1. Vishnu Parmar, IBA, University of Sindh, Jamshoro
The Business Plan
Vishnu Parmar, IBA,
University of Sindh, Jamshoro

2. What is Business Plan?
Business Plan is a written document describing all relevant internal and external elements and strategies for starting a new venture

3. Who should write the Plan?
Business should be prepared by the Entrepreneur with the help of Lawyers, Accountants, marketing consultants, and Engineers.

4. Who reads the Business Plan?
Business Plan may be read by Employees, Investors, Bankers, Venture Capitalists, Suppliers, Customers, Advisors, and Consultants
Three perspectives must be consider:
Entrepreneur
Marketing (from customers perspective)
Investors

5. How do Potential Lenders and Investors Evaluate the Plan?
Lenders focus on 4 Cs
Character
Cash flow
Collateral
Contribution Equity

6. Information Needs
Quick feasibility Study to see the possible barriers

7. Market Information Define the Market (Buyers and Market Segmentation)
Upside-down pyramid Approach
General Environment and Demographic Trend
National Industry Trend
Local Environment and Demographic Trend
Local Industry Trend
Local Competition (Strength & Weaknesses)
Market Positioning
Market Objectives

8. Operations Information Needs
Location
Manufacturing Operations
Raw Materials
Equipment
Labor Skills
Space
Overhead

9. Financial Needs Prepare Budget Expected Income and Expenditures
Bench Marks or Financial Ratios

10. Outline of Business Plan
1. Introductory Page
2. Executive Summary
3. Industry Analysis
4. Description of Venture
5. Production Plan
6. Operational Plan
7. Marketing Plan
8. Organizational Plan

11. Outline of Business Plan
9. Organizational Plan
10. Assessment of Risk
11. Financial Plan
12. Appendix

12. Why Some Business Plans Fails?
Goals set by the entrepreneurs are unreasonable
Goals are not measurable
The entrepreneur has not made total commitment to the business or to the family
The entrepreneur has no experience in the planned business

13. Why Some Business Plans Fails?
The entrepreneur has no sense of potential threats or weaknesses to the business
No customer need was established for the proposed product or services