business plan nuggets
TRANSCRIPT
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Entrepreneurship & Small Business Management (ESBM)-MSH-1109Tutor: Mayank Choubisa (Guest Faculty)Birla Institute of Technology (Mesra), Jaipur Campus
Getting StartedPreparing a Business Plan
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Lecture Outline
What to put in the business plan Getting started Government and non-Government support
for business
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The Business Plan
A sales tool To attract investors or new business partners
Strategic document and action plan Defines the company Sets out objectives Identifies priorities
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Content of the Plan Write for your audience Good presentation Ideas expressed clearly and concisely Avoid too many management/technical jargons Be realistic – not overly optimistic Executive summary should entice the reader Highlight the skills and talents of the team
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Preparation
Goals Route to market Finance Premises Legal format
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Legal Format
Sole trader Partnership Limited Company
Register with Companies House Off the shelf company
Franchise
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Essential Areas to Cover in the Business Plan
Executive summary The business concept Product or service The market and competition Management Business operations Financial projections Marketing strategy Bid for finance
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Executive Summary
Includes the key elements from the plan Should attract interest Maximum length: 2 pages (1000 words) Often written last
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The Business Concept
Introduce the nature of the business Include vision and mission statements
Delineates the focus of the business States the aims of the business
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The Product or Service
The product or service What makes it different? What value does it offer? How will it be delivered? What are the planned developments Protection by patent?
For existing businesses Current and planned products History of the business
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Market and Competition Define your market
Industry sector, geographic scope Market size
Focus on your target segments How large is each segment? What is your likely market share? What are the trends?
Outline the principal competitors Products/services Advantages/disadvantages compared to you
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Management Demonstrate qualities to turn the Plan into reality The entrepreneurial team
Education Business experience Key skills and talents
Other members of the management team Define responsibilities Recruitment Training
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Business Operations
Analyse the workforce in total numbers and by task/department
What premises does the business need? What production facilities are needed? What management information systems
are needed? Are there any regulatory standards which
must be met?
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Financial Information The funding request Financial statements ~ historical Forecasts
Profit and loss statements Cash flow Balance sheets for 3 to 5 years
Clearly state the assumptions behind the forecasts
What-if scenarios
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Marketing Strategy
How will you position your product/service in the marketplace?
Which markets are you going to serve now and where do you want to be in the future
Overview of the key aspects of the marketing mix
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Bid for Finance
What is the money for? How much will you be investing yourself? What amount do you need? When do you need it? How and when will you repay it? What security (if any) can you offer?
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Appendices
Detailed analyses should be in an appendix and not in the Plan
Items which can go in an appendix: SWOT analysis Market research results Financial data
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Getting Started
Business Start-up
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Start-up ~ how long will it take?
Delays Finding customers Finding suppliers and distributors Finding business premises Building work Recruitment Research and development Raising finance
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The Start-up Obstacle Course
Everything takes longer than planned Gaining market credibility Forecasts are rarely accurate Avoid profit margins being squeezed Supplier relationships Getting paid Managing people and building a team Fire-fighting
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Employing Staff
Employment law National minimum wage The Working Time Directive Fairness at Work Legislation
Ensure do not discriminate: race, sex, marital status or disability
Pay as You Earn and National Insurance Employer’s Liability Insurance
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Regulation Register for VAT (Refer Current Regulations) Employing staff
Business Link guide New Employer’s Starter Pack
Self employed: Inform Inland Rev (NI contributions): Class 2 + 4 NI
Limited Co: Set up PAYE scheme Inform local Inland Revenue office re Corp tax
Health and Safety May have to register with HSE or local authority
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Support Agencies
Business Links Banks Chambers of Commerce Small Business Federation Institute of Small Business Affairs Institute of Directors
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Websites nasbic.org http://business.gov.in www.cmie.com www.new-ventures.org/center/new-ventures-india www.ibef.org/industry www.bizTradeShows.com www.researchandmarkets.com www.statisticsofindia.com www.securities.com www.franchiseopportunities.com www.indianindustryprofiles.com http://msme.gov.in & http://www.laghu-udyog.com www.ediindia.org and many many more…….