BZUPAGES.COM
BZUPAGES.COM
Presentation Chapter#7The Business plan:Creating & Starting the Venture
Presented to:
Sir Ghulam Abbas
BZUPAGES.COM
Group members
Kiran Shakoor Nazish Yaqoob Razeena Ameen Ayesha Yaseen
BZUPAGES.COM
Learning Objectives
To define what the business plan is, who prepares it, who reads it, and how it is evaluated.
To understand the scope and value of the business plan to investors, lenders, employees, suppliers, and customers
To identify information needs and sources for each critical section of the business plan.
To enhance awareness of the ability of the internet as an information resource and marketing tool.
To present examples and a step by step explanation of the business plan.
To present helpful questions for the entrepreneur at each stage of the planning process.
To understand how to monitor the business plan.
BZUPAGES.COM
Planning as Part of The Business Operation Planning is a process than never ends for a
business. It is extremely important in the early stages
of any new venture when the entrepreneur will need to prepare a preliminary business plan.
As the venture grow up to mature business, planning will continue …
Plan may be short term or long term, strategic or operational.
BZUPAGES.COM
What is Business Plan?
The business plan is a written document prepared by the entrepreneur that describes all the relevant internal and external elements and strategies for starting a new venture.
It is a integration of functional plans such as marketing, finance, manufacturing, sales and human resources.
BZUPAGES.COM
Who should write the plan?
The business plan should be prepared by the entrepreneur.
The entrepreneur may consult with many other sources in its preparation, such as lawyers, accountants, marketing consultants, and engineers.
BZUPAGES.COM
Scope and Value of the Business Plan – Who Reads The Plans?
The business plan may be read by employees, investors, bankers, suppliers, customers, advisors, and consultants.
There are three perspectives should be considered in preparing the plan :Perspective of the entrepreneurMarketing perspectiveInvestor’s perspective
BZUPAGES.COM
Scope and Value …
The business plan is valuable to the entrepreneur, potential investors, or even new personnel, who are trying to familiarize themselves with the venture, it goals, and objectives. It helps determine the viability of the venture
in a designated market It provides guidance to the entrepreneur in
organizing his or her planning activities It serves as an important tool in helping to
obtain financing.
BZUPAGES.COM
How do Potential Lenders and Investors Evaluate The Plan?
Four Cs of Credit:CharactersCash flowCollateralEquity of Contribution
BZUPAGES.COM
Nazish Yaqoob
07-11
BZUPAGES.COM
Presenting the plan
Entrepreneur present their business plan in a competitive and structured setting.
Present highlights of business plan in a defined time.
Entrepreneur must decide what to say and how to present information?
Benefits for this competition is in rewards or also in to attract the attention of the
BZUPAGES.COM
Audience at this presentation usually include
Potential investors Professional investors (venture
capitalists, private investors) Some investors describe these
presentation as elevator pitches..
BZUPAGES.COM
Information needs
Information obtainable from many sources, should focus on marketing, finance and production.
Goals and objectives are defined for the business plan.
Internet is the valuable resource of information for entrepreneur.
BZUPAGES.COM
Market information Market potential for the product or
service Size of market
Is the product is purchased by both men and women?
People of high and low income
Rural and urban dwellers?
Highly and less educated people?
BZUPAGES.COM
Operations Information needs
Location Manufacturing operation Raw material Equipment Labor skills Space Overhead
BZUPAGES.COM
Financial information needs
Preparation of budget (includes sales revenues expenditures)
Need identification of the benchmark for preparing pro forma statement in financial plan.
BZUPAGES.COM
Using the internet as a resource tool
Internet is the important source of information in the business plan for such segments like
Industry analysis Competitor analysis Planning Marketing strategy Use search engine that assist entrepreneur
in writing business plan.
BZUPAGES.COM
Razeena Ameen
07-25
BZUPAGES.COM
Writing the business plan:
BZUPAGES.COM
Outline of a business plan:
Introductory Page Executive Summary Environmental and Industry Analysis Description of Venture Production Plan Operational Plan Marketing Plan
BZUPAGES.COM
Organizational Plan Assessment of Risk Financial Plan Appendix (contains backup material)
BZUPAGES.COM
Introductory Page
Name and address of businessName and address of entrepreneurNature of businessStatement of financing neededStatement of confidentially of report
BZUPAGES.COM
Executive Summary:
What is the business concept or model?
How is this business concept or model unique?
Who are the individuals starting this business?
How will they make money and how much?
BZUPAGES.COM
Environmental and Industry Analysis:
Future outlook and trendsAnalysis of competitorsMarket segmentationIndustry and market forecasts
BZUPAGES.COM
Description of Venture:
Product(s)Service(s)Size of businessOffice equipment and personnelBackground of entrepreneurs
BZUPAGES.COM
Ayesha Yaseen
07-30
BZUPAGES.COM
Production plan
Details how the product will be manufactured Manufacturing process Physical plant Machinery and equipment Names of suppliers of raw materials
Operational Plan Description of company’s operations Flow of orders for goods and/or services Technology utilization
BZUPAGES.COM
Marketing plan
Describes market conditions and strategy related to how the product services will be distributed, priced and produced
Organizational Plan Form of ownership Identification of partners or principal
shareholders Authority of principals Management-team background Roles and responsibilities of members of
organization
BZUPAGES.COM
Assessment of Risk:-Identifies potential hazards and alternatives strategies to meet business plan goals and objective
Financial plan:-Projections of key financial data determine economic fesibilty and necessary financial investment commitment
BZUPAGES.COM
Using and Implementing The Business Plan The business plan is designed to
guide the entrepreneur through the first year of operations.
Implementation of the strategy contain control point to ascertain progress
Business plan not end up in a drawer somewhere once the financing has been attained and the business launched.
BZUPAGES.COM
Updating the Plan.
The most effective business plan can become out-of-date if condition change.
If the change are likely to affect the business plan, the entrepreneur should determine what revisions are needed.
In this manner, the entrepreneur can maintain reasonable targets and goals and keep the new venture on a course that will increase probability of success.
BZUPAGES.COM
Why Some Business Plans Fails Goals set by the entrepreneur are
unreasonable. Goals are not measurable The entrepreneur has not made a total
commitment to the business or to the family. The entrepreneur has no experience in the
planned business. The entrepreneur has no sense of potential
threats or weaknesses to the business. No customer need was established for the
proposed product or service.
BZUPAGES.COM