Orientation on Business Plan Development

8/9/2019 Orientation on Business Plan Development

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IntroductionIntroduction

ThisThis isis anan excitingexciting timetime inin PakistanPakistan toto becomebecome ananentrepreneur,entrepreneur, GovtGovt.. andand industryindustry nownow recognizerecognize thetheimportantimportant rolerole ofof youngyoung firmsfirms inin providingproviding fuelfuel toto thethenationalnational economyeconomy..

ToTo facilitatefacilitate thisthis growinggrowing trendtrend ofof entrepreneurshipentrepreneurshipIDOIDO withwith thethe helphelp ofof BritishBritish HighHigh CommissionCommission hashaslaunchedlaunched aa projectproject onon EconomicEconomic EmpowermentEmpowerment forforPeacePeace andand Development,Development, andand EconomicEconomic

EmpowermentEmpowerment CenterCenter hashas beenbeen EstablishedEstablished inin QuettaQuetta..


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Objective of EECObjective of EEC

TheThe mainmain ObjectivesObjectives ofof EECEEC areare asas underunder::

ToTo facilitatefacilitate jobjob seekersseekers toto getget employmentemployment..

ToTo provideprovide guidanceguidance toto EntrepreneursEntrepreneurs andand developdeveloplinkageslinkages withwith MicroMicro--FinancingFinancing InstitutionsInstitutions forforavailingavailing loansloans..


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What is Entrepreneur?What is Entrepreneur?

A person who organizes, operates, and assumes theA person who organizes, operates, and assumes therisk for a business venture.risk for a business venture.


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What is Entrepreneurship?What is Entrepreneurship?

EntrepreneurshipEntrepreneurship is the practice of startingis the practice of starting

new organizations or revitalizing maturenew organizations or revitalizing mature

organizations, particularly new businessesorganizations, particularly new businessesgenerally in response to identified opportunities.generally in response to identified opportunities.


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Why to be an Entrepreneur?Why to be an Entrepreneur?

Self EmploymentSelf Employment

Job UncertaintyJob Uncertainty

High UnemploymentHigh Unemployment CompetitionCompetition


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Business PlanBusiness Plan

BusinessBusiness PlanPlan isis aa formalformal statementstatement ofof aa setset ofof

businessbusiness goals,goals, thethe reasonsreasons whywhy theythey areare believedbelieved

attainable,attainable, andand th

eth

e planplan forfor reach

ingreach

ing th

eseth

ese goalsgoals..ItIt maymay alsoalso containcontain backgroundbackground informationinformationaboutabout thethe organizationorganization oror teamteam attemptingattempting toto

reachreach thosethose goalsgoals..


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Why to write a Business PlanWhy to write a Business Plan

Writing a business plan will help you inWriting a business plan will help you in

answering the following questions:answering the following questions:

Who are you?Who are you?What are you going to do?What are you going to do?

Where are you going?Where are you going?

How are you going to get there?How are you going to get there?

A personal resume outlining theeducation and experience allowingyou to manage and start a particularbusiness.

A Description of your businessconcept, Product or Service youwould be providing, market you willserve and investment needed.

The Short and Long Term Goals youhave set for your Business.The strategies that will allow you tomeet your Financial, Competition,Management, CommunicationResponsibilities Etc.


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How to Write a Business PlanHow to Write a Business Plan

A Business Plan should Include the following:A Business Plan should Include the following: Title PageTitle Page

Table ofContentsTable ofContents

Mission StatementMission Statement

ExecutiveSummaryExecutive Summary IndustryStatusIndustryStatus

Target market/Customer BaseTarget market/Customer Base

Marketing PlanMarketing Plan

Production and Operation PlanProduction and Operation Plan

Management and Human Resource PlanManagement and Human Resource Plan Financial PlanFinancial Plan

AnnexureAnnexure


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Title PageTitle Page

This page should include a brief introductionThis page should include a brief introduction

about:about:

Business Name,Address, telephone, email etcBusiness Name,Address, telephone, email etc Name of Owner (S)Name of Owner (S)

Type of BusinessType of Business


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Table of ContentsTable of Contents

IncludesIncludes listlist ofof allall sectionssections inin aa businessbusiness planplan

withwith appropriateappropriate pagepage numbers,numbers, Graphs,Graphs,Diagrams,Diagrams, andand otherother visual visual representationrepresentation

shouldshould alsoalso bebe clearlyclearly identified,identified, exhibitsexhibits shouldshouldalsoalso bebe mentionedmentioned clearlyclearly soso referringreferring themthem cancan

bebe easyeasy forfor thethe readerreader..


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Mission StatementMission Statement

TheThe missionmission statementstatement shouldshould describedescribe whywhy youryour

companycompany existsexists inin marketmarket placeplace andand wouldwouldmostlymostly includeinclude::

DescriptionDescription ofofCompanyCompany PurposePurpose

IdentificationIdentification ofof thosethose ServedServed


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Executive SummaryExecutive Summary

ExecutiveExecutive summarysummary isis thethe contentcontent ofof youryour

businessbusiness planplan whichwhich allowsallows youryour strategicstrategicpartners,partners, investorsinvestors oror lendinglending agenciesagencies toto quicklyquickly

graspgrasp youryour conceptconcept andand businessbusiness direction,direction, sosowhilewhile readingreading thethe pagespages theytheyhavehave thethe clearclear ideaidea

ofof youryour intentionsintentions..


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ContCont

Executive Summary should include the following:Executive Summary should include the following: Brief Description of the IndustryBrief Description of the Industry

Purpose of the planPurpose of the plan

Goals of the businessGoals of the business Description of the Product and serviceDescription of the Product and service

CustomersCustomers

ManagementTeam ExperienceManagementTeam Experience

Amount RequiredAmount Required Other Sources of FundsOther Sources of Funds

Method of RepaymentMethod of Repayment


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Industry StatusIndustry Status

ThisThis partpart ofof thethe businessbusiness planplan discussesdiscusses thethe businessbusinessenvironmentenvironment inin whichwhich youryour companycompany willwill bebe operating,operating,entrepreneursentrepreneurs mustmust glossgloss overover thisthis sectionsection asas theythey areareexternalexternal andand uncontrollable,uncontrollable, andand bothboth positivepositive andand

negativenegative factorsfactors shouldshould bebe consideredconsidered includingincluding thethefollowingfollowing:: National/RegionalNational/Regional EconomicEconomic growthgrowth oror declinedecline

IndustryIndustry outlookoutlook ProjectedProjected OpportunitiesOpportunities RegulatoryRegulatory environmentenvironment TechnologicalTechnological InfluencesInfluences


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Target Market/ Consumer BaseTarget Market/ Consumer Base

ThisThis sectionsection ofof thethe businessbusiness planplan willwill describedescribe

thethe mostmost likelylikely customerscustomers forfor youryour businessbusiness:: whowhoareare they?they? WhereWhere areare they?they? whywhy andand whenwhen willwill

theythey buybuy youryour productproduct oror service?service?

AnAn errorerror inin determinationdetermination ofof youryour targettarget marketmarket

will will notnot onlyonly adverselyadversely effecteffect butbut will will alsoalso

increaseincrease advertisingadvertising andand promotionpromotion expenseexpense..


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ContCont

WhileWhile doingdoing aa researchresearch onon marketmarket needsneeds

followingfollowing questionsquestions needneed toto bebe answeredanswered::

CharacteristicsCharacteristics ofof thethe targettarget marketmarketSizeSize ofof thethe market/Expectedmarket/Expected marketmarket shareshare

MarketMarket segmentationsegmentation

CustomersCustomers buyingbuying habitshabits (seasonality,(seasonality, quantityquantity andand

averageaverage expenditure)expenditure)


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Marketing PlanMarketing Plan

TheThe marketingmarketing planplan describesdescribes allall thethe sellingselling activities,activities,thisthis planplan describesdescribes thethe annualannual salessales goals,goals, competitorscompetitorsproduct,product, servicesservices andand priceprice..

TheThe planplan shouldshould includeinclude completecomplete descriptiondescription ofof thetheproductproduct whichwhich areare ofof customercustomer choicechoice ..ii..ee.. name,name, colorcoloretcetc..

TheThe marketingmarketing planplan shouldshould includeinclude thethe followingsfollowings::

SalesSales GoalsGoals

DescriptionDescription ofof allall productsproducts andand servicesservices


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ContCont

Direct and indirect competitionDirect and indirect competition

Pricing ObjectivesPricing Objectives

LocationLocation

PromotionActivitiesPromotionActivities

PackagingPackaging

Customer service policyCustomer service policy

Sales training, management and methodsSales training, management and methods

Growth strategiesGrowth strategies


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Production and Operation PlanProduction and Operation Plan

PP && OO planplan shouldshould bebe assessedassessed veryvery carefully,carefully,failingfailing itit maymay causecause toto underestimateunderestimate startstart ups,ups,maintenancemaintenance andand growthgrowth expensesexpenses..

InIn thisthis sectionsection entrepreneurentrepreneur shouldshould givegive aa briefbriefofof income,income, numbernumber ofof employeesemployees oror productproductexpansionexpansion..

PP && OO PlanPlan shouldshould includeinclude thethe followingfollowing:: facilityfacility

EquipmentEquipment


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ContCont

Production process and costProduction process and cost

SupplierSupplier

Credit termsCredit terms

Transportation and shippingTransportation and shipping

Research and DevelopmentResearch and Development


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Management and HRPlanManagement and HRPlan

PeoplePeople forfor anyany businessbusiness areare asas importantimportant asasexpensiveexpensive resources,resources, beforebefore goinggoing inin toto anyanybusinessbusiness entrepreneurentrepreneur shouldshould assesasses thethe needsneeds forfor

growinggrowing andand whatwhat expertiseexpertise wouldwould bebe requirerequire.. TheThe salariessalaries ofof staffstaff andand expenseexpense ofof recruitment,recruitment,

selection,selection, trainingstrainings andand etcetc

ManagementManagement andand HRHR planplan shouldshould includeinclude:: KeyKeyManagersManagers

PersonalPersonal


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ContCont

Organizational ChartOrganizational Chart

List of Board MembersList of Board Members

ProfessionalAssistanceProfessionalAssistance


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Financial PlanFinancial Plan

FinancialFinancial PlanPlan isis importantimportant ifif entrepreneurentrepreneur wantswantstoto attractattract investors,investors, lenderslenders oror financialfinancialinstitutioninstitution toto helphelp inin startingstarting andand growinggrowing ofof anyany

project,project, financialfinancial plansplans helphelp youyou backback youryour factsfactsinin figuresfigures andand youryour venturesventures successsuccess..

FinancialFinancial planplan shouldshould includeinclude thethe followingfollowing::

StartStart UpUp costcostMonthlyMonthly ExpensesExpenses

SourcesSources ofof youryour fundsfunds


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ContCont

Three Years Projected Balance SheetsThree Years Projected Balance Sheets

Projected Cash FlowsProjected Cash Flows

Profit And Loss Forecast Or StatementProfit And Loss Forecast Or Statement Break Even AnalysisBreak Even Analysis

Net Present ValueNet Present Value

Internal Rate of ReturnInternal Rate of Return

Assumptions Used In Preparation Of FinancialAssumptions Used In Preparation Of FinancialProjectionsProjections


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AnnexureAnnexure

Following should be attached in this section:Following should be attached in this section:

Managers ResumeManagers Resume

AdvertisementAdvertisement

ContractsContracts

Letters of supportLetters of support

Pictures of Product or ServicePictures of Product or Service

Marketing ResearchMarketing Research

PatentsPatents

Quotations or estimates for facility or equipment purchasedQuotations or estimates for facility or equipment purchased

Documents

Orientation on Business Plan Development