We have business ideas and thought in our mind and business plan is just articulate it on a paper very clearly, concisely and systematically so that we can easily convince our possible investors. In the business plan, our main focus is
It should be completed and in sequence format.
It should be in well organized.
It should have used in data, image with facts and evidences. Suppose we are planning for coffees shop business in Kathmandu and we mention our business plan in ktm valley has 30 lakhs population and 20 lakhs will be our possible customer doesn’t carry any value in business plan so we should keep the evidence.
The entrepreneur or business person is prepare the business plan for motivating or convincing our possible investors. So that it should be clear, concise, and systematics based on facts and evidences. The business plan can be shown to finances to encourage them to invest money in a company (Michael & Ireland, 2001). At this time most of new enterprise are failed because they are not aware of business plan and others stuffs. So nobody trust them and nobody want to invest their ideas so they failed. So the business plan basically guide us on a right track and it helps to understand the business process very systematically so that not even a single point is missed out (Srivastava, 2005).
Why business plans is important for new enterprises?
Or
What are need of preparing business plan?
Many enterprise owners have a no ideas about their business objective so that business plan help them to identify their business needs and requirements.
In business plans has clearly provided specific guidelines and milestones in a written form so that our angel investors can easily understand the business process.
It also helps to focus on growth of the business and manage the business process too.
We can use business plan as a communication tools so that we can easily convince others through this medium (business Plan).
It serves as an operational tools which gives details of the past, present and future activities of a business (Stanley & Rich).
The main component of business plan are Executive summary, Vision statement, market and competitive analysis, marketing strategy, products/ services, marketing/ sales, operations and financial plan (Ramaswamy & Namakumari, 1999). It covers all the process clearly in written format and it is used for me as a reminder tools or guider. Business plan should have all required component in order form clearly so that audience or investor can easily understand the business ideas and thoughts.
Executive Summary: At first, we should have clear business summary. It has clearly mentioned business description, business objective, in short about product and service, market profile, and competitive details with possible projected growth for the company and the team (Joseph, 1999).
Vision: Vision is clear picture where we want to reach in future. So in business plan we should mention our vision clearly, where the organization want to be in future.
Market and competitive analysis: In this section, we should clearly present the data on the basis of market research and study. It covers company profile, team profile and details, different market segment and target market, Details of customer and their buying pattern and different others changing variables in a data format. In competitive analysis section here it covers industries overview, nature of competitions, industry changes, primary competitors, competitive products/ services and SWOT analysis (Adams, 1999).
Market Strategy: After completion of market study, research and competitive analysis then we make strategy on the basis of research. So in this section we clearly mention what strategy we apply in the business like Low Cost, Focused Strategy, or Differentiation Strategy.
Product/ Service: In this section has clearly explained, what types of product and services are offered to customer. What are the USPs for new product and services? It also provides each details about product and service. It also gives what could be the other future product and services.
Marketing and Sales: In this section has clearly explained the marketing plan and strategy and promotion camping.
Operation: In this section has explained about possible human resources and supply chain process, what types of CRM services we provide to our customer and what service we provided them.
Financial Plan: Financial plan is detail about where the money comes in and goes out. It should include Balance Sheet, profit and loss statement, cash flow statement, and some of the important Ratios (Gerald I, 2002). So that our possible investors can easily visualize the data and calculation and they are able to analyze when the return will be back.
References
Adams, B. (1999). Adams Streetwise Complete Business PlanAdams Streetwise Complete Business Plan. Adams Media .
Gerald I, W. (2002). The Analysis and Use of Financial Statements. Hardcover .
Joseph, C. (1999). "The Complete Book of Business Plans: Simple Steps to Writing a Powerful Business Plan. Small Business Sourcebooks .
Michael, H., & Ireland, A. (2001). Strategic management: competitiveness and globalization. Thomson Learning 4th ed .
Ramaswamy, V., & Namakumari, S. (1999). Strategic Planning: Formulation of corporate strategy (Texts and Cases)-The Indian context. New Dheli : Macmillan India Limited 1st Edition .
Srivastava, R. (2005). Management Policy and Strategic management (concepts skills and practice). Himalaya Publishing House .
Stanley, & Rich, R. (n.d.). Business Plans That Win $$$. Lessons from the MIT Enterprise Forum .
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We have business ideas and thought in our mind and business plan is just articulate it on a paper very clearly, concisely and systematically so that we can easily convince our possible investors. In the business plan, our main focus is
It should be completed and in sequence format.
It should be in well organized.
It should have used in data, image with facts and evidences. Suppose we are planning for coffees shop business in Kathmandu and we mention our business plan in ktm valley has 30 lakhs population and 20 lakhs will be our possible customer doesn’t carry any value in business plan so we should keep the evidence.
The entrepreneur or business person is prepare the business plan for motivating or convincing our possible investors. So that it should be clear, concise, and systematics based on facts and evidences. The business plan can be shown to finances to encourage them to invest money in a company (Michael & Ireland, 2001). At this time most of new enterprise are failed because they are not aware of business plan and others stuffs. So nobody trust them and nobody want to invest their ideas so they failed. So the business plan basically guide us on a right track and it helps to understand the business process very systematically so that not even a single point is missed out (Srivastava, 2005).
Why business plans is important for new enterprises?
Or
What are need of preparing business plan?
Many enterprise owners have a no ideas about their business objective so that business plan help them to identify their business needs and requirements.
In business plans has clearly provided specific guidelines and milestones in a written form so that our angel investors can easily understand the business process.
It also helps to focus on growth of the business and manage the business process too.
We can use business plan as a communication tools so that we can easily convince others through this medium (business Plan).
It serves as an operational tools which gives details of the past, present and future activities of a business (Stanley & Rich).
The main component of business plan are Executive summary, Vision statement, market and competitive analysis, marketing strategy, products/ services, marketing/ sales, operations and financial plan (Ramaswamy & Namakumari, 1999). It covers all the process clearly in written format and it is used for me as a reminder tools or guider. Business plan should have all required component in order form clearly so that audience or investor can easily understand the business ideas and thoughts.
Executive Summary: At first, we should have clear business summary. It has clearly mentioned business description, business objective, in short about product and service, market profile, and competitive details with possible projected growth for the company and the team (Joseph, 1999).
Vision: Vision is clear picture where we want to reach in future. So in business plan we should mention our vision clearly, where the organization want to be in future.
Market and competitive analysis: In this section, we should clearly present the data on the basis of market research and study. It covers company profile, team profile and details, different market segment and target market, Details of customer and their buying pattern and different others changing variables in a data format. In competitive analysis section here it covers industries overview, nature of competitions, industry changes, primary competitors, competitive products/ services and SWOT analysis (Adams, 1999).
Market Strategy: After completion of market study, research and competitive analysis then we make strategy on the basis of research. So in this section we clearly mention what strategy we apply in the business like Low Cost, Focused Strategy, or Differentiation Strategy.
Product/ Service: In this section has clearly explained, what types of product and services are offered to customer. What are the USPs for new product and services? It also provides each details about product and service. It also gives what could be the other future product and services.
Marketing and Sales: In this section has clearly explained the marketing plan and strategy and promotion camping.
Operation: In this section has explained about possible human resources and supply chain process, what types of CRM services we provide to our customer and what service we provided them.
Financial Plan: Financial plan is detail about where the money comes in and goes out. It should include Balance Sheet, profit and loss statement, cash flow statement, and some of the important Ratios (Gerald I, 2002). So that our possible investors can easily visualize the data and calculation and they are able to analyze when the return will be back.
References
Adams, B. (1999). Adams Streetwise Complete Business PlanAdams Streetwise Complete Business Plan. Adams Media .
Gerald I, W. (2002). The Analysis and Use of Financial Statements. Hardcover .
Joseph, C. (1999). "The Complete Book of Business Plans: Simple Steps to Writing a Powerful Business Plan. Small Business Sourcebooks .
Michael, H., & Ireland, A. (2001). Strategic management: competitiveness and globalization. Thomson Learning 4th ed .
Ramaswamy, V., & Namakumari, S. (1999). Strategic Planning: Formulation of corporate strategy (Texts and Cases)-The Indian context. New Dheli : Macmillan India Limited 1st Edition .
Srivastava, R. (2005). Management Policy and Strategic management (concepts skills and practice). Himalaya Publishing House .
Stanley, & Rich, R. (n.d.). Business Plans That Win $$$. Lessons from the MIT Enterprise Forum .