BUSINESS PLAN
Defining the Business plan
Scope and value of the Business plan
Writing the Business plan
The Marketing plan
Marketing research for a new venture
Characteristics of a Marketing plan
Steps in preparing a marketing plan
Planning is the process that never ends for a
business.
It is extremely important in the early stages
of any new venture when the entrepreneur
will need to prepare a preliminary business
plan.
As the venture grows up to mature business,
planning will continue
Plan may be short term or long term,
strategic or operational.
Written summary of various elements involved in
starting a new enterprise of how business will
organize its resources to meet its goal and how it
will measure its progress.
A business plan is a document that describes a
new business, its products or services, how it will
earn money, leadership and staffing, financing,
operations model, and other details that are
essential to both operation and success.
It is the integration of functional plans such as
Marketing
Finance
Manufacturing
Sales
Human Resource
Definition
Document that can convince the reader that the
business can produce enough revenue to make a
satisfactory profit and therefore attractive as an
investment opportunity.
The business plan should be prepared by the
entrepreneur
The entrepreneur may consult with many
other sources in its preparation, such as
Lawyers
Accountants
Marketing consultants and Engineers.
Self
Investor/Venture Capitalist
Debt
Equity
Key Employees
Significant Others or stakeholders (Suppliers,
Bankers….)
The business plan may be read by
Employees
Investor, venture capitalist
Bankers, Suppliers
Customers, advisors and consultants
Entrepreneur
Thereare three prospective that should be
considered in preparing the plan:
Prospective of Entrepreneur
Marketing prospective
Investor’s prospective
The business plan is valuable to the
entrepreneur, potential investors or even
new personnel, who are trying to familiarize
themselves with the venture. Its goal and
objectives are:
It helps determine the viability of the venture in
the designated Market.
It provides guidance to the entrepreneur in
organizing his or her planning activities.
It servers as an important tool in helping to
obtain financing.
Four C’s of Credit Another
Characters Marketable
Cash Flows Payback Period
Collateral Risk
Contribution of Equity Feasibility etc.
It is often necessary for an entrepreneur to
orally present the business plan before an
audience of potential investors.
In this typical forum, entrepreneur is
expected to provide the short presentation
of the business plan.
Beforecommitting time and energy to
preparing a business plan
The entrepreneur should do a quick feasibility
study of the business concept
Theinformation obtainable from many
sources should focus on
Marketing ( Segmenting, Targeting and Positioning)
Finance ( list of all possible expenditure, demand
forecast, revenue etc)
Production (location, manufacturing operations, raw
materials, equipment, labor skills, space, overhead)
Internet can be a valuable resources
Introductory page
Name and address of Business
Nature of Business
Statement of Financing Need
Statement of Confidentiality of report.
Executive Summary
A page or two summarizing the complete
business plan
What is the business concept or model?
How is business concept or model is unique?
Who are the individuals starting the business?
How will they make money and how much?
Environment and industry Analysis
Future outlook and trends
Analysis of competitors
Industry and market forecasts
Description of Venture
Product(s)
Service(s)
Size of Business
Office equipment and Personnel
Background of Entrepreneurs
Production Plan
Manufacturing Process
Physical Plant
Machinery and Equipment
List of Suppliers of raw materials.
Operational Plan
Description of Company’s operation.
Flow of order for goods/ services.
Technology utilization
Marketing Plan Organizational Plan
Pricing Form of ownership
Distribution Identification of
Promotion Partners or
Product forecast shareholders
controls Authority of principals
Management- team
background
Roles and responsibility
of member of the
organization
Assessment of Risk
Evaluate weakness of the business
New Technologies
Contingencies Plan
Financial Plan
Pro forma income statement
Cash flow projection
Pro forma balance sheet
Break even analysis
Source and application of funds
IRR and NPV Projections.
Budget
Appendix (contents backup materials)
Letters
Market research data
Leases or contracts
Price list from suppliers
The business plan is designed to guide the
entrepreneur through the first year of
operations.
Implementation of strategy contains
Control points to ascertain progress and
To initiate contingency plan if necessary.
Entrepreneur should check
Profit and loss statement
Cash flow projections
Information on inventory, production, quality,
sales, collection of accounts receivable and
disbursement for the previous months.
Inventory Control
Production Control
Quality Control
Sales Control
Disbursements
The most effective business plan can be out
of date if condition changes.
If the changes are likely to affect the
business plan, the entrepreneur should
determine what revisions are needed.
In this matter, the entrepreneur can maintain
reasonable targets and goals and keep the
new venture on a course that will increase
the probability of success.
Marketing deals with identifying & meeting
human and social needs.
Marketing is “an organizational function and
a set of processes for creating,
communicating & delivering value for
customers & for managing relationships in
the ways that benefit the organization and
its stakeholders.
Marketing plan is the
written statement of
marketing objectives,
strategies and to be
followed in business plan
Marketing research involves the gathering of
data in order to determine such information
as
Who will buy the product or services?
What is the size of potential market?
What price should be charged?
What is the most appropriate distribution
channel?
What is the most effective promotion strategy to
inform and reach potential customers?
Marketing research can be done with
following 4 steps:
1. Defining the Purpose or objectives
2. Gathering data from secondary source
3. Gathering information from primary source
4. Analyzing and interpreting the result
Some important characteristics that must be
incorporated in an effective marketing plan are
as follows:
It should provide a strategy for accomplishing the
company mission or goal.
Should be based on facts and valid assumptions.
Should provide for continuity so that each annual
marketing plan be build on it, successfully meeting
longer term goals and objectives.
Should be simple and short.
Success of plan may depend on its flexibility.
Changes, if necessary can be incorporated in the
plan.
Should specify performance criteria that will be
monitored and controlled.
The steps required to prepare marketing plan can be
explained as:
1. Defining the business Situation
2. Defining the Target Market/ Opportunities and Threats
3. Considering Strengths and Weaknesses
4. Establishing Goals and Objectives
5. Defining Marketing Strategy and Action Program
1. Product or services
2. Pricing
3. Distribution
4. Promotion
6. Budgeting the marketing strategies
7. Implementation of the Market Plan
8. Monitoring Progress of Marketing Actions
9. Contingency Planning
