ENTREPRENEURSHIP

BS-311
Lecture 4
Business Plan Development

By: Muhammad Nawaz

Lecturer, Institute of Business Studies.
KUST.
Topic: Business Plan Development
Outline

What is the Business Plan?

Scope and value of the Business plan
Writing the Business plan
Executive Summary
Environmental and Industry Analysis
Description of the Venture
Evaluating Business Plans:
Technical Business Plans
Using and Implementing Business Plans:
Business Plan Implementation
Business Plan Implementation Steps
Business Plan Implementation Objectives
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Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development

What Is the Business Plan?

 A business plan is a written document prepared by the entrepreneur that describes all

the relevant external and internal elements involved in starting a new venture.

 The business plan is like a road map for the business’ development.

Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development
Scope and value of the Business plan

 The business plan must be comprehensive enough to address the concerns of employees,
investors, bankers, venture capitalists, suppliers, and customers.

Three perspectives need to be considered:

 The entrepreneur understands the new venture better than anyone.

 The marketing perspective considers the venture through the eyes of the customer.
 The investor looks for sound financial projections.

Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development
Writing the Business plan

The business plan should be comprehensive enough to give a potential investor a

complete understanding of the venture.

 The name and address of the company

 The name of the entrepreneur and a telephone number
 A paragraph describing the company and the nature of the business
 The amount of financing needed
 A statement of the confidentiality of the report
 It also sets out the basic concept that the entrepreneur is attempting to develop.

Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development
Executive Summary

Issues that should be addressed include:

 Brief description of the business concept

 Any data that support the opportunity for the venture.
 Statement of you this opportunity will be pursued.
 Highlight some key financial results that can be achieved
 Because of the limited scope of the summary, the entrepreneur should ascertain what
is important to the audience to whom the plan is directed

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Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development

Environmental and Industry Analysis

Environmental factors are:

Economy
Culture
Technology
Legal concerns
Industry factors include:

Industry demand
Competition
Description of the Venture

Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
 Topic: Business Plan Development
Evaluating Business Plans

The following areas are of interest to lenders and investors:

The purpose of the loan (expansion or startup business)

Sources and uses of the funds
Management of the business
Industry information
Financial analysis
Collateral (secured)
Personal debt/credit history of borrower

Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development
Technical Business Plans
Technical Business Plans may be evaluated on the following:

Viability
Management background
Market advantage
Technology

 Using and Implementing Business Plans

 Using and Implementing Business Plans

Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development
Business Plan Implementation Steps

 Establishing the business objectives

 Defining and assigning the tasks needed to attain the objectives set
 Setting out a timescale
 Monitoring activities and progress

Business Plan Implementation Objectives

The objectives must be clearly and concisely set out, with the planning of key way stages.
They must at the same time be realistic, demanding but achievable.
Task
Timescale
Monitoring activity and Progress

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Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development
References

Recommended Text Books:

1. Robert D. Hisrich % Michel P. Peter “Entrepreneurship” (McGraw Hill) 5th Edition
International edition
2. Bruce A. Kirchott “Entrepreneurship & Dynamic Capital”
3. Zafar Altaf (Croom Helm) “Entrepreneurship in the Third World”.

4. http://www.crectirupati.com
5. https://mithunjadhav.files.wordpress.com
6. https://www.iare.ac.in

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Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk
Topic: Business Plan Development

Thank You . . .

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Course: Business Plan Development BS-311--Instructor of Entrepreneurship, Muhammad Nawaz, Lecturer, Institute of Business Studies, KUST----Email: Muhammad.Nawaz@kust.edu.pk