DONE BY..

Vannamalar Karthikeyan
S.Md.Syed Abdul Hammid
R.Senthil Kumar
Selva sabareesh
J.Suresh Babhu
Ram kumar
 The real value of a business plan is not about
having the finished product in hand
 Value depends upon the research conducted
 The process of researching
 Application of knowledge in a systemic way
 The act of planning helps to get a clear idea
about the risks involved
 Helps to look at the ideas developed
critically
 Helps avoid any disastrous consequences
 Helps avoiding mistakes during the course of
the project
 Mission statement of the venture

 Company goals and objectives

 Business philosophy

 Description of the industry

 Company strength

 Core competency factors

 Board of directors
 Management advisory board
 Attorney
 Accountant
 Insurance agent
 Banker
 Consultant
 Mentors
 Executive summary
 Management and Organization
 General company description
 Products and Services
 Marketing Plan
 Operational Plan
 Personal Financial Statement
 Startup expenses and Capitalization
 Financial Plan
 Appendices
 Refining the Plan
A description about the market scenario is
presented in the product and services part of
the plan
 Important features about the market are
specified
 Benefits for the customers out of the project
is emphasized
 After sale service, sale mode (e-shopping,
outlets etc)
 Customer support, follow up, service
contracts, warranty policies
 And the refund policy for the product are
discussed in the market description part of
the business plan
A list of the major competitors
 Competition is further classified based on the
geographic location, customer group
 A study on the possibility of indirect
competitors in the market is done
 Description on the competency level of the
product with the products from other
competitors is discussed
 Identification of the target customers is
done

 Geographical locations and plans about

sales through channels (e.g.: dealers)

A detailed research on the end customer

and the middleman business is necessary
to enable stable reach to the customers
without any delay
Classification of the customer group is
essential based on:
 AGE
 GENDER
 LOCATION
 INCOME LEVEL
 SOCIAL CLASS
 OCCUPATION
 EDUCATION
 Consists of a 12month profit and loss
projection (mandatory)
 A four year profit and loss projection
(optional)
 A cash flow projection
 A projected balance sheet
 A break even calculation
A reasonable projection of the company’s
financial future is projected
 Financial plan provides a clear insight into
the inner financial working necessary
 Helps establishing clear financial policies to
be adopted within and also outside the
organization (e.g. credit on sales, credit on
purchase etc )
 It’sthe nucleus of the entire financial
Plan

 Helps in predicting the success of the

project in financial terms

 Sales projections can be estimated

through a thorough research conducted on
sales forecast
 Research usually done based on the present
scenario in the market

 Predicts cost of goods sold

 Expenses for production

 Profit acquired month by month

 Explains the profitability possible from the
project

 Gives a glimpse on the possibilities of loss

 Projections
are usually done based on the
major assumptions of the company income
and expenses
 Duration of credit is decided

 Necessity for sale on credit is emphasized

 Terms for offering credit

 Credit limit
 Itis a fundamental financial report that any
business needs for reporting and for financial
management
 Startup Expenses and Capitalization are used
as a guide to preparing a balance sheet as of
a opening day
 A estimation of the financial position of the
company at the end of the first year is
predicted
 Production levels
 Anticipated level of direct and indirect costs
(overheads)
 Prices per product line
 Gross profit margin, overall and for each
product
 Production capacity limits
 Explains the daily operations of the
business

 Location of the manufacturing plant

 Labour

 Processes

 Surrounding environment
 Production techniques and Costs

 Quality control

 Customer service

 Inventory control

 Product developement
 The physical requirements for production are
discussed
 Amount of space
 Type of building
 Zoning
 Power and other utilities
 Access to convenient transportation
 Licensing and Bonding requirement
 Permits
 Health, workplace and environmental
regulations
 Special regulations covering the industry
(e.g. power plants)
 Building code requirements
 Insurance coverage
 Trademark, copyrights or patents
 Number of Employees
 Type of labor required
 Bringing in skilled employees if needed
 Quality of existing staff
 Training methods and Requirements
 Requirement of contract workers
 Effective marketing determines the success
of the venture

 It
is very dangerous to enter into any given
market without any prior knowledge

A thorough market research is conducted and

strategies are decided accordingly
 Field work can be conducted

 Censusdata, consumer demand for the

product are taken into consideration

A professional market research can be used

for assistance to attain expert knowledge
about the market
 Total size of the market
 Percent share expected in the market
 Current demand
 Trends in the market
 Growth potential
 Opportunity for expanding the market share
in the future
 Promotion of the product

 Advertising the product

 Media selection for advertising

 Determining the image projection of the

product to the customers(e.g. economical
)

 Promotional budget
 Methods for setting prices are explained

 Comparison of the price with other products

in the market is done

A competitive analysis of the pricing strategy

is done