CONTENTS

1. HEURISTICS ANDGUT FEEL

2. BUSINESS PLAN
HOWTODEVELOP IT?
WHAT ALL IT SHOULD HAVE,WHAT IT SHOULDN’T HAVE?
 MEANINGOF HEURISTICS
 Ge ne rally, A he ur istic te chniq ue
me ans “find ” or “d iscove r”
 He ur istics can b e me ntal shortcuts that
e ase the cog nitive load of making a
d e cision
 Ap p roach to p rob le m solving or se lf-
d iscove r y that e mp loys a p ractical
me thod that is not g uarante e d to b e
op timal, p e rfe ct or rational, b ut which
is neve r the le ss sufficie nt for re aching
an imme d iate , short-te rm g oal.
Why Heuristics/ Shortcuts?
 THE
HEURISTICS
OF
• Heuristics provide the entrepreneur with cognitive problem
solving tools or shortcuts when they need to make a decision
or solve a problem.
• Uncertainty is a characteristic of entrepreneurship, which is
why entrepreneurs frequently use heuristics to make quick
ENTREPREN-
decisions
• Heuristics provide an entrepreneur with a competitive -EURS
advantage
• Heuristics that influence an entrepreneur's thinking includes
management, marketing, sales, strategy and human
resource
MEANINGOF GUT FEELINGS
Gut feeling is an instinct or intuition; an
immediate or basic feeling or reaction without a
logical rationale. These are sensations that
originates from heart, lungs, skin, bladder and
other organs, and not only heart.

Signs of a gut feeling

•a flas h of clarity
•te ns ion or tightnes s in your body
•goos e bumps or prickling
•a s inking s e ns ation in the pit of your s tomach
•s we aty palms or fe et
•thoughts that ke ep returning to a s pecific pers on or s ituation
•fee lings of peace , s afe ty, or happines s (after making a decis ion)
• Entrepreneurs who are not afraid to trust their guts, took brave
decisions, more risk and aim high- great elements of successful
entrepreneurial approach.
• Business owners and startup enthusiasts who are able to
recognize opportunity have strong advantage over the
competition
• Previous mistakes, failure and general experience makes the
entrepreneurs to connect the dots and grab the opportunity
based on their guts.
 HOW TO DEVELOP HEURISTIC BUSINESS PLAN

FOCUS - The over diversification of the venture should be avoided. Only one or two
aspects
of the products or services and markets should be included in the plan . It is not
possible for a new venture to describe in detail.

DO NOT CONCEAL – The management team should not have any myterious names
such as Mr. X who can be the future financial vice president . In fact all the information
of mr.X may be required by the investors alongwith his commitment to the business.

AVOID – The use of jargons should be avoided while describing the technical products
or manufacturing process as it could only be understoood by the experts. The venture
captialists do not wish to invest in those plans which are not easily understood by them.

AUTHENTIC INFORMATION – Depending upon the marketing study , the sales forcast
ing should done so that the determination of production facility which is required by
the planner can be estimated .
Proper Mission statement – The reason for going in the selected business can
be provided by the missin statement. The reason behind initiatives the health and fitness
center can be experince and belief of the planner. He may have new ideas which can be
implemented.

Long And Short Terms Goals- It is necessary to describe both the short and long
terms goals of the venture. Goals for coming 3 to 5 years may be termed as long terms
goals .

For Example- Future products offerings new franchisees or fitness, new marketing
plans, entering online world etc.

Short terms goals – Goals specifically for coming months or a year may be termed
as short term goals. It includes the lincense required, naming the venture, localisation of
the venture etc.
 WHAT ALL SHOULD HAVE A BUSINESS PLAN

A business plan is a written document that describes in detail how a

business—usually a startup—defines its objectives and how it is to go about
achieving its goals. A business plan lays out a written roadmap for the firm
from marketing, financial, and operational standpoints

Executive Summary
An executive summary briefly outlines the goals and objectives of the business. It
summarizes a description of the business, the products and/or services provided,
growth potential, funding requirements, a proper plan on how you will repay
loans, if any, etc. Sometimes, you might require to show the business plan you
formulate to investors and financiers. Therefore, you should ensure that you get to
the to-the-point in the summary.
Description of the Business
This is where you introduce readers to the business. Describe the products and
services that your business plans to provide and where and how you plan on
providing these to your potential customers. By now, you would need to have a
clear idea about which industry corresponds to your business and who your
target customers are going to be.

Analysis of Market Opportunities and Competition

A thorough market research is crucial for your business. This research should
analyze the buying habits of customers, purchasing cycle, their willingness to
accept new products and services etc. In short, you would need to determine
whether there is a viable market for the products and/or services your business
will offer.

Marketing and Sales

This section should comprise a layout of your marketing
plan. One of the primary purposes of this section is to find
ways to spread awareness of the products and services
among your target customers. Marketing involves
advertising and promoting your products while maintaining
proper public relations
 Business Operations and Management
This section is dedicated to how you plan on running the business. This may
include requirements related to staffing, logistics and development of the business.
Also, the tasks assigned to every division, responsibilities of the management team
etc. are included. Some other aspects that you need to consider are infrastructure,
working equipment, WiFi requirements and so on

Finances
The success or failure of a business boils down to its profits and this section will
help in planning how to keep it steady. The major aspects include:• An income
statement comprising the sources of the business’s cash generation•

Competitive analysis
Your business plan should also include a detailed competitive analysis that clearly outlines a
comparison of your organization to your competitors. Outline your competitors' weaknesses and
strengths and how you anticipate your company to compare to these. This section should also include
any advantages your competition has in the marketplace and how you plan to set your company
apart. You should also cover what makes your business different than other companies in the industry,
as well as any potential issues you may face when entering the marketplace if applicable.
Products and servics description
Use this section to further expand on the details of the products and services your
company offers that you covered in the executive summary. Include all relevant
information about your products and services such as how you will manufacture them,
how long they will last, what needs they will meet and how much it will cost to create
them

PESTLE ANALYSIS
Political Factors When looking at political factors, you are looking at how
government policy and actions intervene in the economy and other factors that
can affect a business. Like Tax Policy
Trade Restrictions
Tariffs Bureaucracy

Economic Factors
Economic Factors take into account the various aspects of the economy, and how the
outlook on each area could impact your business. They include the following
Economic Growth Rate
Interest Rates
Exchange Rates
Inflation
Unemployment rates.
 Social Factors
PESTEL analysis also takes into consideration social factors, which are related to the
cultural and demographic trends of society. Social norms and pressures are key to
determining consumer behavior. Factors to be considered are the following
Cultural Aspects & Perceptions
Health Consciousness
Populations Growth RatesAge Distribution
Career Attitudes
Technological Factors
Technological factors are linked to innovation in the industry, as well as innovation
in the overall economy. Not being up to date with the latest trends of a particular
industry can be extremely harmful to operations. Technological factors include the
following: R&D Activity
Automation
Technological Incentives
The Rate of change in technology
Environmental Factors
Environmental factors concern the ecological impacts on business. As weather
extremes become more common, businesses need to plan how to adapt to these
changes.
Legal Factors

There is often uncertainty regarding the difference between political and legal
factors in the context of a PESTEL analysis. Legal factors pertain to any legal forces
that define what a business can or cannot do. Political factors involve the
relationship between business and the government. Political and legal factors can
intersect when governmental bodies introduce legislature and policies that affect
how businesses operate.Legal factors include the following:
Industry Regulation
Licenses & Permits
Labor Laws
Intellectual Property
 MEANING OF PITCHING
• Pitching in business refers to
presenting business to another
Party.

• A business pitch needs to give

your audience a clear understanding
of your plan or goals.

• The entrepreneur will need financing in

order to be able to develop his product or
service to attract investors to develop a
strong and engaging enough argument
for them to their start-up.
 TYPES OF PITCHING

 The one word pitch.

 The social media pitch.

 The elevator pitch.

 The cold call pitch.

 The email pitch.

 The follow up pitch.
 ELEMENTS OF PITCHING

• Understand your audience.

• Make your numbers tell a story.

• Present yourself the way you want

To be seen.

• Build trust by avoiding

mistakes.
 PURPOSE OF PITCHING
The goal of a business pitch is either to attract an investors
attention or to outline the investment opportunity.

• Identifying customer needs

• What the business does
• Who has created the business
• Business model
• Industry analysis
• Marketing strategy
HOW TO PITCHING YOUR STARTUP
• First of all mention
Name of the company.

• Secondly defined offering

Must be short ,simple and
Capable of being understood
by everyone like a website.

• Defined audience is the initial

Group of people that you will
Market offering to.
 Pitching to investors

• Know your business, market

and competition inside and
out prepared to explain
The problem your business
Solves.
• Listen question investors
ask and answer them directly
• Dress equal to your audience
not more or less. if you are
meeting investment bankers
 Value of a business plan
• Reduction in Emotional bais :The business plan helps the entrepreneurs to develop judgement about the
pros and cons about the business.
• Justify One’s ideas: The entrepreneurs will be able to convert their thoughts & dreams into
reality.Rational thinking about the plans & ideas of the venture will make the concept clear.
• Develop consistent strategy: The entrepreneurs thought their business plan help in developing image that
they want to convey to the customers.It also helps in expressing the related future approaches.
• Achieve One’s Commitment: It serves a tool to measure the level of involvement &dedication of all the
partners in the business before taking any action.Many excellent ideas fail at the last hurdle because of
lack of commitment & dedication on the oart of members.
• Action plan : A business plan talks about the manner in which the operations of the business will take
place in the market.The business plan keeps the enterpreneurs concentrated & channelise the energy of
the entrepreneurs.
• Fundraising : The main need of the business plan is to create an interest in prospective investors about
the potential of the company so that they can invest in the company.The investment can be in the form of
loans or equity.
Reasons for Failure
of business plan
 Guidelines for developing an effective
business plan
• Preciseness : Busness plan should be short as possible
having the description & scope of the venture.All the
relevant aspects that are crucial for generating the interest
of investors should be clearly described in business plan.

• Focus :The over diversifcation of the venture should

be avoided.Only one or two aspects of the Products
or services should be included in plan.It is not
possible for a new venture to describe in details.
• Avoid :The use of jargons should be avoided while describing
thetechnical products as it could only be understood by
experts.The venture capitalists don’t wish to invest in those plans
which are not easily be understood by them.

• Authentic Information: Depending upon the marketing study ,the sales

forecasting should be done so that the determination of production facility
which is requires by the planner can be estimated.There should not be any kind
of vaguenessin the estimation as this will give a picture of unclear planner.

• Genuineness and Objectivity : Genuineness from

the planner is of utmost importance in making various
estimations & risk analysis.
• Proper Mission Statement: The reason behind
initiating the health & fitness centre can be the
experience of the planner.He may have some ideas
which can be implemented.It should be precise.

• Long-term and short-term goals: Goals for coming 3 to 5 years

may be termed as long term goals. These may included future
product offerings, new marketing plans, entering online world etc.
Goals for coming months or a year is called short term goals. These
may include licenses required , naming the venture etc.