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Developing An Effective Business Plan - PPT 2
Developing An Effective Business Plan - PPT 2
ENTREPRENEURSHIP
EDUCATION
Is a learning of values, learning in real
time, producing and intelligent and
progressive mind and heart
It includes mind setting, values formation
and skills development
ENTREPRENEURSHIP
EDUCATION
DEVELOPING AN
EFFECTIVE
BUSINESS PLAN
Planning is essential to the
success of any undertaking
Main motive of business is for profit
Business men dont rush into business
unless they forecast their weaker areas
first
A strong plan can either sustain a
business or ruin it
Working with strategies
Learn to strategically place yourself out
of the scenario
You are never the main concern. You are
just the representing medium
A simple plan is always
the best
Choose your audience
Build a clear vision
Use business analysis
Set realistic goals
Consider different time frames
Be logical, rational, and conservative
Periodically review your plan
CRITICAL FACTORS
MUST BE ADDRESSED
WHEN PLANNING
No realistic goals
Failure to anticipate roadblocks
No commitment or dedication
Lack of demonstrated experience
( business or
technical )
No market NICHE ( segment)
Many entrepreneurs propose an
idea without establishing who the
potential customers will be. Just
because the entrepreneur likes
the product or service does not
mean others will buy it.
PITFALLS TO AVOID IN
PLANNING
A business plan is the written
document that details the proposed
venture. It must describe current
status , expected needs , and
projected results of the new business.
WHAT IS A BUSINESS
PLAN ?
The time , effort , research and discipline needed to put
together a formal business plan force the entrepreneur to
view the venture critically and objectively .
BENEFITS OF A
BUSINESS PLAN
The business plan provides for financial sources
the details of the market potential and plans for
securing a share of that market.
BENEFITS OF A
BUSINESS PLAN
Numerous professionals may be
involved with reading the business
plan such as venture capitalists ,
bankers , investors , potential large
customers , lawyers , consultants and
suppliers , entrepreneurs need to
clearly understand three main view
points when preparing the plan .
1. In-depth knowledge of the technology
or creativity involved .
2. Convincingly demonstrates the
benefits to users.
3. Understanding the actual market size
and also referred as Market Driven.
DEVELOPING A WELL-
CONCEIVED BUSINESS
PLAN
When presenting a business plan to
potential investors , the entrepreneur
must realize that the entire package is
important.
Appearance
Length
The cover and title page
The executive summary
The table of contents.
PUTTING THE
PACKAGE TOGETHER
Know organizational vision
Make futuristic but realistic goals
Understand whom to target and how
Edge and strength over your competition
Barriers to achieve the target
Better client servicing
Increase in target
New segments of scope
Time management
GUIDELINES TO REMEMBER
Keep the plan respectably short
Organize and package the plan appropriately
Orient the plan toward the future
Avoid exaggeration sales potential , revenue
estimates and the ventures potential growth
should not be inflated.
Highlight critical risks
Give evidence of an effective entrepreneurial team
Do not over diversify should not attempt to create
multiple markets or pursue multiple ventures.
Identify the target market
Keep the plan written in the third person he , they
or them.
Capture the readers interest.
GUIDELINES TO REMEMBER
Section I : Executive summary
Section II : Business description
A. General description of the business
B. Industry background
C. Goals and potential of the business and
milestones ( if any )
D. Uniqueness of product or service.
ELEMENTS OF A
BUSINESS PLAN
Section III : Marketing
A. Research and analysis
1. Target market ( customers ) identified.
2. Market size and trends
3. Competition
4. Estimated market share
B. Marketing plan
1. Market strategy sales and
distribution
2. Pricing
3. Advertising and promotions.
ELEMENTS OF A
BUSINESS PLAN
Section IV : Operations
A. Identify location
1. Advantages
2. Zoning
3. Taxes
B. Proximity to supplies
C. Access to transportation.
ELEMENTS OF A
BUSINESS PLAN
Section V : Management
A. Management team key personnel
B. Legal structure stock agreements ,
employment agreements , ownership
C. Board of directors , advisors
consultants.
ELEMENTS OF A
BUSINESS PLAN
Section VI : Financial
1. Profit and loss
2. Cash flow
3. Break -even analysis
4. Cost controls
5. Budgeting plans
ELEMENTS OF A
BUSINESS PLAN
Section VII : Critical risks
A. Potential problems
B. Obstacles and risks
C. Alternative course of action.
ELEMENTS OF A
BUSINESS PLAN
Section VIII : Harvest strategy
A. Transfer of asset
B. Continuity of business strategy
C. Identify successor
ELEMENTS OF A
BUSINESS PLAN
Section IX : Milestone schedule
A. Timing and objectives
B. Deadlines and milestones
C. Relationship of events.
ELEMENTS OF A
BUSINESS PLAN
HAVE A BUSINESS PLAN THAT IS
SIMPLE TO GRAB USER/REDEAR
ATTENTION