Orientation on Business Plan Development
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Transcript of 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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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
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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