Total Equity
Growth
Revenue growth rate
Net earnings growth rate
Ratios
Current Ratio
Profitability
Gross Profit %
Operating expenses%
Returns
Return on Asset / Equity

35. Key Assumptions:
Some assumptions made that will determine financial
success of business are –
• What are the customer acquisition costs?
• What minimum no. of customers per day and average
selling price is assumed?
• What level of costs per unit must be achieved?
• What level of discount is assumed for the distribution
channel?
• What are the lease costs for the site?
• What is the development cost and timing of a new
product?
3 5Unit 4– Business Plan

36. Risks:
Identify the major risks venture faces by consider the
following –
a) Market:
• Size of market & Competitor’s response.
• Long sales cycle.
• Price that customers are willing to pay.
• Closing window.
b) Strategic:
• Establishing strategic partnerships.
c) Operational:
• Large no. of interrelated components.
• Costs & Quality level.
3 6Unit 4– Business Plan

37. d) Technology:
• Will it works?
• Patentability.
• Time and cost to development.
• Scalability.
e) Financial:
• Risk / Return.
• Dilution.
f) Macroeconomic:
• Volatile industry.
• Government approval.
• New regulations and laws.
• Exchange rates and Interest rates.
3 7Unit 4– Business Plan

38. Funding Requirements:
The required amount and timing of investments needed to
execute your plan -
• Review the cash flow projections to determine amount of
cash generated or required for each year.
• Review monthly and quarterly cash flows to determine
impact of seasonality or one time expenditures.
• Determine the amount and timing of cash infusions
needed to prevent cash balances.
• Add a cash safety to anticipated cash needs to protect
against unexpected expenses.
• Develop a funding strategy that is consistent with your cash
needs.
3 8Unit 4– Business Plan

39. Sources and Uses of Funds statement:
Prepare a sources and uses statement -
a) Sources: - determine type of funding most suitable for
business.
• Equity funding is appropriate for most start up businesses.
• Debt may be appropriate for existing businesses with financial
track record and assets.
• Non – traditional financing may be appropriate when
customers or vendors are willing to participate in business.
b) Uses of funds: - based on estimate of funds required.
• Product design and development.
• Marketing actions (E.g.) major advertising campaign, catalog.
• Capital expenditures (E.g.) new machine.
• Working capital.
3 9Unit 4– Business Plan

40. Funding Strategies:
Determining most appropriate sources for type of funding -
a) Sources of equity funding:
• Friends and family suitable for smaller business.
• Angel investors – suitable for moderately sized business.
b) Sources of debt financing:
• Banks – suitable for business with established credit records.
• Small Business administration – government guaranteed
loans.
• Friends and family.
c) Sources of non – traditional financing:
• Leases rather than purchasing equipment.
• Vendor & Customer participation.
• Other creative arrangement – non traditional financing. 4 0Unit 4– Business Plan

41. MARKETING ASPECTS OF
BUSINESS PLAN
Marketing plan will make or break the prospects for your
venture.
Marketing Plan is where you show how you are going to fit
into the market structure you just finished describing.
Target Market Strategy:
• Provide a profile of consumer that are you targeting to
launch product or service:
• Describe the characteristics that define your target
customers.
• Describe the unmet needs of your target customers that
your product / service fulfills.
• Describe how your customers make buying decisions. 4 1

42. • What evidence do you have that your customers
understand the benefits and that they can enough to buy
your product / service?
• What evidence do you have that the benefits of your
product / service are sufficient to overcome brand loyalty?
• What customer segments will you move into in future?
Channel Strategy:
There are many different channels that you can use,
depending on industry –
a) Potential channels:
• Distributors, Wholesalers and Retailers.
• Original equipment manufacturers, System Integrators and
Value added retailers.
• E-commerce.
4 2Unit 4– Business Plan

43. • Should you consider a multi – channel strategy?
• Identify specific companies that will be your channel
partners.
• Describe the discussions that you have had and any
commitments that have been negotiated.
Positioning:
Prepare the statement that positions your product / service in
minds of target customers by consider the following –
• What does the target customer need to believe about your
offering?
• What attributes and benefits of your product / service are
most persuasive in getting the target customer to act?
• What is the name of company and why has this been
selected?
• What are the company characteristics? 4 3

44. Product / Service Strategy:
• Describe how your product has been designed and tailored to
meet needs of target customer by –
• What products / service will you offer initially?
• What specific product / service design and performance
characteristics meet the customers needs?
• How will your product / service be different from competitor?
• How can you enhance the product or service with unique
process, resources, employee skills, systems, location, etc.?
• How will you provide customer service?
• What future products will you launch?
• What differentiate your products / service in target customer’s
minds?
• What are the strengths & weakness of your product / services?
4 4Unit 4– Business Plan

45. Pricing Strategy:
Explain your pricing strategy and why it will be effective with
your target customer –
• What is your pricing strategy? Why? Consider following
strategies –
a) Commodity pricing.
b) Set by the market.
c) Supply and Demand.
d) Based on competitor (s) price.
e) Value pricing – how much customer is willing to pay for
value received.
f) Payback period – depends on impact on company profit.
g) Industry rule of thumb – keystone pricing is common in retail
businesses and equals purchase cost + 100% markup.
4 5Unit 4– Business Plan

46. h) Introductory low price to get customers to use.
i) Cost plus + markup.
j) E-commerce – transaction fee, advertising, intermediary
commission, subscription fees, etc.
• List the prices for each of the products / services that you
offer.
• What is channel pricing (i.e.) what discount does each
element of channel receive at each stage.
• How does your pricing strategy compare with your major
competitors?
• What evidence do you have that your target market will
accept your price?
4 6Unit 4– Business Plan

47. Communication Strategy:
It is necessary to inform your target market about the
availability of your product / service and continue to
communicate the benefits by considering the following –
• Media advertising (TV, Radio, Newspaper)
• Direct response advertising (mail, e-mail)
• Outdoor advertising (billboards, posters, cinema)
• Brochures, catalogs, specifications and manuals.
• Point – of purchase.
• Trade and consumer promotions.
• Sponsorships and events.
• Public relations.
• What messages need to be communicated to establish your
brand?
4 7
• Exhibitions and conferences.
• E-commerce.
Unit 4– Business Plan

48. Sales Strategy:
It describe how your product / service will be sold –
• Personal selling? TV infomercials? Direct mail?
• Who will do the selling? Company Sales force?
Manufacturer’s representative?
• How will you generate leads?
• How will you recruit, train and compensate the sales force?
• How will you support the sales effort?
Revenue Model:
Prepare a table that forecasts the revenue of your venture over
next 5 years. For each market the factors are different and
consider the following –
• Market potential – size of market in units, no. of customers or
transactions & growth rate.
4 8Unit 4– Business Plan

49. • Market share – penetration rate and roll out
strategy.
• Product and service offered – range and mix, new
products or services, obsolescene.
• Frequency of purchase – no. of purchases per
week, month.
• Capacity utilization – hours operated & turns.
• Channel strategy – distribution channels, discount.
• Prices for each product line based on your pricing
strategy.
4 9Unit 4– Business Plan

50. HR ASPECTS OF BUSINESS PLAN
A Competent team of the people at every level of the
company can mean the difference between success and
failure.
It indicates the strengths and weakness of various teams
contributing to the business idea.
It is important to describe the team and list their talents and
experience they bring to business.
Describe the organizational structure and provide
organizational chart indicating no. of officers and
employees.
Describe the roles and responsibilities of senior executive
officers and also management committees.
5 0Unit 4– Business Plan

51. Top Management:
• List down the structure of top management, which makes
policies, sets goals, pool the resources, etc.
• It is important to highlight management team, their
experiences, strengths, etc.
Middle Management:
• It understands the vision / goals / purposes of organization and
translate into action plans.
Operations Management:
• It indicates the work at the operational level (i.e.) shop floor in
case of manufacturing, field in case of sales and service
personal.
• These people interact with the customers and vendors directly.
• Competencies and skills of these people matter a lot to an
organization. 5 1

52. Supporting Staff:
• It is advisable to define and describe the role of
supporting staff in the business plan.
Advisors:
• Organization requires advisory services in various
areas of business.
• Entrepreneur require expert opinions time to time
related to legal issues, quality issues, finance and
auditing issues, etc.
• It enhances the weightage of the business plan.
5 2Unit 4– Business Plan

53. The following information about the human resources
in the business plan will add clarity -
• No. of employees.
• Type of labour (skilled, unskilled and professional).
• Where and how will you find the right employee?
• Quality of existing staff.
• Pay structure.
• Training methods and requirements.
• Who does which tasks?
• Job descriptions of each employee.
• For certain functions, will you use contract workers
in addition to employees?
5 3Unit 4– Business Plan

54. TECHNICAL ASPECTS OF BUSINESS
PLAN
Every business needs technology to handle most routine
business operations, from maintaining financial records, to
processing orders, to staying in contact with suppliers and
customers.
Technology is so central to running a business today and
need to plan what technology will use and how will use it.
Why Technology Plan?
Decisions about technology related to choice of database
program may be costly or cumbersome to change later.
Technology plan should make your company to grow or
change and try to choose technology that is flexible enough
to grow and change in business. 5 4Unit 4– Business Plan

55. What do you use technology for?
Common business needs that utilize technology –
 Accounting, taxes, finance.
 Order fulfillment and shipping.
 Database management: customer, product, supplier,
inventory, etc.
 Communication with customers.
 Internal communication.
 Presentations.
 Personnel / HRM.
 Production: design, cost-tracking, supply management, etc.
 Internet marketing / website / e-mail.
 Internet sales.
5 5Unit 4– Business Plan
 Order taking and tracking.
 Inventory management.
 Mailing lists.
 Desktop publishing /
graphics.

56. Choosing Technology:
Key issues when choosing technology include –
 Functions.
 Cost.
 Ability to be upgraded and / or expected.
 Integration with existing data, technology, systems, etc..
 Maintainability, spare parts and inventory requirements.
 Financial considerations in acquiring the technology.
As a guideline, ask yourself the following questions:
What features do you absolutely need?
What features would be helpful, although they are not
absolutely essential?
How often will you need to change or update computer
software? 5 6
 Ease of use.
 Security.

57. Does your equipment have to be compatible with other
equipment or lots of software?
With equipment that uses consumables such as ink
cartridges for printers, are replacement supplies readily
available?
Do you do tasks like design, desktop publishing,
presentation? If so you must go for latest equipment.
If you are operating internationally, what do you need to
integrate different systems, etc.
 Some industries produce specialized software or hardware
to meet industry specific demands.
 It is necessary to check compatible with the industry
specific items with common software or hardware.
5 7Unit 4– Business Plan

58. SOCIAL ASPECTS OF BUSINESS
PLAN
A business firm must function and act in such a way that
it should accomplish not only economic gain but social
gain as well.
The traditional business decisions are confined primarily
to narrow economic and technical gains, ideally –
- a business firm should not ignore the welfare of the
society.
- policies and decisions of business enterprise, should focus
on values of society and
- earning profit by honouring values of society and finally
assist the promotion of welfare of society.
5 8Unit 4– Business Plan

59. In your business plan clearly explain -
 How do you plan to optimize the resources?
 How your products / service which is being produced
efficiently contributes to economic well being of society?
 What are your plans to with respect to environment,
ecology and anti – pollution measures?
 Express your interests in participating in social welfare
programmes like adopting villages / schools, etc. for their
development.
 Mention in the business plan about ensuring the gains of
improved production of enterprise are shared by all
constituents of society.
 Mention about how your business plans serve the national
policy to establish an egalitarian social order in country.
5 9Unit 4– Business Plan

60. 6 0Unit 4– Business Plan

61. 61Unit 4– Business Plan