BUSINESS PLAN

Creating a Business Plan

• An entrepreneur’s proposed
business venture.
• Its operational and financial
details.
• Its marketing opportunities and
strategy.
It serves two essential functions:
• Guiding the company by charting
its future course and defining its
strategy for following it.
• Attracting lenders and investors
who will provide needed capital.
 TYPES OF BUSINESSES
• Sole Proprietorship
• Partnership Firm
• Co-operatives
• Private Limited Company
• Restricts the rights of members to transfer its shares, if any;
• Prohibits any invitation to the public to subscribe for any shares or
debentures of the company;
• Does not invite or accept any deposits from persons other than its
members, directors or their relatives

• Public Limited Company

• Its shares are freely transferable;
• There is no ceiling on its membership;
• It can invite general public to subscribe to its shares.

•
 Choosing the product
• assessing the size and structure of the
market for the products
• determining the future demand pattern
for each of them
• comparing their competitive positions
in the market
• graphing the life cycle of each product.
• finding the self life of each product.
• The ease of availability of raw
materials, technology and manpower
 Choosing the Location of the
Industry
• the cost of gathering material is low.
• the cost of distributing the finished
product to the customers is
minimum.
• should also be able to meet the
environmental guidelines and other
regulations set by the Government .
•

•
•
 Regulatory Requirements &
Licencing
• The environmental regulatory requirements
covers every aspect of environment protection
like air, water, noise, forest conservation,
wildlife protection, etc. The Ministry of
Environment and Forests (MoEF)
• the Companies Act,1956, which regulates all the
affairs of a company. It contains provisions
relating to the formation of a company, powers
and responsibilities .
• Registrar of Companies (ROCs) appointed under
Section 609 of the Companies Act, vested with
the primary duty of registering companies
•

•
 Financial estimation
• The financial objectives of the
company
• Nature and size of the business
• The image and credit-worthiness of
the enterprise
• Growth and expansion plans
• Capital market trends
• Government regulations
•
 Raising fund by sole proprietor and
partnership
• Investment of own savings
• Raising loans from friends and
relatives
• Arranging advances from commercial
banks
• Borrowing from finance companies
•
 Companies can raise
funds by
• Issue of Shares
•Equity shares
•Preference shares

• Issue of Debentures
• Loans from Financial Institutions
•Industrial Finance Corporation of India
•Industrial Credit and Investment Corporation of India (IC

• Loans from Commercial Banks

•

•
Setting Up Infrastructure
• the availability of the basic amenities
like, water, power supply .
• Connected to the nearest transport
network i.e. rail, road or port.
• Telephone & internet connection.
• incentives like land and building tax
concessions
•
 Choosing the process
technology

• Indigenously developed
• Imported
• The level of skilled workers or complex
machines required by the process.
• The quantity of water and / or power required.
• Any special Pollution or Environmental
regulation is to be followed.
• The appropriateness of the technology to the
Indian environment and conditions.
•
Machinery and raw material
• National Small Industries Corporation (NS
provides machinery and
equipment to small industrial units
offering them long repayment
period with moderate rate of
interest
• The imports of raw materials are
regulated by the (Foreign Trade
Development
and Regulation) Act, 1992..
 Hiring human resource
• the availability of labour of different
skill levels.
• productivity and cost of labour.
• flexibility of labour.
• attitude and behaviour patterns of
labour.
• nature of trade unionism .
•
 What is Marketing?
•

• Marketing at its very core is…

•
•
The process through which Value
• is exchanged
•
 Marketing Plan
• Marketing plans typically include:
– Market research
– Product description
– Competition overview
– Pricing strategy
– Promotion strategy
– Distribution strategy
–
•

•
 Market research

M a rke t re se a rch ca n h e lp yo u …
–
•S e le ct o r d e ve lo p a p ro d u ct o r se rvice
th a t w illm e e t th a t cu sto m e r n e e d
•D e ve lo p p ro m o tio n a lm a te ria lth a t w ill
m a ke th e cu sto m e r a w a re
•U n d e rsta n d th e n e e d s o f yo u r cu sto m e r
•E n su re p ro d u ct o r se rvice d e live ry
 Promotion
• Media Relations
– “free advertising”
• Public Relations
– Community-oriented event & program
sponsorships, partnerships
• Internal and External Communications
– Newsletters, Electronic Media (e-mail)
– Relationship marketing
• Advertising
– Television, Radio, Print, Outdoor, Direct mail
•
 Product pricing
• Determining the Demand for the
Product
• Setting the Pricing Objective of
the Firm
• Estimating the Costs and Profits
• Determining the Competition for
the Product
• Considering the Governmental
Regulations
•
 Competition overview
• By market research data
•

• By assesing the product life cycle of

competitors
• By the strengths and weaknesses of
competitors
• By an assessment of how competitors
businesses are doing
• By a description of the unique features
of your product
• By a pricing strategy for and
comparison of yours and the
 Marketing strategy
• the four P's of Marketing:
• PRODUCT It helps define consumer
perceptions of products.
• PRICE It determines price of product based
on a number of factors including costs of
manufacturing
• PLACE Itdeterminesproduct placement
throughdistribution .
• PROMOTIONIts communicating the product
to the prospectivecustomers about its
specialities and qualities
•
 Distribution strategy
C h a n n e ls o f d istrib u tio n
S u m m a rize ch a n n e ls o f d istrib u tio n –
• re ta ile r, w h o le sa le r e tc .
D• istrib u tio n b y ch a n n e l
S h o w p la n o f w h a t p e rce n t sh a re o f d istrib u tio n
• w ill b e co n trib u te d b y e a ch ch a n n e l.
•
•

•
•
•