MGT602 Theme08 slides.ppt
- 1. MGT602 Theme-08 videos105-114 Business Idea and Business Plan
- 2. Basic Questions to be considered 1. What is a Business Plan? 2. Why Business Plan is prepared? 3. For whom Business Plan is prepared? 4. What is the extent of Business Plan? 5. What are Features of a Business Plan? 6.What is strategic arrangement of Business Plan? or What are its Contents?
- 3. Basic Questions to be considered How a Business Plan shoud practically be prepared? Or How to write a Business Plan?
- 4. 1. What is a Business Plan? Its made of two words a. Business b. Plan
- 5. a. Business “Any economic activity undertaken to earn profit by combining resources to deliver value to society in response of whose unmet need it is started”
- 6. b. Plan Product or Result of Planning What is Planning? All about: 1. Where am I? ( Situation Analysis) 2. Where do I want to go? (Destination) 3. How will I get there? (Road Map/Way Out)
- 7. b. Plan “A document which contains all the necessary information required to start, run ,grow and shut down the venture profitably”. “A mega document which contains different but related documents covering different aspects of a new venture”.
- 8. 2. Why Business Plan is prepared? It guides an entrepreneur to put his dream to practice. Model
- 9. 3. For whom Business Plan is prepared? A. Internals: a. Entrepreneur b. Potential employees B. Externals a. Potential Customers b. Potential Suppliers c. Potential Investors
- 10. 4. What is the extent of Business Plan? Following factors determine the extent of Business Plan: a. Entrepreneurs orientation, ability and preference b. Complexity of business c. Level of Competition d. Level of uncertainty e. Available time & money resources
- 11. 5. What are Features of a Business Plan? Comprehensive Communication Guidance Formal Planning Process
- 12. 6.What is strategic arrangement of Business Plan? (Contents) A. Title/Cover Page B. Table of Contents C. Executive summary D. General Business Description E. Management Plan F. Total Product & Service Plan
- 13. 6.What is strategic arrangement of Business Plan? (Contents) G. Marketing Plan H. Operations & Production Plan i. Financial Plan J. Appendix
- 14. A. Title/Cover Page Name of the venture Logo Nature of business Legal status//Type of ownership Name of key entrepreneur Amount of purposed investment Statement of confidentiality Location & address
- 15. B. Table of Contents Things to remember: It must match with internal arrangement of the document
- 16. C. Executive summary Things to remember: Prepared in the end attached in the beginning Must be originally written Review at least three times and test Must be paragraphed Length 2 to 3 pages
- 17. D. General Business Description a. Introduction & rationale of opportunity b. History of the venture if existing otherwise background of the entrepreneurial team c. Industry analysis Demand Supply
- 18. D. General Business Description Number of players Growth trends Stage of development Major threats and opportunities d. SWOT of the venture e. Legal status of the business f. Legal issues and requirements Location (Is it a strategic location?)
- 19. E. Management Plan 1.Introduction of the entrepreneurial team a. Name and address b. Qualification c. Experience d. Current responsibilities & why 2. Hierarchy 3.Total number of jobs a. Job descriptions
- 20. E. Management Plan b. Job specifications 4.Human Resource Policies a. Hiring process b. Training & Development c. Evaluation and Reward System
- 21. F. Total Product & Service Plan Product Mix in detail
- 22. G. Marketing Plan 1.Analysis Phase a. Customer analysis b. Competitor analysis c. Supply chain analysis d. Sales forecasting
- 23. G. Marketing Plan 2. Action/Strategic phase a. Product Plan b. Pricing Plan c. Promotion Plan d. Placement Plan 3. Implementation & Control Phase
- 24. H. Operations & Production Plan 1.Input/Supply/Purchase Plan a. List of raw materials b. List of suppliers and reason of selection c. Supply schedule & payment plan d. Storage facilities required e. Transportation system
- 25. H. Operations & Production Plan 2. Production Plan a. Plant lay out b. Machines, tools and plant c. Capacity d. Facilities 3. Total quality management system 4. Out bound logistics plan
- 26. i. Financial Plan 1. How much finance is required? 2. Where to get finance from? 3. Utilization and recording of financial results?
- 27. J. Appendix Resumes of Entrepreneurs Legal documents Pictures Location map