Beruflich Dokumente
Kultur Dokumente
Dr.Vidya Hattangadi
Why make a business plan?
A business plan is a Road Map of a business. Regular
reviews of a business plan are a must for a business as it
guides the entrepreneur to take the right measures and
make the right strategies for his business.
Every business must have a business plan for it irrespective
of whether the business needs financial assistance or not.
Irrespective of the size of the business, it is important for an
entrepreneur to make a formal business plan because:
It helps the entrepreneur and his management to clarify,
focus and research their business.
Why make a business plan
It provides a considerable and logical framework within
which business can develop and pursue strategies over
years.
It serves as a basis of discussions with third parties such as
shareholders, agencies, banks, investors etc.
Offers benchmark against which actual performance can
be measured and reviewed after suitable intervals.
No two business plans can look alike, as no two businesses
are alike. Some issues can be relevant for some business
but need not be relevant for every business. Tailoring
contents into the business plan as per requirement is
therefore an art.
Business Plan Outline
Cover Sheet:
Name(s) of the owner(s), Name of
the business/venture, Address, Phone
Numbers, Fax Numbers, e-mail
address etc.
Statement of purpose
Statement of purpose: your business plan
should start with a simple statement of purpose.
The statement of purpose should be brief but
with clarity and logic. It should specify
The amount of loan required
The amount of money you are putting in
The loan period – for how many years you require the
loan amount for
The impact of the loan and the purpose it will have on
your business
The collateral that will be used to support the loan
Table of Contents:
Description of what the
business does:
Your business description is your corporate vision, which
should be the first point to be written in your business
plan. Your corporate vision should include a wholesome
picture of your strengths and how best you will make use
of them. The language has to be simple, understood by
everybody.
Source of funding
Application of funding
Capital equipment and furniture list
Projected balance sheet
Break-even analysis
Projected income statement for 1st year, 2nd year and 3rd year
Notes on explanation on the figures
Cash-flow projections for 1st year, 2nd year and 3rd year
Details by month for 1st year, 2nd year and 3rd year
Notes on explanation
Tax returns of all principals (you and your partners) for last three
years.
Personal financial statement (all banks have these forms)
Copy of proposed lease or purchase agreement for building space
Copy of licenses, patents, and other legal documents
Copy of the resumes of all principals
Copies of letters of intent from suppliers, etc.
Supporting Documents along with
the financial data:
Personal CV, personal financial
statement, credit reports, bank
statements, letters of references,
credit reports, letter of intent, lease
deeds, contracts, other legal
documents and any other document
of relevance.
The Market
The competition and feasibility study, describe here again your
product/service
Convenience: your business location should be convenient for you as well as your
customers.
Safety: find out whereabouts of the area. Is the area safe from communal violence,
crime, how is the law and order in the area, you have to look after the safety of both
your employees and customers.
Facilities: water supply, electrical supply and sanitation are very important for
running the business.
Zoning: Many cities have strict zoning requirements. Make sure that you are
operating your business in commercial zone. Make sure of the zone before you sign
the deal.
Management:
The management team of your business is
important for your business to prosper. You need
to form a team of like-minded people. The
management team shapes up the business. The
management team does the mentoring job for the
employees as well as it does the networking for
your business, gives direction from time to time, it
also helps to deal with the change management. It
gives a purpose to the business and helps in
persisting your goals and vision. Therefore picking
up the right people is your responsibility. While
mentioning about your management team you
need to mention the following points:
What is your business background
How will it help you in running the business
What management experience do you have? From where
did you acquire it
Is it helpful in a particular way in your business
What are your weak areas as far as this business is
concerned?
Are you going to appoint consultants/employees to
overcome those weaknesses
What are your educational qualifications (mentions both
formal and informal), which have bearing on your
managerial abilities or knowledge?
Personal Data: age, residential address, special abilities and
interests and reasons for going for business
Your physical strengths and weaknesses
What skills and qualities of your can make your business successful
Who is on your managerial team
How are they qualified to help you venture
What are their business backgrounds, their qualifications
What duties have you allotted to each one of them
Are these duties clearly defined
Who does what?
Reporting system: who reports to whom
Who will take the final decision
How do plan to pay the management?
What additional human resource you have arranged for the
business? (Accountant, Lawyer)
Itis important that these biographies are not
merely resumes that include the educational
backgrounds and previous job titles and
responsibilities of the team members. Rather,
biographies should highlight the most
relevant past positions that the individuals
have held and specific successes in each.
These successes could include launching and
growing new businesses or managing
divisions of established companies
Staff:
is defined is filling, and keeping vacancies
filled. This includes identifying work-force
requirement, inventorying people available,
selecting, recruiting, placing, and training,
promoting, appraising and planning their
careers. Staffing must be closely linked to
the structure of your business. The following
points need to be described in your business
plan:
Staff
What are your present staffing needs
What are going to be your immediate future staffing needs
(after 3 and 5 years)
What skills must your employees possess
How many full-time and how many part-time vacancies you
have
What salary structure you want to offer
Are you aware of the employee befits rules and regulations
Are you going to provide any fringe benefits to your
employees
If yes, which ones
Have you calculated the cost of the fringe benefits
Are you going to utilize over time
Are you ready for the OT benefits to be paid
What about the training needs of your employees both in
operation as well as management?