Download - Create a Business Plan.docx
Electronic commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic
funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well.
Create a Business Plan
A business plan is a formal statement of a set of business goals,
the reasons why they are believed to be attainable, and the plan for
reaching these goals.
The information provided here is for external stakeholders- for example a
bank (if you are approaching them for finance), venture capital firm, a
private equity firm and any others from whom you seek investment or a
loan.
Content of a Business Plan
Before reading this section, please do note that the content provided here is
just for guidance purposes. Your business is unique and your plan should
reflect this fact. The content here is not specific to any type of business.
The material provided here is to guide you on what aspects to consider
when preparing a business plan.
Executive Summary
A business plan should contain an executive summary. This summarizes
the key points of a business plan. If you are approaching a bank for a
loan, or a venture capital firm for investment, you must include the
following points:
Company Information: Name, Proposed legal structure, minority and
majority investors. We have provided a section on Forms of Business
Organisation for your information. We also have a section on Legal
Basics to help you better understand the legal environment.
Brief description of project
Amount and length of loan (if approaching a bank)
Amount of investment required (if approaching a venture capital firm)
Show that the company can pay the bank back by including details on:
o Past financial performance
o Future revenue streams
o Any contracts that build some confidence on future revenue
streams
Terminal value (for venture capital firms)
Description of market opportunity and how the company seeks to take
advantage of this opportunity.
Background Information
Some information may be included in the executive summary
(mentioned above) and details may be provided in this section.
Current Status of Company:
Some information you may want to include-
Number of employees, annual sales figures, key product lines
Current stage of development (for start-ups)
Corporate structure-
o Sole proprietorship
o Partnership
o Limited Liability Partnership
o Private Limited
o Public Limited
History of company
You may want to include the founding date, major successes and
strategically valuable learning experiences.
A profile of the management team
Talk about the owners, board members, promoters (in case of
venture capital funding), partners and other key positions in
your company.
Marketing Plan
Usually, a marketing plan has five objectives. For in-depth information,
please visit our Marketing section.
1)Product
Here you should seek to differentiate your product from its
substitutes. Questions such as why your product is better, how
will customers adapt to your new product (any switching costs
involved) should be answered here.
2)Pricing
How will you price your new product, and pricing strategy
should be included here.
3)Distribution/Positioning
How are you planning to distribute your goods? Are you
partnering with any distributors? Include any on-going
negotiations here as well. Read our Distribution
Channels section for more information.
4)Demand Management
This term refers to the management and distribution of, and
access to goods and services based on needs.
5)Promotion and Brand Development
Mention the steps you have taken or plan to take in relation to
building your brand name and promoting your product. Visit our
section on Marketing Communications for ideas and help on
how to promote your product.
6) User Experience
Apart from the traditional marketing functions, a lot of
companies are now focusing on the user experience. Factors
such as the purchase process, the retail environment, exclusivity
of the product are some important considerations here.
Operational Plan
In this section you should talk about how to service your clients
effectively and efficiently. You may want to include the following:
Manufacturing Plan- talk about your supply chain, inputs required
for production, facility requirements, equipment requirement and
warehousing needs (if any).
Information and Communications Technology Plan- what
technology and communications mechanisms do you plan to include?
Talk about software requirements- off the shelf or custom made. Read
our section on how to integrate Information and Communication
Technology in your company. If you plan to have a website, include
the development plan here.
Team Building- Define key roles of staff, compensation, list of roles
and management structure here. We have provided a section
on Human Resources which will help you in determining what to write
here. Similarly, training needs and methods need to be talked about
here. Visit our Training and Skill Development Section to gain further
insights.
Intellectual Property Plan- your intellectual property is a very
important asset to your company. Talk about how you plan to protect
your IPR (trademarks, patents, copyrights etc) in this section. We
have provided a database on IPR where more information is available.
If your company faces a lot of variable costs, then you may want to
include a cost allocation model.
Financial Plan
A financial plan is a series of steps which are carried out, or goals that
are accomplished which relate to a business’ financial affairs. You may
want to include the following:
Current Financing- key investors or owners, existing loans and
liabilities, any financing received prior to approaching a bank or
venture capital firm.
Funding Plan
Financial Forecasts-
balance sheets,
income statements,
cash flow statements
The above should all be mentioned here. Sometimes you may want to
include projections for future earnings (may be useful if you are
approaching a bank for a long term loan or a venture capital firm).
Risk Analysis
1.Risk Evaluation
Market Risks- threat of new competitors, slower than expected
adoption are some of the risks involved which fall under market
risks.
Operational Risks- risks that may arise in the day to day
running of operations
Staffing Risks- any risks related to your workforce should be
identified and mentioned here.
Financing Risks- liabilities, cash flows, working capital are
some of the financing risks that companies face. Clearly identify
the risks your business faces here.
Managerial Risks
Regulatory Risks- Government policies and rules may change
at any given time and some of these changes may adversely
affect your business.
2.Risk Management Plan
Now that you have identified the risks your organisation faces,
in this section you will have to talk about how you plan to
mitigate these risks. Examples are- methods and procedures to
limit liabilities, reserve funds, continuity of operations plan.
Women Entrepreneurship
Women entrepreneurship has been recognised as an important source of
economic growth. Women entrepreneurs create new jobs for themselves
and others and also provide society with different solutions to management,
organisation and business problems. However, they still represent a
minority of all entrepreneurs. Women entrepreneurs often face gender-
based barriers to starting and growing their businesses, like discriminatory
property, matrimonial and inheritance laws and/or cultural practices; lack
of access to formal finance mechanisms; limited mobility and access to
information and networks, etc.
Women’s entrepreneurship can make a particularly strong contribution to
the economic well-being of the family and communities, poverty reduction
and women’s empowerment, thus contributing to the Millennium
Development Goals (MDGs). Thus, governments across the world as well as
various developmental organizations are actively undertaking promotion of
women entrepreneurs through various schemes, incentives and promotional
measures.
Women entrepreneurs in the four southern states and Maharashtra account
for over 50% of all women-led small-scale industrial units in India. Click
here for a state-wise break-up of women-led SSIs
Policies and Schemes for Women Entrepreneurs in India
In India, the Micro, Small & Medium Enterprises development
organisations, various State Small Industries Development
Corporations, the Nationalised banks and even NGOs are conducting
various programmes including Entrepreneurship Development
Programmes (EDPs) to cater to the needs of potential women
entrepreneurs, who may not have adequate educational background
and skills. The Office of DC (MSME) has also opened a Women Cell to
provide coordination and assistance to women entrepreneurs facing
specific problems.
There are also several other schemes of the government at central
and state level, which provide assistance for setting up training-cum-
income generating activities for needy women to make them
economically independent. Small Industries Development Bank of
India (SIDBI) has also been implementing special schemes for women
entrepreneurs.
In addition to the special schemes for women entrepreneurs, various
government schemes for MSMEs also provide certain special
incentives and concessions for women entrepreneurs. For instance,
under Prime Minister’s Rozgar Yojana (PMRY), preference is
given to women beneficiaries. The government has also made several
relaxations for women to facilitate the participation of women
beneficiaries in this scheme. Similarly, under the MSE Cluster
Development Programme by Ministry of MSME, the contribution
from the Ministry of MSME varies between 30-80% of the total
project in case of hard intervention, but in the case of clusters owned
and managed by women entrepreneurs, contribution of the M/o
MSME could be upto 90% of the project cost. Similarly, under
the Credit Guarantee Fund Scheme for Micro and Small
Enterprises, the guarantee cover is generally available upto 75% of
the loans extended; however the extent of guarantee cover is 80% for
MSEs operated and/ or owned by women.
Some of the special schemes for women entrepreneurs implemented
by the government bodies and allied institutions are provided below.
Schemes of Ministry of MSME
o Trade related entrepreneurship assistance and development
(TREAD) scheme for women
o Mahila Coir Yojana
To read more on activities of Ministry of MSMEs for women
development, click here.
Schemes of Ministry of Women and Child Development
o Support to Training and Employment Programme for Women
(STEP)
o Swayam Siddha
Schemes of Kerala State Women’s Development Corporation
o Self employment loan programmes
o Educational loan schemes
o Single women benefit schemes
o Job oriented training programmes
o Marketing support for women entrepreneurs
o Autorickshaw / school van’s driver scheme
Kerala Government’s Women Industries Programme
Delhi Government’s Stree Shakti Project
Schemes of Delhi Commission for Women (Related to Skill
development and training)
Incentives to Women Entrepreneurs Scheme, 2008, Government of
Goa
Magalir Udavi Scheme, Pudhucherry Government
Financing Schemes by Banks/ Financial Institution's
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Description of Idea
Cereal SachetsEach sachet should just have enough cereal for one glass of milk so that it neither gets too thick nor stay watery.
Low Fat FoodCreate commercially producible low fat food which also takes into account certain dietary requirements of customers like gluten intolerance and lactose intolerance.
Gluten Free Baked Products
As an increasing number of people are gluten intolerant, this business venture will cater to their needs.
Homemade Potpourri
There has been an increase in the popularity of homemade potpourri in the last few years. This has the potential to be transformed into a profitable venture by using innovative techniques and having good marketing and sales skills.
Gourmet Popcorn
Use innovative recipes and flavors of popcorn to make this business venture successful. The profit margin is high and the potential to expand is there if proper marketing and sales strategies are incorporated.
Frozen Foods
The work hours of people are increasing. Due to this they no longer have the time to make meals from scratch. This business will target these people. This business requires a mix of good recipes and skills of managing sales and marketing.
Dog TreatsBaking gourmet dog treats and selling them either directly to consumers or to bigger distibutors like malls etc.
Fresh Pasta Making
Supply Italian restaurants with fresh or dried pasta. This business has the potential to expand.
Chocolate Making
Starting a business that creates chocolate treats is a great new enterprise to initiate. It can be opened as a joint venture with a restaurant or catering service.
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Selling Rare Fruits, Flowers and Nuts
Exotic products and gift items are proving to be popular everywhere. Find yourself something new and exciting to sell