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Madhukar Shukla

Developing a Business Plan

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Madhukar Shukla

Agenda

Understanding Entrepreneurship What does an entrepreneur do?

How do entrepreneurs plan/ think?

On Developing a Business Plan

Why do you need a business plan? Key tenets of developing a plan

Structure of a business plan

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Madhukar Shukla

What does an entrepreneur do?

shifts economic resources out of an area of loweryield/productivity into an area of higher productivity andgreater yield.

identifies an under-served market and designs &implements a scalable strategy to meet the needs of thesegment.

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How do Entrepreneurs Plan/ Think

Two ways of Reasoning Causal Reasoning

Effectual Reasoning

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How managers think causal reasoning

Rationally: select/ align the means/resources to achieve thepredetermined goal

Goal

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How entrepreneurs th ink effectual reasoning

Imagining/ crafting possible futures through given means/resources

R1 R2

R3

R4 R5

Who I amWhat I know

Who I know

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Agenda

Understanding Entrepreneurship What does an entrepreneur do?

How do entrepreneurs plan/ think?

On Developing a Business Plan

Why do you need a business plan? Key tenets of developing a plan

Structure of a business plan

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Key tenets o f a Bus iness Plan

Business Plan is not just about whatyou want to do -but also about howand whenyou will do it

Make the plan bottom up not top down

Start by writing the Executive Summary first

What do you want to do? How will you do it?

How will you make it sustainable?

Plan for your start-up costs

Salaries, infrastructure, registration, etc.

Cashflow requirements

Pilot, etc.. Till first sales or funding

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Life-cycle of growth and investment/ funding

Time/ years

VentureFounded

Grant/SeedInvestment

InitialInvestment

PhilanthropicAngel Capital

GrowthCapital

Venture Capital/Private Equity/Project Funding

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NKC Study findings source of funding

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NKC Study findings self-financing

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Structure of a Bus iness Plan

What is your Value Proposal? What need are you trying to fulfill?

What makes you unique?

Who are your customers?

What is the Market Size?

What is your market segment?

What is the size of the market?

What is the scope for market penetration?

What are your challenges to scale?

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Structure of a Bus iness Plan

What is your Business and Financial Model

How is it scalable?

What are your dependencies?

What are the key risks?

What is your revenue model?

What is your Competitive Landscape?

Who are the major players in the industry/ segment?

How do you compare with them?

What is the existing demand for the products/ services

you aim to offer?

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Lastly

Quality of the entrepreneur / team is often more

important than the plan!!, e.g.,

Knowledge, skillset and passion of the entrepreneur/

team

Ability to build an organisation and run a business Depth of knowledge about the customer/ market and the

sector

Thanks!