Professional Documents
Culture Documents
Development of Business Plan
Development of Business Plan
business plan?
The four most important reasons
for having a plan are:
1.The Plan Is Your Roadmap
2.The Plan Is Necessary For
Investors/Lender
3.The Plan Can Help You Track
Progress
4.The Plan Tests The Feasibility Of
Your Business Idea
Here you should try to briefly address the
following questions:
What type of business are you proposing? What is the
business concept?
What business/sector will you be operating in?
Broadly, what will your offering entail?
What are your general aims and goals for the business?
Where is it located? What facilities/amenities will it
include?
Who will the customers be?
Who will your competitors be?
OPPORTUNITY
SEEKING,
SCREENING, AND
SEIZING
OPPORTUNITY SEEKING
• Entrepreneurs are innovative opportunity
seekers. They have endless curiosity to discover
new or different ideas and see whether these
ideas will work in the marketplace.
Essential to an entrepreneur’s
opportunity seeking are the
entrepreneurial mind frame, heart flame,
and gut game
The entrepreneurial mind frame allows the
entrepreneur to see things in a very positive and
optimistic light in the midst of crisis or difficult
situations.
If there is one commonality between an inventor and
an entrepreneur, it is their surging passion or the
entrepreneurial heart flame. Driven by passion, they are
drawn to find fulfilment in the act and process of
discovery.
The heart flame is also about emotional intelligence or
EQ, which is often manifested in the entrepreneurs
efforts to nurture relationships with customers,
employees, and suppliers.
The final ingredient is the entrepreneurial gut game.
This refers to the ability of the entrepreneur to sense
without using the five senses. This is also known as
institution.
SOURCES OF OPPORTUNITIES
6. Assessing Competition
Market potential is also affected by the number of
establishments supplying and serving your target
customers.
7. Technology Assessment and Operations Viability
• In order to get the enterprise going, the entrepreneur must go through the
complexity of detailing the operations that would be required by the business,
which also includes technology assessments.
• There are at least four target customer expectations affecting the scale and
complexity of an enterprise’s operations:
1. Quantities Demand – to determine the needed capacity of operations
2. Quality specifications demanded – the quality of the raw materials,
assurance of process in transforming input to output
3. Delivery expectations – knowing how much, how frequent and when
to deliver to customers
4. Price expectations – the selling price of the product or service would
be evaluated by customers according to the value they would receive
Investment Requirements and
Production/Servicing Costs
• The entrepreneur needs to determine how much money is needed to start the
business opportunity with consideration to the technologies and operating levels
required.
1. Pre-Operating Costs
2. Production/Service Facilities Investment
3. Working Capital Investment
a. Employee salaries, wages and benefits
b. Rent and lease expenses
c. Utilities
d. Transportation
e. Fees and licenses
f. Commissions
Financial Forecasts and
Determination of Financial Feasibility
• Financial forecasts refer to the monetary transactions
that the business is expected to engage in.