A Business Enterprise is an Economic Institution Engaged in the Production And

8/3/2019 A Business Enterprise is an Economic Institution Engaged in the Production And

1/6

A business enterprise is an economic institution engaged in the production and/or distribution of goods

and services in order to earn profits and acquire wealth. The scope of a business is very wide. It includes

a large number of activities which may be classified into two broad categories i.e. Industry and

Commerce. Production of goods is the domain of 'Industry' and distribution comes under 'Commerce'.

Every entrepreneur aims at starting a business and building it into a successful enterprise. The term

'entrepreneur' means to undertake and pursue opportunities and to fulfill needs and wants of people

through innovation. He/she innovates and combines resources in the form of men, materials and money

and brings them together to make the business venture profitable. He/she is prepared to take risk and

face challenges. Thus, innovation and risks are the two basic elements of a good entrepreneurship. The

whole process of starting a business begins with writing a business plan. A good business plan is the key

to setting up a successful business. Once a plan is prepared, the entrepreneur faces various challenges

while implementing the plan.

TheCommissionerates or Directorates of Industriesare the nodal agencies in different States which

assist and guide new entrepreneurs in starting up an industrial unit in the concerned State. They provide

an interface between industry and other agencies for industry inputs and enable the entrepreneur toget different industrial approvals and clearances from various departments at a single point-Single

Window. They sanction incentives to eligible industrial undertakings and create a transparent and

automatic system of allotment of scarce raw materials to industrial units. Hence, a new entrepreneur

must approach the concerned commissionerate while setting up a business firm.

Creating a Business Plan

Every new venture should have a business plan. A business plan is the formal written expression of the

entrepreneurial vision, describing the strategy and operations of the proposed venture. The business

plan also goes by other names, depending on its intended audience. Presented to a banker, it may be

called a "loan proposal." A venture capital group might call it the "venture plan" or "investment

prospectus."

The advantages of writing a business plan far outweigh the costs. The purpose of the plan is to enable

the top executives of the firm to think about their business in a comprehensive way, to communicate

their objectives to individuals who may have a stake in the firm's future, to have a basis for making

decisions, and to facilitate the planning process.

Entrepreneurs should undertake the task of preparing the business plan personally. Although outsiders -

consultants, accountants, and lawyers - should be tapped for their advice and expertise, the promoter or

the initial top management team should be responsible for the writing. Personally drafting the plan will

enable the entrepreneurs to think through all aspects of the proposed business and ensure that they are

familiar with all the details, for they will have to make decisions about the new venture and be

responsible for those decisions. Moreover, investors expect the founders to be involved in and
http://business.gov.in/outerwin.php?id=http://ssi.nic.in/msme_links_stategovt_sdi.htmhttp://business.gov.in/outerwin.php?id=http://ssi.nic.in/msme_links_stategovt_sdi.htmhttp://business.gov.in/outerwin.php?id=http://ssi.nic.in/msme_links_stategovt_sdi.htmhttp://business.gov.in/outerwin.php?id=http://ssi.nic.in/msme_links_stategovt_sdi.htm


2/6

knowledgeable about the proposed enterprise.

The Benefits of Business Planning

The business plan can personally benefit the entrepreneurial team. Founding a new business can be

enormously fulfilling and exhilarating, but it is also an anxiety-ridden and tense experience. Usually a

great deal of money is at stake, and the consequences of poor decisions can affect many people for a

long time. In developing and writing a business plan, the entrepreneurial team reduces these anxieties

and tensions by confronting them in advance. By projecting the risks of the new venture into the future,

the team comes to grips with potential negative outcomes and the possibility of failure. The knowledge

that comes from this experience can reduce the fear of being taken by surprise by problems that could

have been foreseen and provided for at the very outset.

Every Business Plan must have:

Cover Page

Table of Contents

Executive Summary

Development and Production

Resource Requirement

Format and Presentation

Writing and Editing

Summary

Cover Page

Every Business Plan should have a cover page, which includes:

The Company's name, address, telephone, fax, e-mail and website address, if any.

The name and designation of the contact person - who should be one of the top executives of theenterprise and one who is familiar with and was part of the team that formulated the business planand will be able to answer any queries relating to the business plan.
http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/


3/6

Names of organizations from where funding is being sought.

The Company's logo - every company being established should have a logo in place, which could bean image, design or picture representing the company's ideology pictographically.

Table of Contents

Once the cover page has been made, a formal table of contents must be written for easy navigation to the

rest of the plan, by numbering each section.

Executive Summary

The executive summary is the most important part of a business plan, especially to the investors. Most

investors do not go beyond the executive summary, as they have too many plans to read. So make sure

that your executive summary is able of conveying clearly and succinctly exactly what you want your

investors to read.

The summary should include:

Kind of Business - a brief description of the industry your firm is focusing on.

Profile of the company's management - listing the names of top executives and theirqualifications and industry experience.

Financial requirements - briefly state how much finance is required. Also make sure you indicatethe degree of flexibility you are willing to show in case the investor suggests any changes in your

plan. This will allow the investor to consider your plan with few changes rather than rejecting

your plan outright due to rigidity on your part.

Budget allocations - the financial section of the business plan should be able to explain how youwill be using the finance.

Objectives - The business plan should present in a well defined format the short term and long term
http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/


4/6

objectives of the new business venture.

The objectives can be broadly divided into quantitative and qualitative objectives.

Market Analysis - The business plan should be able to convince the investor that the entrepreneur

understands the prevailing competitive environment and is able to prove that his/her product/service is

a niche product or service with substantial prospects for growth and capable of attaining a competitive

position in the market.

Environmental Influences - Demonstrate your knowledge and competence by evaluating the impact of

the environmental influences such as political, economic, technological, socio-demographic and

ecological factors that affect your area of business.

Development and Production

Detail the stages of development and production of your product/service, spelling out how time and

money will be allocated at each stage.

Resource Requirement

Analyse the type of resources required at each stage of production such as financial, human, physical,

technological, etc.

Quality - Discuss the quality control measures to be put into place by your firm to ensure the quality of

the product/service.

Marketing - Once again underscore the market potential for your product by describing your product's

exclusivity, describe how it will exploit your competitors weaknesses.

Identify the target market which should be substantiated by a thorough market research.

Once the target market has been identified, focus on the communication strategy including advertising,

branding, packaging etc. Like always list the costs involved for each segment of marketing.

Sales Forecast - Sales forecast is primarily dependent on three factors - size of the market, fraction of

the market you will be able to capture as a result of your marketing strategy and the pricing strategy.

Financial Plans - A new venture must show projected profit and loss statements and cash flow

statements.

Human Resources - Make an organisation chart with details of key executives and profiles of individuals

likely to be hired.
http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/


5/6

Form of Business - Describe the legal form of your business - whether it is a sole proprietorship or a

partnership, public limited co. etc.

Critical Risks - As a legal and moral obligation, the entrepreneur must, in the business plan, envision

risks the investor would be undertaking in case he makes a choice to invest in your business. This will

protect you from civil and criminal liability.

Conclusion - Briefly once again point out the highlights and key features of your business plan.

Also mention the time schedules against each stage of your venture. Along with your business plan

make sure to support your document with flow charts, photographs, market surveys, sample brochures,

advertisements, tax returns, resumes of board members, letters of recommendations etc. All this should

form a part of appendixes.

Format and Presentation

Physical Appearance - The document should not look too ornate or too plain. The document should

have a neat business feel to it. It must look professional and not shabby. Ideally it should be a neatly

typed document which is spiral bound. The pages should be crisp with wide margins and easy to read

size and style of font. Graphs and photographs should be of high quality.

Writing and Editing

It is extremely important that the business plan is well written in crisp and easy to comprehend

language, is to the point and does not contain irrelevant information.

Summary

The essential elements of the plan are generally recognized. The preliminary sections set the stage for

the reader. Make the first impression professional, concise, and informative because the reader may

spend only a few minutes reviewing each plan. The major sections of the business plan describe the new

venture's strategy, operations, marketing, management, financial plan, and ownership structure. These

sections need to be as detailed as possible and internally consistent. The concluding sections provide

details on timing, schedules and milestones, and a summary. The appendix contains reference material

for documentation.

Each plan must be well written and organized, and it must anticipate the many questions that the reader

will have about the business. No plan, however, can answer all questions that may arise. It is important,

therefore, that entrepreneurs be familiar with all the details so they can respond to potential
http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/http://%20void%280%29/


6/6

unanswered questions and critiques.

Our menu

Green tea Sugarcane juice Raagi malt(door delivery) Fruit salads Honey Sweet corn Coconut water Crotons(plants) All juices Fruit counter Other healthy food items if any(optionally)

(developing a standard menu & preparing a standard ingredient chart of items

available)

Documents

A Business Enterprise is an Economic Institution Engaged in the Production And