CREATIVITY AND ENTREPRENEURIAL PLAN

A plan for your business

Do it for yourself not just for investors

UNIT 2

Slides By
Supreet Juneja Wahee
Learning Objectives
The Business plan as an entrepreneurial tool,

Contents of a business plan,

Idea generation, Screening and Project Identification, Creative

Performance,
Feasibility Analysis: Economic Marketing, Financial and
Technical :Project Planning;
Evaluation, Monitoring and Control segmentation,

Creative Problem Solving :Heuristics, Brainstorming, Synectics,

Value Analysis, Innovation.
Project Feasibility and Project Appraisal

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 B-PLAN

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BUSINESS PLAN

A Business Plan is a Selling Document that

conveys the excitement and promise of your
business to any potential backers and
stakeholders

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BUSINESS PLAN
A written document that outlines the future activity for
an existing or proposed business venture.
Is the formal written expression of the entrepreneurial
vision, describing the strategy and operations of the
proposed venture.
A business plan is a document that brings together the
key elements of a business that include details about
the products and services, the cost, sales and
expected profits.
Blue Print
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 Purpose of a Business plan
It forces the person preparing the plan to look at the
business in an objective and critical manner.
It helps to focus ideas and serves as a feasibility study of
the business's chances for success and growth.
The finished report serves as an operational tool to define
the company's present status and future possibilities.
It can help you manage the business and prepare you for
success.
It defines your purpose, your competition, your
management and personnel. The process of constructing a
business plan can be a strong reality check.
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What makes a successful business
plan?

Presents a well thought out idea

Contains clear and concise writing
Has a logical structure
Illustrates managements ability to make the
business a success
Shows profitability

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 BUSINESS PLAN FUNCTIONS

A document showing the information

A starting point
and figures are needed in decision
for starting up a
making
business or a project

An initial outline of the evaluation of A zone of operations necessary for

the company is adjusted in order to
BUSINESS coordinating all the activities
achieve the objectives PLAN
IS:

A tool attracting, informing and A tool for negotiations with

motivating employees suppliers

Curriculum vitae of the

Company,
vital in relations with donors

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 Business Plan Components

Executive Summary
Company Summary
Products or Services
Market Analysis
Strategy and Implementation
Summary
Management Summary
Financial Plan

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 Format of Business Plan
TITLE PAGE
Name of the business
Owner /Owners
Contact Details (Addresses, Phone & email etc)
EXECUTIVE SUMARY(A persuasive summary that will entice a
reader to take the plan seriously and read on.)

Business ideas & Goals : Over view of business

Marketing : Products & services being sold?
Operations : Business Location & staf
Finances : Breakeven period, finance required.

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 Format of Business Plan
BACKGROUND
Mission and vision Statement
Company history ( existing business)
Business Goals (Short term/Long term)
Type of Business (-Manufacturing/ Services/Trading
Background of entrepreneur
Forms of business ( partnership, proprietorship , pvt ltd, public
ltd)

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 Format of Business Plan
MARKETING
Market Research
Market Analysis (Industry / Seasonality /Competitors /SWOT )
Marketing Plan (Target market/ distribution channel /pricing)
A-Product ( good or service), segmentation and targeting , packaging,
features, benefits , 5-Production plan ,Manufacturing process,
outsourcing , physical plant , machinery and equipment , raw
materials, warehousing, technology used , know how ,no of products to
be produced per year/month/day etc
B-Price ( penetration strategy or price skimming)
C-Place ( distribution ( M-W-R-C, M-W-A-R-C, M-C) , website , own
outlet, franchise etc
D-Promotion (Pricing, distribution channel , promotion , research ,
patent, lead generation (just dial, google adword, facebook, etc)
Evaluation of Marketing

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 Format of Business Plan

OPERATIONS & PRODUCTION

Legal & Licensing requirements
Management details
Organization structure & staffing (no of employees needed,
qualification ,experience, skills set etc. HR policy( promotion,
dress code, ), hierarchy, documentation span of control, flow
of communication , dispute settlement , admin ,
Process/System set up , training etc
Insurance & Security needs

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 Format of Business Plan

FINANCIAL PROJECTIONS
Income & Expenses
Financial forecasts
funds raising (Equity+ debt )i.e Venture capitalist , bank loan,
listing in stock market( IPO) etc
-Budget , cash flow projections, working capital needed,
--Break even analysis
-cost estimation per unit (fixed and variable)
-Expenses details ( rent, machinery, salary, electricity ,
maintenance etc)
IMPLEMENTATION TIME TABLE
Time needed to set up & run the business

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Business Supporting Documents

Include any documents that lend support to

statements made in the body of your
company's business plan.
Resumes
Credit information
Quotes or Estimates
Letters of Intent from prospective customers
Letters of Support from credible people who know you
Leases or Buy/Sell Agreements
Legal Documents relevant to the business

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An elevator pitch is a short pitch that can be used to quickly and simply define a person or product. In other words a quick
introduction that can lead to sales.

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 ELEVATOR PITCH

In which it will focus on the most significant points of the business.

Elevator Pitch of the business plan will need to provide the following
information:
to provide a clear, concise and relevant business
to highlight the unique advantages in achieving success
demonstrating why business work-concept to demonstrate simple and clear
management objectives
to be written in a positive tone and confident
to be concise so they can be read in less than 1 minutes
can be seen as a mini plan business within the business plan framework.

Elevator Pitch of the business plan can be completed with a personal touch,
with a message from management, personal assessment of your business.

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 Funding objective
How much do you
need
What do you need
the money for i.e.
what will you
achieve with this
money, when do
you see profitability

Also mention any fund

raising history, if any

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Matrices
being
tracked

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Tips for a successful Business
plan

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 B-plan process

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 Analyse the external
environment

Analyse the internal

environment

Define the business

Every planning process and mission
goes through a series of
steps which are as follow;
Set corporate objectives

Formulate strategies

Make tactical plans

Build in procedures for

monitoring and
controlling

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 BUSINESS PLAN DRIVERS
Clear Vision of Purpose The direction the business venture wants to
achieve.
A long term view

Satisfy Real Customers Needs & Exceptional customer service that results in
Serve Real Customers
the loyalty of customers, repeat purchases by
them and greater customer retention.

Differentiate from Competitors Positioning unique differentiating factors.

Continuously making improvements to sustain a
leadership position.

Resource Focus, Organization & Resources should be optimally utilized to

Commitment to satisfy Customer
ensure that maximum possible value gets added to
needs
MBA IV :Entrepreneurship Development satisfy customer
Supreet needs.
Juneja Wahee Slide 24
What Investors Look For

How does the team think?

How detail oriented is the team?
How big is this market?
Is there sustainable competitive advantage?
Whats the growth plan?
What does the technology roadmap look like, short
term or long term play

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Financial Projections

Build 5 years
Detail near years, extrapolate out years
Build from single unit economics
Document assumptions
Validate with market comparables

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10 Must Answer Questions
How large is your addressable market?

How fast is the market growing?

Whos make up your management team?

Whats your secret sauce?

What are the barriers to entry/competitive advantage?

What do your 5 year financials look like?

Whats your path to profitability?

Why is this a company versus a product/service?

Whos your competition and how do you beat them?

Why cant Microsoft or Google do this? (or name any big, established company)

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Creating Your Companys Strategy

Building a strategy is harder work than building your

product
Think about
What do you want your business to be when it grows up
Looking back from 5 years in future
Perspectives of all stakeholders
Anything that could go wrong

Hope is not a strategy

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Competitive Analysis

You always have competitors

Dig deep, be detailed, be honest

Compare features and benefits

Technology comparison
Whole product offering (pricing, support, etc.)

Channels, funding, customers

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Sustainable Competitive Advantage

Create barriers to entry

Continually add value for your customers (and your

investors)
Anticipate competition and make plans for dealing with it
Better widget, price erosion, market share, different business
model..

Avoid the trap of believing that your main competitor is

your exit strategy
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Business Plan Benefits

1. Puts a business idea to the test; it fine-tunes it up-

front.
2. Turns a good idea into a viable business or a working
enterprise.
3. Helps you come up with creative ways to make your
business work.
4. Shows you what you are up against with competition.
5. Creates a detailed action plan to keep a competitive
advantage.
6. Specifies what you need to start the business saves
time and money.
7. No nonsense list of equipment needs.

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Business Plan Benefits

8. Provides a timetable when you need to finish

the items on your to-do list.
9. Helps you get the funding you need.
10. Tells the world who you are.

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