Entrepreneur

Entrepreneur means one who undertakes an enterprise especially a contractor

acting as intermediary between capital and labour.
The entrepreneur is the economic agent who unites all means of
production….the labor force of the one and the capital or the land of the others
and who finds in the value of products his results from their employment
reconstitution of the entire capital that he utilizes and the value of the wages,
the interest and the rent which he pays as well as profits belonging to himself.

Features of Entrepreneur
1. Change Agent: Recognizes the need for change and directs it.
 Key person to initiate that change.
 Catalyst for change.
2. Self Confidence: capable of overcoming any future problem.
 Work as cheerleader and coach
3. Energy Level: Ability to work for long hours, high energy level
4. Level of Risk: risk-takers, tend to take moderate risk rather than
little risk or excessive risk.
5. Need for Achievement: They set ambitious short-term and long-
term goals that challenge them
6. Tolerance for Ambiguity: trait for entrepreneurs who face a great
deal of uncertainty at the time of starting new enterprise.
7. Locus of Control

Functions of An Entrepreneur
1. Innovation: Doing the new things or doing of things that are already
being done in a new way.
2. Risk-Taking: Should try to reduce the level of uncertainty by
analyzing the problem in proper perspective.
3. Organization and Management: Includes planning of an enterprise
coordination, control and supervision.
4. Business Decision: Decisions with regard to what to produce, how to
produce, for whom to produce are to be taken.

Characteristics of Successful Entrepreneur

 Do what you enjoy
 Take what you do seriously
 Plan everything
 Manage money wisely
 Ask for the sale
 Remember it's all about the customer
 Become a shameless self-promoter
 Project a positive business image
 Get to know your customers
 Level the playing field with technology
 Build a top-notch business team
 Become known as an expert
 Create a competitive advantage
 Invest in yourself
 Be accessible
 Build a rock-solid reputation
 Sell benefits
 Get involved
 Grab attention
 Master the art of negotiations
 Design Your workspace for success
 Get and stay organized

Types of Entrepreneurs
1. Innovative Entrepreneurs: Who believe in introducing new goods, adopt new
method of production, develop new market, restructure the organization under
their command.
2. Imitating Entrepreneurs: Unable to innovate the changes themselves but are
capable enough to imitate the techniques and technology innovated by
innovating entrepreneurs. Developing economies or underdeveloped
economies need this type of entrepreneurs.
3. Fabian Entrepreneurs: shy and lazy in their working, conscious in their
dealings and believe in skepticism in initiating any change, no will power,
believe in tested routes of production and not interested in taking risk, avoid in
taking challenges
4. Drone Entrepreneurs: Are not inclined to bring changes in their production
system as demanded by the change in consumer preferences, technological
innovation, economic and social behavior of the prospective customers,
traditional in their approaches, fail to use these opportunities in profitable way.
Due to this reason they
fail to earn profit or even suffer loss.

Social Entrepreneur
1. Individuals with innovative solutions to society's most pressing and
discouraging social problems.
2. Ambitious and persistent, tackling major social issues
3. Change agents in the economy.
4. implements them on a large-scale for the benefit of the humanity.
5. are innovative, highly-motivated, and critical thinkers.
6. these attributes are combined with the drive to solve social problems.

Difference between business and social entrepreneurship

Business Entrepreneurship Social Entrepreneurship
Motive: Profit Motive: Social Impact
Change face of business Change agents for society
Satisfied by Satisfied by generating value that
establishing a new business benefits disadvantaged people in
the society.
Value creation: Profit Value creation: Social impact
May create entirely a new industry. Offers new solutions to social problems
and then implements them on a large
scale
Intrapreneurship
1. Corporate entrepreneur.
2. Person within the large organization who handles new ventures based on
creativity and innovation.
3. Strategic business units (SBU) established to promote intrapreneurial spirit.
4. Creative, visionary and flexible.
5. Must be able to work within the existing corporate structure and climate.
6. Adopted by many firms as a strategy for innovation and growth.

Positive of intrapreneurship over entrepreneurship

 Funding :company/organization often has capital to fund the

project
 Manpower :Intrapreneurs do not have to worry about finding the
talent to get tasks performed
 Branding: Intrapreneurs can use the branding of the organization to
get their ideas to take root
Approaches of Entrepreneurship

 Economic Approach: Making decisions about obtaining and using

resources while consequently assuming the
risk of enterprise,
Recognize potential demand for goods and
Services, reacts to economic change,
change agent who transforms resources into
useful goods and services that lead to industrial
growth.
 Sociological Approach: Expected to be governed by the wishes
of the society, customers, ethical values.
Society’s values are the most important determinant
of the attitudes and role expectations.

 Psychological Approach: Developed by McClelland and Hagen.

It is the high need for achievement which
drives people towards entrepreneurial activities.

Theories of Entrepreneurship

1. Innovation Theory:
What It Says: This idea was thought up by someone named J.A. Schumpeter. Schumpeter said that an entrepreneur is like a
person who comes up with new and different things. There are five main ways they can do this:
 They can make new things that people haven't seen before or make things better.
 They can find better ways to make stuff.
 They can find new places to sell things, even if no one's sold there before.
 They can discover new places to get the stuff they need to make things.
 They can change the way businesses work, like making a new way of doing things or breaking up big companies.
Why It's Important: This theory talks about how people who come up with new ideas and change the way things are done
are really important for businesses and the world.
Good Things:
 It makes businesses and the world better by bringing new ideas.
 It can help make new things, new ways to do stuff, and new places to sell things.
Not So Good Things:
 It doesn't talk much about people who run existing businesses without making new stuff.
 It mostly talks about big changes, but not as much about other important things like taking risks and organizing.
Something to Think About:
 Some countries have more people who come up with new ideas than others, but this theory doesn't really explain
why.

Example: Apple Inc and iphone: Introduction of a New Good:,New Method of Production:,
Opening of a New Market:, Conquest of a New Source of Supply:, New Organization of Industry:
2. Need Achievement Theory
What It Says: This idea was made by a person named David C. McClelland. McClelland wanted to know what makes some
people really good at business and making money. He found out that some people are really good at business because they
want to do well for themselves, not just to show off to others.
Why It's Important: This theory helps us understand that some people become successful entrepreneurs because they have
a strong desire to do well and accomplish things for themselves.
Good Things:
 It tells us that people who really want to do well for themselves can become great at running businesses.
 It talks about how some people are good at finding new and better ways to do things and making decisions even when
they're not sure what will happen.
Not So Good Things:
 It might not explain everything about entrepreneurship, like other skills entrepreneurs need beyond just wanting to do
well.
Something to Think About:
 To make more successful entrepreneurs, it's important to encourage kids to want to do well for themselves. Also,
teaching and training can help current entrepreneurs get even better.

Example: Elon Musk and SpaceX: Inner Desire for Accomplishment:, Doing Things in New and
Better Ways:, Decision Making Under Uncertainty:, Striving for Excellence:,

3. Status Withdrawal Theory

What It Says: E. Hagen made up a theory about how societies change. This theory explains that when some groups of
people feel like their values and how important they are in society aren't respected, they start coming up with new ideas to
get respect.
Why It's Important: This theory helps us understand that when people or groups feel ignored, they might start new things,
like businesses, to gain back their respect.
Good Things:
 It tells us that when a group loses their important position in society, they might work hard to create new things and
businesses.
 It says that when people feel they aren't getting the respect they deserve, they might become entrepreneurs to show
their value.
Not So Good Things:
 It might not explain everything about why people become entrepreneurs. Some entrepreneurs are driven by different
reasons, like wanting to make new products or solve problems.
Something to Think About:
 This theory helps us see that when people don't feel important, they might work really hard to become successful
entrepreneurs. But not all entrepreneurs are in this situation; some start businesses for other reasons.

Example: Civil Rights Movement and African American

Entrepreneurship : This movement aimed to address racial discrimination and gain equal rights for African
Americans. The experiences of African American entrepreneurs during this period illustrate how status withdrawal can
influence entrepreneurial behavior., Feeling of Disrespect and Status Withdrawal:, Entrepreneurial Response:,
Reclaiming Lost Prestige:, Transforming Society

4. Theory of Social Change:

What It Says: Max Weber, a thinker, said that how societies change can affect how businesses grow. Weber's theory talks
about how the beliefs and values of a society impact the growth of businesses. He focused on the connection between a
specific kind of religious belief and the rise of capitalism.
Why It's Important: This theory helps us understand that the values and beliefs of a society can affect how businesses and
the economy grow.
Good Things:
 It tells us that how people believe and what they value can influence how they do business.
 It says that certain values can lead to more business growth.
Not So Good Things:
  It might not explain all the reasons why businesses grow or change.
 It focuses a lot on one specific religious belief and might not fit all societies
Something to Think About:
 This theory teaches us that the beliefs of a society can shape how they do business. But there are many other factors
that influence businesses too, like technology and culture.

Example: Gandhi's Influence on Entrepreneurial Approach in India

Gandhi's Philosophy:, Connection to Entrepreneurship., Socially Responsible Entrepreneurship, Example of Khadi
Movement:Challenges and Critiques

5. Theory of Social Behavior:

What It Says: Kunkel developed a theory that explains how people become entrepreneurs. This theory talks about how
society, politics, and the economy influence the number of entrepreneurs. It focuses on how people's actions are related to
their surroundings and how they're rewarded for their actions.
Why It's Important: This theory helps us understand how the environment, society, and the economy can affect how many
people become entrepreneurs.
Good Things
 It tells us that people do certain things, and if society likes those things, they get rewarded.
 Rewards encourage people to keep doing those things, which become entrepreneurial behaviors.
Not So Good Things:
.
 It might not explain everything about why people become entrepreneurs. Not all entrepreneurial behaviors are
based only on rewards.
Something to Think About:
 This theory teaches us that society and the environment influence who becomes an entrepreneur. But there are
other factors too, like personal passion and unique circumstances.

Example: E-commerce Entrepreneurs and Changing Market Structure

Changing Market Structure: , Entrepreneurial Response:, Social Acceptance and Rewards:, Reinforcing Behavior:

6. Theory of leadership:
What It Says: According to Hoselitz, being an entrepreneur is not just about making money. It's also about having good
leadership and management skills. He explains that a successful entrepreneur needs to be more than just profit-oriented.
They need skills in leading and managing people effectively.
Why It's Important: This theory helps us understand that leadership and management skills are crucial for entrepreneurs,
along with the ability to make money.
Good Things:
 It tells us that entrepreneurs need more than just a desire for profit. They need to be good leaders and managers
too.
 It explains that different types of leadership styles can affect how entrepreneurs run their businesses.
Not So Good Things:
 It might not explain all the reasons why people become entrepreneurs. There are other factors like personal
interests and opportunities.
Something to Think About:
 This theory teaches us that entrepreneurs need leadership and management skills. But there are other things that
also matter, like economic and political conditions.

Example: Steve Jobs and Transformational Leadership

Transformational Leadership:, Entrepreneurial Leadership:, Visionary Approach:, Impact on the Organization,
Leadership Style's Influence on Entrepreneurial Success:
7. Theory of Model Personality
What It Says: Cocharn's theory is about how cultural values and social expectations affect the supply of entrepreneurs.
Entrepreneurs are not unusual people, but they represent what society considers a model personality. Cocharn explains that
an entrepreneur's behavior is influenced by their own attitudes, what society expects from them, and what the job requires.
Why It's Important: This theory helps us understand that society's values and expectations shape who becomes an
entrepreneur and how they act.
Good Things:
 It tells us that entrepreneurs aren't very different from other people; they're just seen as the ideal kind of person in
society.
 It explains that how entrepreneurs act depends on their own thoughts, what society thinks, and what the job needs.
Not So Good Things:
 It might not explain all the reasons why people become entrepreneurs. Factors like profit and personal interests are
also important.
Something to Think About:
 This theory teaches us that society's values and expectations are important for entrepreneurs. But there are other
things, like wanting to make money or having specific skills, that matter too.

Example: Mark Zuckerberg and Socially Modeled Entrepreneurship

Importance of Entrepreneurship

1. Development of Managerial Capabilities

2. Creation of Organizations
3. Improving Standard of Living
4. Means of Economic Development
5. Allows People to Bring Creativity and Innovation
6. Provide Employment Opportunities
7. Create Positive Impact in Society
8. Establish Personal Relationships with Customers

Difference between Entrepreneur and Entrepreneurship

1. An individual/A process
2. Creator/creation
3. Visionary/vision
4. Innovator
5. Risk-bearer
6. Motivator
7. Organizer
8. Leader
9. Imitator
Creativity
 The process of developing a novel idea or a new way of approaching an
old idea.
Nature of Creativity
1. Approach of outputs of creative efforts: Creativity means discovering new things that are
also practical and valuable.

2. Approach of Novel Hypothesis:Being creative involves making things that are really unique and
have a big impact. These things should solve problems and change the way we see the world.

3. Approach of Creative Process: Creativity is about thinking in new and fresh ways. It's like
connecting ideas that haven't been connected before and exploring new possibilities. This process is important, even if the
end result isn't always creative.

4. Approach of States of the Being: Creative people express their feelings, care about others, and
want to grow. They have special qualities that set them apart, like loving complex ideas, having unique thoughts, and
noticing unusual things.

Types of Creativity
1. Abraham Maslow:

 Primary Creativity: This is when something is created spontaneously, like a child's imagination.
 Secondary Creativity: This is when ideas and insights are used deliberately and skillfully to make something new, like
inventing things.

2. Ainsworth Land:

 Elaborative: This is about adding details and making something more complex.
 Improvement Oriented: Making things better or more effective.
 Combination or Syntheses: Mixing different good ideas to create something new and high-quality.
 Transformation: Changing something completely into something else.

3. Iring Taylor:

 Spontaneous Creativity: Like Maslow's primary creativity, creating things spontaneously.

 Technical Creativity: Making processes better and more efficient.
 Incentive Creativity: Combining materials or ingredients in new and smart ways.
 Innovative Creativity: Applying basic ideas in new and big ways, like using psychology to improve staff motivation.
 Emergentive Creativity: Creating revolutionary ideas that change an art or science, like Freud's psychoanalysis or
Einstein's theory of relativity.

Creative Process:
1. Generation of Ideas
2. Idea Development
3. Implementation

Innovation Process Step by Step

1. Start with a Problem:The innovation process begins by recognizing a problem or goal. This
could be something the business hasn't achieved yet.
2. Turn Problem into Challenge: Change the problem into a clear and short question, like "How
can we make product X better?" or "How do we reduce waste in manufacturing?" This makes it easier to find solutions.
3. Get Creative Ideas: share the challenge with colleagues, customers, or partners to collect ideas. This
can happen through brainstorming, using software, or assigning a team to come up with ideas.
4. Work Together to Generate Ideas: People work together to come up with ideas. This can
be done in brainstorming sessions, using special software, or by diverse teams.
5. Combine and Evaluate Ideas: Group similar ideas together to make the process more
organized. Then, use a scoring system to evaluate ideas based on business criteria. The best ideas move forward.
6. Develop Ideas: Depending on the challenge and ideas, turn them into prototypes, models, or test
them in surveys. This step helps make sure the ideas work in the real world.
7. Put Ideas into Action: Finally, take the best ideas and make them a reality. This could mean creating
new products, changing processes, or doing things that bring value to the business. This is when creative ideas become
real innovations.

Sources of Business Ideas

1. Consumers: People who want products and services drive business ideas. As people's preferences and likes
change, entrepreneurs need to know what customers want. Feedback from consumers about what they use and want in
the future helps entrepreneurs understand their needs.
2. Existing Products and Services: Looking at what's already in the market can inspire new ideas. By
analyzing existing products and services, entrepreneurs can identify their weaknesses and come up with better
alternatives. Many businesses start to provide improved options.
3. Distribution Channels: The middlemen between producers and customers, like wholesalers and retailers,
are great sources of ideas. They are in direct touch with customers and understand their desires. They can suggest new
products or changes to existing ones based on customer feedback.
4. Government: Governments create rules and regulations that can spark business ideas. Sometimes, regulations
lead to new product ideas. For example, a ban on plastic bags could inspire entrepreneurs to create eco-friendly
alternatives like jute bags. Government agencies and patents can also provide ideas.
5. Research and Development (R&D): Research and development activities inside or outside a
company generate new ideas. R&D helps figure out what new products or changes to existing ones could satisfy customer
needs. Many new products and businesses come from R&D efforts.

Methods of Generating New Ideas

1. Focus Groups: A leader guides a group of people through an open discussion. This helps gather and evaluate
ideas. It's great for generating and testing concepts.
2. Brainstorming: People get creative by coming up with lots of ideas. This works best when focusing on a
specific product or market. Rules are: No criticism. Let ideas flow. More ideas are better. Combine and improve ideas.
3. Brainwriting: It's like written brainstorming. Participants write ideas on special forms or cards that go around
the group.
4. Problem Inventory Analysis: People are given a list of problems and asked which products have those
problems. Be careful when evaluating results as they might not always mean a new business idea.

Innovation
Types of Innovation

1. Breakthrough:
 Rare but important.
 Lays the foundation for future innovations in an area.
 Protected by patents, trademarks, and copyrights.
2. Technological:
 Happens more often but not as big as breakthroughs.
 Brings advancements to products or markets.
 Needs protection.
3. Ordinary:
 Very common.
 Makes existing technological innovations better or appeals to a different market.
 Usually comes from studying markets and what people want.’
Entrepreneurial Process

1. Idea Generation:

Germination: Like planting a creative seed based on interests or curiosity.

Preparation: Focused ideas are explored for solutions. Inventors set up labs, designers engineer new products, and
marketers study consumer habits.
Incubation: Subconscious mind connects unrelated ideas for resolution.

2. Feasibility Study:

Illumination: Idea is seen as a realistic creation, a crucial step for meaningful development.
Verification: Last step to check if idea is practical and useful for society and entrepreneur.

Business Incubation
A flexible process that helps new and small businesses survive and grow in their early
stages.
Incubators support startups, creating jobs, improving local economies, and promoting
growth in specific industries.

Incubators Offer:

Business Support: Tailored services for startups, from virtual help to advanced facilities.
Nurturing Environment: Provides a supportive environment for entrepreneurs as they start their businesses.
Access to Experts: Connects startups with experts, financing, and other entrepreneurs.
Reduced Costs: Shortens the time and lowers the cost of starting and growing a business.
Networking: Facilitates networking and sharing resources among startups.
Equipment & Services: Shared resources like equipment and marketing assistance.

Goal of Incubators:
Increase startup success rate.
Accelerate growth.
Strengthen economies and create jobs.

In simple terms, business incubation is like a supportive environment for new businesses. It helps startups grow, connect
with experts, and succeed faster. Incubators offer resources, connections, and support to increase the chances of business
success.

Intellectual Property's Role in Innovation

IP and Innovation:
 Intellectual Property (IP) tools help reduce risks and ensure acceptable returns for players involved in making
innovations successful.
 IP is crucial for taking new technology to the market and enhancing the competitiveness of tech-based
businesses.

Benefits of IP in Innovation:
 Successful inventions lead to better ways of doing things or new profitable products.
 Innovation is a process, not just invention, from idea to product launch.
 IP rights, like patents, help make innovation successful.

Strategic Use of IP:

 Innovations have a better chance in the market with effective use of IP.
 Focusing only on patents doesn't capture the full role of IP in innovation.

Wider Role of IP:

 IP aids in overcoming obstacles in innovation ("valley of death").
 It helps secure financing, technical resources, and strong business partnerships.

In simple terms, Intellectual Property (IP) tools are vital for making innovations successful. They reduce risks, enhance
competitiveness, and provide benefits beyond just patents. IP plays a significant role in the entire innovation process,
from idea to market, and even helps businesses navigate challenges and form partnerships.

Porter’s five Competitive Forces Model

The Five Competitive Forces Model, introduced by Michael Porter, is a framework used to analyze the competitive
environment of an industry. It identifies five key forces that shape the intensity of competition and profitability within a
market:

Threat of New Entrants:

This force considers how easy or difficult it is for new companies to enter the market.
High barriers to entry (like high startup costs or strong brand loyalty) make it harder for new competitors to enter,
reducing competition and increasing profitability.
Bargaining Power of Suppliers:
Suppliers provide the resources needed for production.
If suppliers have high bargaining power, they can raise prices or reduce quality, affecting the profitability of businesses
relying on them.
Bargaining Power of Buyers:
Buyers are the customers purchasing products or services.
If buyers have strong bargaining power, they can demand lower prices or better quality, potentially reducing profits for
businesses.
Threat of Substitute Products or Services:
This force considers the availability of alternative products or services that can fulfill the same need.
If substitutes are readily available and offer better value, businesses may lose customers and face reduced profits.
Rivalry Among Existing Competitors:
This force assesses the intensity of competition among existing companies in the market.
High rivalry means businesses are competing fiercely, leading to price wars and reduced profits.

Business Plan
Introduction:

Planning is crucial for success in any venture.

It involves setting specific, measurable goals and directions for the future.

Critical Planning Factors:

Realistic goals: Specific, measurable, and time-bound.
Commitment: Support from family, partners, and team members.
Milestones: Sub-goals for evaluating progress.
Flexibility: Preparing for obstacles and alternative strategies.

Understanding the Business Plan:

A business plan is essential for raising funds and expressing the uniqueness of the venture.
Each plan is distinct, reflecting the entrepreneur's individuality.

Purpose and Contents of a Business Plan:

A comprehensive plan details the venture's operation and management.
It covers project details, marketing, research, manufacturing, financing, and milestones.
The plan is the entrepreneur's road map and investment tool.

Benefits of a Business Plan:

Forces critical assessment and objective view of the venture.
Analyzes competitive, economic, and financial aspects.
Provides measurable goals and benchmarks for comparing forecasts to results.
Acts as a communication tool for investors and guides the venture's success.
Demonstrates market potential, risk management, and financial sustainability.

Conclusion:
A well-prepared business plan is irreplaceable and essential for a successful enterprise.
Thoroughness and completeness in planning earn respect and support from outsiders.
Major contents of Business Plan

1. General Information: Information on product profile and product details.

2. Promoter: His/her name, educational qualification, work experience, business related
experience.
3. Location: Exact location of the business, lease or freehold, locational advantages.
4. Land and Building: Land area, construction area, type of construction, detailed plan and
estimate along with plant layout.
5. Plant and Machinery: Details of machinery required, capacity, suppliers, cost, various
alternatives available, cost of miscellaneous assets.
6. Production Process: Description of production process, process chart, technical
knowhow, technology alternatives available, production programme.
7. Utilities: Water, power, steam, compressed air requirements, cost estimates, source of
utilities.
8. Transport and Communication: Mode, possibility of getting costs.
9. Raw Material: List of raw material required by quality, sources of procurement, cost of
raw material, tie-up arrangements, if any, for procurement of raw material, alternative raw
material, if any.
10. Manpower: Manpower requirement by skilled and semi-skilled, sources of manpower
supply, cost of procurement, requirement for training and its cost.
11. Products: Product mix, estimated sales, distribution channels, competitions and their
capacities, product standard, input-output ratio, product substitute.
12. Market: End-users of product, distribution of market as local, national, international,
trade practices, sales promotion devices and proposed market research.
13. Requirement of Working Capital: Working capital required, sources of working capital,
need for collateral security, nature and extent of credit facilities offered and available.
14. Requirement of Funds: Break-up of project cost in terms of costs of land, building,
machinery, miscellaneous assets, preliminary expenses, contingencies, and margin money
for working capital, arrangements for meeting the cost of setting up of the business.
15. Cost of Production and Profitability of first ten years.
16. Break-Even Analysis
17. Schedule of Implementation
------------------------------------------------------------------------------------------------------------------------
Cover Page:
Include company name, address, phone number, and issuance date.
Ensure contact details are present for easy communication.
Use a well-designed title page with a copy number legend.

Table of Contents:
Encompass all sections, tables, figures, references, and appendices.

Executive Summary:
A brief overview of the entire plan, usually two to three pages.
Summarizes key aspects after the completion of the plan.
Touches on the venture, market opportunities, financial projections, and technology.
Highlights the company's status, products, benefits to customers, and objectives.
States financial forecasts, financing needs, and investor benefits.

Outlines of a Business Plan

Section I: Executive Summary

No more than three pages.
What, how, why, where and so on must be summarized.

Section II: Business Description Segment

Name and Address of Business
Name(S) and Address(es) of Principal(s)
Nature of Business
Statement of Financing Needed
Statement of Confidentiality of Report
Key Elements:
What type of business will you have?
What products or services will you sell?
Why does it promise to be successful?
What is the growth potential?
How is it unique?

Section III: Marketing

A. Research and analysis
Target market (Customers) identified
Market size and trends
Competition
Estimated market share
B. Marketing plan
Market Strategy – sales and distribution
Pricing
Advertising and promotions
Key Elements:
Who will be your customers? (target market)
How big is the market? (Number of customer)
Who will be your competitors?
How are their businesses prospering?
How will you promote sales?
What market share will you want?
Do you have a pricing strategy?
What advertising and promotional strategy will you use?
Section IV: Operations
Identify Location
Advantages
Zoning
Taxes
B. Proximity to supplies
C. Access to transportation
Key Elements:
Have you identified a specific location?
How you outlined the advantages of this location?
Any zoning regulations or tax considerations?
Will there be access to transportation?
Will your suppliers be conveniently located?

Section V: Management
Management team – key personnel
Legal structure –stock agreements, employment agreements,
ownership
Board of directors, advisors, consultants
Key Elements:
Who will manage the business?
What qualifications do you have?
How many employees will you have?
What will they do?
How much will you pay your employees and what type of benefits will
you offer them?
What consultants or specialists will you use?
What legal form of ownership will you have?
What regulations will affect your business?

Section VI: Financial

Financial forecast
Profit and loss
Cash flow
Break-even analysis
Cost controls
Budgeting plans
Key Elements:
What is your total expected business income for the first year? (Forecast)
What is your expected monthly cash flow during the first year?
Have you include a method of paying yourself?
What sales volume will you need to make a profit during the three years?
What will be the break-even point?
What are your projected assets, liabilities, and net worth?
What are your total financial needs?
What are your funding sources?

Section VII: Critical Risks

Potential problems
Obstacles and risks
Alternative courses of action
Key Elements:
What potential problems have you identified?
Have you calculated the risks?
What alternative courses of action exist?

Section VII: Critical Risks

Transfer of asset
Continuity of business strategy
Identify successor
Key Elements:
Have you planned for the orderly transfer of the venture assets if ownership of the business
is passed to this corporation?
Is there a continuity of business strategy for an orderly transition?

Section IX: Milestone Schedule

Timing and objectives
Deadlines and milestones
Relationship of events
Key Elements:
How have you set your objectives?
Have you set deadlines for each stage of your growth?

Section X: Appendix
Letters
Market Research Data
Leases or Contracts
Price Lists from Suppliers
Key Elements:
Have you included any documents, drawings, agreements or other materials
needed to support the plan?
Are there any names of references, advisors or technical sources you should
include?
Are there any other supporting documents?