Introduction To Introduction To Business PlanningBusiness Planning

For EntrepreneursFor Entrepreneurs

Sajjad HamidSajjad HamidSME ConsultantSME Consultant

Session OutlineSession Outline Some successful entrepreneursSome successful entrepreneurs What is a business plan?What is a business plan? Functions of business planningFunctions of business planning Components of a business plan:Components of a business plan:

MissionMission Analysis of the internal & external Analysis of the internal & external

environmentenvironment Operations Operations MarketingMarketing FinanceFinance Human ResourcesHuman Resources

Successful EntrepreneursSuccessful EntrepreneursCharran The PublisherCharran The Publisher

Reginald Charran Reginald Charran is an example of an is an example of an entrepreneur who entrepreneur who put together the put together the pieces over time; pieces over time; planning his moves planning his moves every step. every step.

Successful EntrepreneursSuccessful EntrepreneursDindial SikumarDindial Sikumar

Meet one of the Meet one of the country’s most country’s most innovative farmers. innovative farmers. He’s one of the He’s one of the pioneers of grow pioneers of grow box farming. Also box farming. Also has a plant nursery has a plant nursery and manufactures and manufactures pepper sauce. pepper sauce.

Successful EntrepreneursSuccessful EntrepreneursBally The Hair StylistBally The Hair Stylist

Bally is one of the Bally is one of the country’s leading country’s leading hair stylist and his hair stylist and his target can easily target can easily pay 4 times more pay 4 times more for a hair cut. His for a hair cut. His clients are the rich clients are the rich & famous& famous

Importance of Business Importance of Business PlanningPlanning

How can business planning deal with How can business planning deal with some of these ways?some of these ways?

It can help chart the way forwardIt can help chart the way forward It can assist in resource allocation & It can assist in resource allocation &

cash managementcash management It helps in strategy and beating the It helps in strategy and beating the

competition competition

Business PlanningBusiness PlanningWhat is a business plan?What is a business plan?

What is a Business Plan?What is a Business Plan?Is a road map that outlines the Is a road map that outlines the

entrepreneur’s proposed or current entrepreneur’s proposed or current business venture, its business venture, its operationaloperational & & financialfinancial details, its details, its marketingmarketing opportunities & strategy, & its opportunities & strategy, & its manager’s manager’s skillsskills & abilities. & abilities.

Business PlanningBusiness PlanningFunctionsFunctions

1.1. Guides the company operations by Guides the company operations by charting its future & devises a charting its future & devises a strategy for successstrategy for success

2.2. To attract lenders & investorsTo attract lenders & investors3.3. It forces the entrepreneur to take a It forces the entrepreneur to take a

hard look at the business & assess hard look at the business & assess its chances of successits chances of success

Business Planning Business Planning OutlineOutline

Executive summaryExecutive summary Mission StatementMission Statement Business descriptionBusiness description Environmental & Industry AnalysisEnvironmental & Industry Analysis Business ObjectivesBusiness Objectives Marketing PlanMarketing Plan Operations PlanOperations Plan Financial PlanFinancial Plan Human ResourcesHuman Resources ConclusionConclusion

Mission StatementMission Statement Mission StatementMission Statement

What business are we in? What business are we in? What is the purpose of the business?What is the purpose of the business?

‘‘To help a girl reach her highest To help a girl reach her highest potential’-potential’-

Girl Girl GuidesGuides

Business DescriptionBusiness Description What are the business’s strengths & What are the business’s strengths &

weaknessesweaknesses A description of the firm’s capabilityA description of the firm’s capability What does the business bring new?What does the business bring new?

KFC KFC Strengths are its locations, brand name, Strengths are its locations, brand name,

etcetc Its not so unhealthy menuIts not so unhealthy menu

Environmental AnalysisEnvironmental Analysis

A description of the larger forces shaping A description of the larger forces shaping the world & impacting on your businessthe world & impacting on your business

An industry background outlining An industry background outlining opportunities & threats, trends, outlook opportunities & threats, trends, outlook for the futurefor the future

Trends Trends (examples)(examples):: Increased income & inflationIncreased income & inflation More working womenMore working women Time Poor consumerTime Poor consumer

Business ObjectivesBusiness Objectives The targets you are setting for your The targets you are setting for your

ventureventure What your business needs to achieve?What your business needs to achieve?

Examples:Examples: To achieve sales of $100,000 by 2014To achieve sales of $100,000 by 2014 To open a new store by 2015To open a new store by 2015 To meet all financial obligationsTo meet all financial obligations

Marketing PlanMarketing Plan This part outlines how to gain & keep This part outlines how to gain & keep

customers and how deal with customers and how deal with competitioncompetition Who are your Who are your customerscustomers, are they , are they

profitable, reachable, etc?profitable, reachable, etc? How are you going to How are you going to price price for profit?for profit? What What promotionspromotions to get business? to get business? What type of What type of distributiondistribution methods? methods? How are you going to cope with How are you going to cope with

competitioncompetition??

Operations PlanOperations PlanA description of how the firm will turn A description of how the firm will turn

its its inputsinputs into into outputsoutputs:: Supply chainSupply chain: who are these members and : who are these members and

what advantages they bring?what advantages they bring? QualityQuality: how are you going to meet the : how are you going to meet the

requirements of your customers?requirements of your customers? EfficiencyEfficiency: how are you going to reduce : how are you going to reduce

waste or maximize the use of resources?waste or maximize the use of resources? InventoryInventory: how it is going to be managed?: how it is going to be managed?

Financial PlanFinancial Plan

Deals with management of financial Deals with management of financial resources so that it will be used to resources so that it will be used to the benefit of the organization?the benefit of the organization? How are you going to How are you going to secure secure finance?finance? What is the timing of your What is the timing of your cash flowcash flow

(inflow & outflow)?(inflow & outflow)? When will the firm make a When will the firm make a profitprofit?? Can the proposed venture meet its Can the proposed venture meet its

current & future current & future obligationsobligations??

Human Resources PlanHuman Resources Plan The use of human capital to create The use of human capital to create

an advantage over your competitorsan advantage over your competitors How am I going to How am I going to source source the best the best

people & get the best from them?people & get the best from them? How is the firm going to How is the firm going to keepkeep them? them? How will I use my How will I use my human capitalhuman capital as a as a

competitive weapon?competitive weapon? How am I going to build a How am I going to build a great great

organization?organization?

ConclusionConclusion Business planning provides a road map Business planning provides a road map

for the entrepreneurfor the entrepreneur It takes all the important areas It takes all the important areas

(marketing, financial, HR, operations, etc) (marketing, financial, HR, operations, etc) and puts all together so the entrepreneur and puts all together so the entrepreneur can develop balanced strategiescan develop balanced strategies

It shows how the business owner will gain It shows how the business owner will gain competitive advantage & convince competitive advantage & convince investorsinvestors

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