Business Plan

XERXES V DASTUR PARTNER V.S.DASTUR &CO.07-02-2015

What is a Business Plan ?

A Business plan is a detailed document that serves as the framework charting the course for an enterprise to achieve desired benchmarks and goals within a pre-planned time frame .

Importance of a Business Plan

A “Business Plan” is a “Selling Document” that conveys the excitement and promise of your business to any potential backers and stakeholders .

Objectives of a Business Plan.

• To sell yourself on the business

• To obtain bank financing

• To obtain investment funds

• To establish strategic alliances

• To obtain initial contracts

• To attract key employees

• To assist in the completion of mergers and acquisitions

• To motivate and focus your management team

Business Plan Milestones

Types of Business Plans

Introduction Plan

• Plan at the time of introducing a business .

• Benchmarks organization’s Goals .

• It is the Basis for future organization planning .

• Addresses Core market issues .

• Aims at a strong foundation .

Long Term Plan

• Usually for a period of 10 or more years .

• Emulates the organizational goals into strategy .

• Takes future market expectation into consideration .

• It is flexible and evolving but determines short term plans .

Short Term Plan

• Usually annual.• Specific Goals

for the year are determined.

• Compared with actuals and course correction .

• Plans are determined on the basis of Long term and introduction Plans .

Components of a Business plan:

• Concept of product and service to be provided .

• Organizational set up and resources .• Investing & Financing Plans.• Statutory Compliances. • Risk assessment.• Marketing plan.• Development Plan.• Production or operation plan. • Management team and key resource

personnel.

Concept of product/service to be provided .

A product or a service is the lifeline of an organization .It is the primary determinant of an enterprise's Growth and wellbeing .

Concept of product/service to be provided .

A product or a service is the lifeline of an organization .It is the primary determinant of an enterprise's Growth and wellbeing .

• Identify the product or service that would fulfill a human need .

• Concentrate on technical details ,quality and sophistication .

• Chart out Standard Operating Procedures .

• Identify Key markets and scale of business.

• Carry out several test checks and runs before you launch a new product.

Organizational set up and resources .

Every Start-up has to make a primary long term decision regarding its organizational set. Several factors should be kept in mind to choose a right set up.

Organizational set up and resources .

Every Start-up has to make a primary long term decision regarding its organizational set. Several factors should be kept in mind to choose a right set up.

• Scale of Production

• Investment in plant and machine tools required .

• Degree of technical knowhow required .

• Money value of intellectual property ,patents, copyright and goodwill.

• Expected investors .

• Normal Market practices .

Investing & Financing Plans.

All businesses require a robust and accurate Financial plan .Investment and financial structures form the corner stone of a successful business. Budgets, cash flow ,MIS are part of all organizations.

Investing & Financing Plans.

All businesses require a robust and accurate Financial plan .Investment and financial structures form the corner stone of a successful business. Budgets, cash flow ,MIS are part of all organizations.

• Prepare Budgets for the financial stability of the organization.

• Create a plan that would have favorable debt equity ratio .

• Plan must aim at greater working Capital Turns .

• Factor in opportunity costs and time value of Money .

• Do not leave funds idle .

• Make the best of what you have .

Statutory Compliances.

Statutory Compliances are mission critical to the very existence and growth of an Entity it is the Law of the land that has to be Adhered to .

Statutory Compliances.

Statutory Compliances are mission critical to the very existence and growth of an Entity it is the Law of the land that has to be Adhered to .

• Tax Implication on the entity

• Compliances with Labour Laws

• Compliance with Company’s act.

• Shops and Establishment related laws .

• Compliance with SEBI requirements listing agreements .

• Compliance with RBI requirements.

Risk assessment.

Risk is an inevitable part of any business model .The ability to manage risk gives is the most important element of a plan .

Risk assessment.

Risk is an inevitable part of any business model .The ability to manage risk gives is the most important element of a plan .

• Identify Risk

• Carry out SWOT Analysis to understand the weaknesses and threats .

• Insure against risk of Flood ,Fire and inflammables .

• Foresee market risks .

• Control risk of data /design theft .

• Introduce Internal controls ,checks and audits .

• Devise a backup plan .

Marketing and Development Plan.

Marketing is a key function that propounds the growth of all business entities. It helps the business to evolve as per the needs of the business .

Marketing and Development Plan.

Marketing is a key function that propounds the growth of all business entities. It helps the business to evolve as per the needs of the business .

• Identify appropriate positioning of product life cycle .

• Identify a detailed promotion and advertising strategy .

• Create an effective marketing budget .

• Provide for research and development expenses .

• Identify and review the strategy to ensure costs are covered .

Management team

and key resource personnel.

Dedicated, enthusiastic and experienced Human resources helps an organization to function smoothly .Manpower planning is one of the greatest challenges for any enterprise .

• Important to place the Right man in the right Job .

• Opportunities for training and self development are very important for any organization .

• Staffing function planning and salary structuring are essential activities .

• Detailed organizational chart is an essential plan .

Keep in mind

• Keep it simple .

• Plan should be realistic .

• Document your plan .

• Plan requires a dedicated review and course collection .

• Planning is a long term investment .

• Planning is a synergy of all functions.

Thank you