Business Planning

"In preparing for battle I have always found

that plans are useless, but planning is
indispensable."
-Dwight Eisenhower

“Those who fail to plan, plan to fail.”

-George Hewell
 The B-Plan will...
• Discuss a particular market opportunity.

• Examine the markets that you will compete in, and

explain who your customers will be.

• Describe the products or services that your company will

provide.

• Your competition, and how you will defend against it.

• The operation that you will put in place in your company.

• The management team that will implement the plan.

• The size and profitability of your company.

Components of a Business Plan
• Executive Summary

• Company Overview

• Market Environment

• Marketing and Sales Strategy

• Operations

• Financial Plan
 Executive Summary

• The written version of the “one minute

pitch.”

• Many people who read your plan, will only

read your Executive Summary...

• ...and then they may read your financials.

• NOT an introduction, but a short version

of the whole plan.
 Company Overview
 Explanation of history, structure, and organization of
your company.

 Strategic direction
 Mission statement.
 Goals and objectives.
 Values and vision.

 People
 Relevant skills and expertise of management team.
 Directors.
 Relationships with experts in the field.

 Goals and potential of the business and milestones (if

any)

 Uniqueness of product or service

 Market Environment
 All factors of the market :

 Market structure

 Market trends

 Competition

 Opportunities/Threats

 Research and analysis

 Target market (customers) identified

 Market size and trends

 Competition

 Estimated market share

 Marketing and Sales Strategy

• Products or services offered.

• Follow-on products.

• Intellectual property or other defendable

positions.

• Marketing plan.
– Brand strategy.
– Distribution strategy.
– Product strategy.
– Pricing strategy.
– Promotion.
 Operations

• Practical details required to meet the plan.

• Facilities.

• Manufacturing or out-sourcing.

• Varies widely depending on type of business.

• Explain how the business will be managed on a day-to-day

basis.
– Discuss hiring and personnel procedures.
– Discuss insurance, lease or rent agreements, and issues
pertinent to your business.
– Account for the equipment necessary to produce your products
or services.
– Account for production and delivery of products and services.
 Organization Structure &
Management
• Key Personnel -- describe the qualifications and
responsibilities of management.  The quality of
management is often the key factor in obtaining debt or
equity funding. 

• Other Personnel

• Directors and Advisors

• Professional Advisors.

• Key Future Personnel

• Forecasted manpower
 Financial Plan

• Three key reports, in a five-year plan:

– Income statement.

– Balance sheet.

– Statement of cash flows.

 Critical Risks

• Describe the key risks facing the company,

including risks presented by:
– Cost Overruns
– Failure to Meet Production Deadlines
– Problems with Labour, Suppliers, or Distributors
– Sales Projections not Met
– Unforeseen Industry Trends
– Competition
– Unforeseen Economic, Social, or Political Developments
– Technological Developments
– Inadequate Capital
– Business Cycles
– Other Risks
 Conclusion

• Summary

• Time line for funding and future developments

 Appendices
• Photograph of Product or
Service
• Sales and Profitability
Objectives
• Market Surveys
• Production Flowchart
• Marketing Materials
• Advertisements
• Press Releases
• Historical Financial
Statements
• Table of Current Profit and
Loss Statement
• Projected Profit and Loss
Statement
• Cash flow Projections
• Balance Sheet
• Projected Balance Sheet
• Break-Even Statement
• Key Contracts
Some essential things to bear in mind
 Presentation of the Business
Plan

 Know the outline thoroughly

 Rehearse the presentation

 Be familiar with any equipment

 Business Plan Assessment

 India:
 Complete Evaluation of Each Component

 US:
 Idea and the founding and management team crucial
considerations
 Possible drawbacks in a
business plan
 No realistic goals

 Failure to anticipate roadblocks

 No commitment or dedication

 Lack of demonstrated experience (business or technical)

 No market niche
 Why do we need a Business
Plan?
 the entrepreneur develops and examines operating
strategies and expected results for outside evaluators.

 quantifies objectives, providing measurable

benchmarks for comparing forecasts with actual
results.

 provides the entrepreneur with a communication tool

for
 outside financial sources and
 an operational tool for guiding the venture towards
success.
 Don’t forget…
 Keep the plan respectably short

 Organize and package the plan appropriately

 Orient the plan towards the future

 Avoid exaggeration

 Highlight critical risks

 Don’t forget…

 Give evidence of an effective entrepreneurial

team

 Do not over diversify

 Identify the target market

 Plan should be written in the third person

 Attempt to capture the reader’s interest

Idea Presentation
 Ideas Presentation --Format

• Prepare more than one idea that you think

could be developed into good
opportunities.

• They can be ideas for new businesses, or a

new opportunity inside an existing
business.

• Be prepared to defend your ideas in front

of a group of professionals from different
 Format
• You must get your ideas across clearly and
concisely.
• Present your “best” idea first (if you have
more than one).
• For each idea: 5 slides, 5 minutes
• Bring sets of your slides for handouts
 Format
Some tips:
• Don’t waste time on long introductions.
• Be passionate, convincing, interesting.
• Tell a story.
Thank You