Business Plan in Entrepreneurship.

Submitted By -: Submitted To -:Mushir Alam. Md. Moniruzzaman.B.com (Prof)3rd Year. Faculty of Commerce. Sharda University. Sharda University.Greater Noida. Greater Noida.

Acknowledgement

Thank people, you think, deserve your appreciation.

It was an interesting piece of work, given that I had just spent the past two weeks working

and finishing it. This essay is the result of my high degree of intensity and perseverance.

First of all, I would thank God, Almighty. I am what I am solely because of Him. My

parents and my faculty members who are an integral part of my life and have been a

constant source of inspiration.Their sacrifice is the reason as to why I have persevered with

considerable hard-work in every sphere of my life so far. In addition, I would like to thank

my classmates for their precious support and advice.

Abstract

This essay has set out to discuss the detail and design of a business plan with regards to the

various critical aspects that pertain to its design as well as implementation.

The essay would enable me to gain extensive insights into how business plan is designed

both efficiently and effectively. More vitally, the essay would allow me to grasp the

greatest majority of the course, ‘Entrepreneurship-Fundamentals’ since business planning

entails understanding of most of the topics covered in the aforementioned course.

I have conducted an extensive literature review to collect information the crucial facets of a

business plan. Such literature has included recent articles, internet sources, books and

sample business plans.

Introduction -:

Business Plan is a very important aspect in establishing a business or expanding a business.

It is very important thing for an entrepreneur. Business plan is a way to think and articulate

how business plan helps to achieve our goal in a business. The essay will help you to learn

and know how to make a proper business plan and its aspects for a business.

This essay is planned on the basis of the process, benefits, components, types and purpose

of a business plan.

Business plan helps to make a business successful and realistic, achievable and viable.

Role of the executive summary and the impact of executive summary on the management

and the investors, and the contents of the executive summary can be seen in the essay.

Oral presentation in business plan is very important. You can know the contents of a oral

Presentation in a Business Plan.

Contents -:

Entrepreneurship.

Entrepreneur.

Business Plan.

Primary Reasons for a Business Plan.

Purpose of Business Plan.

Components of Business Plan.

Types of business Plan.

Executive Summary in A business Plan.

Criteria of A sound Business Plan

Factors for a sound business Plan.

Who Reads and Why.

Parts of An oral Presentation of a Business Plan.

Conclusion.

Reference.

Entrepreneurship -:

Entrepreneurship is the act art of being an entrepreneur or one who takes an innovation or

introducing new things in business acumen in an effort to transform innovations into

economic goods.

Ricard Cantillion (1730) -: Entrepreneurship is defined as self –employment of any sort.

Entrepreneurs buy at certain prices in the present and sell at certain prices at prices in the

present and sell at uncertain prices in the future. The entrepreneur is a bearer of

uncertainty.

Gartner (1988) -: The creation of new organization.

The entrepreneur centre of Miami university of Ohio has an interesting definition of entrepreneurship. Entrepreneurship is the process of identifying, developing and bringing a vision of life. The vision may be a innovative idea, an opportunity, or simply a better way to do. The end result of this process is the creation of new venture, formed under the condition of risk and considerable uncertainty.

Entrepreneur -:

Entrepreneur is a person who exercises initiative by a organization, a venture to take benefit of An opportunity and as the decision maker who decides what, how and how much of a good or a Service will be produced.

Jean Baptiste Say (1816) -: The entrepreneur is the agent who unites all means of production and .Who finds in the value of the products …the reestablishment of the entire capital he employs, and The value of the wages, the interest and rent which he pays, as well as profits belonging to him .

Israel Kirzner (1979) -: The entrepreneur recognizes and acts upon market opportunities. The Entrepreneur is essentially an arbitrageur. In contrast to Schumpeter’s view point, the entrepreneur moves the market towards equilibrium

Business Plan -:

In simple Terms a business plan is a document which:

Sets out yours company plans.

Shows how those plans can be achieved.

Demonstrates that the planned outcome meets the requirements of the reader.

A business Plan is a formal statement of a set of business goals, the reasons they are

attainable,

And the plan for reaching those goals .It may also contain background information about

the

Organisation or team attempting to reach these goals .

A business Plan is a road map that provides directions so a business can plan its future and

helps it avoid bumps in the road.

It is a written document that describes in detail how a new business is going to achieve its

goals and aim.

The business plan should describe your company and project concisely and accurately.

However, a business plan is also a selling document and the description should therefore

also be attractive.

Whilst the business plan should recognize that your project will not be a stationery target,

it should show the current status, current needs and future prospects of the project. The

plan should also emphasize the strengths of your company but at the same time be realistic

about its problem-and how you propose to overcome and minimize them.

Primary Reason For writing A Business Plan -:

The primary purpose of a business plan is to making a set of goals in a business.

1. Money.

The first and most common reasons retailers should write a business plan is funding.

Whether you’re a start up or have been in business from many years, it is highly likely at

some point your business will need money. Bankers, venture capitalist, angel investors and

Other lenders generally require a business plan before backing a business financially.

Having a well written business plan gives your business a good chance of securing the

money needed to operate or expand the business.

2. Set Goals.

A business Plan can do more than secure funding. It can serve as a road map or a blueprint

for what your business is to become. All your dreams and hope for your business are

outlined in the business plan. These goals will change and expand as your business grows,

but using the business plan as a tool can help you stay on track.

3. Daily Operations.

Within your business plan should be an outline of your daily operations of your business.

Store policies, staffing, customer service, and other operating procedures are written out

and intended to be used as a guide in your daily operations.

4. Foresee Problems.

The best way to determine, whether or not your business idea may work is to write a Business plan. Detailing your operations, marketing, management and financial will allow you to test the feasibility of your business concept. Not only does this save time, it can Save a lot of money if the business is destined or failed. Once you launch the business Following the business plan, will allow you to see where your business is headed, where it has been and any possible problems that may occur.

5. Education.

There is absolutely no better way to learn about your customer demographics, marketing.

Opportunities and other aspect of your retail business than to spend time creating a well-

research business plan.

6. Exit Strategies.

It may be hard to plan your exit while planning your beginning; however a successful

business plan includes long-range plans. While you can’t foresee everything the future has

in a store, it’s important to determine what will happen to the business if you decide to

move, experience a death, Divorce or other life altering event.

Purpose of a Business Plan -:

Any fund raising application will almost certainly require the submission of a business

plan. This applies equally to banks for overdrafts and loans, government departments for

grants, and venture capital investors for loans or equity. Many parent companies also

require subsidiaries to submit a business plan every year.

However, Business plan are not just for external purposes. They are also an important

planning document for a company’s own management. In this chapter we briefly discuss

what each of these potential readers of a business plan will want to see covered in order to

assess whether their own particular requirements have been satisfied.

Business Planning is done to provide direction and increase the probability for success

within any businesses. In agricultural business, planning may be even more vital because

of the inherent uncertainty associated with agricultural production. Business plan is done to

provide direction and increase the probability for success with any business.

The Main Purposes of a Business Plan -:

Maintaining Focus

Securing Financing.

Fueling Ambitions.

Enlightening Executives.

Components of a Business Plan -:

Executive Summary.

Company Analysis.

Industry Analysis.

Customer Analysis.

Competitive Analysis.

Marketing Plan.

Operating Plan.

Management Plan.

Financial Plan.

Appendix.

Types of a Business Plan -:

Summary Business Plan -: A summary business plan is a type of business plan which has

the summary of the business plan detail and the detail of the duties and responsibilities and

work. It contains important dates and works to be formed on the basis of the business plan.

It is of 10-15 pages. It is for the new ventures at the early stage of development.

Operational Business Plan -: An Operational business plan is a type of internal business

plan that often provides employees with information like annual deadlines, managerial

team responsibilities, mile stones and important dates for the upcoming year. The

document is sort out of a road map for the upcoming year’s business calendar. It is of 40-

100 Pages. It is for the internal audience and it is a too for creating a blueprint for a new

venture operation.

Full Business Plan -: A full business plan is a written document and a detailed plan setting

out the objectives of a business ,the strategy and tactics planned to achieve them, and

expected profits usually over a period of three to ten years. It is to direct a business for

future. It is a document related to business. It is of 25-35 pages. It is for new ventures who

needs funds and financial services.

Executive Summary in a business Plan -:

The executive summary is a crucial part of a business plan. It is the synopsis of the main points of your business plan, highlighting the entire features of the business plan. This is usually the first part of your plan that prospective investors will read and it must be interesting concise. Getting the executive summary right is crucial for ant business looking for investment and funding. While the business plan’s executive summary is the first thing the readers of your business plan see, it should be the last part of the business plan you write.

A business plan’s executive summary includes -:

A description of your company, including your products and services. Your mission statement. Your business management. The market and your customer. Marketing and sales. Your competition. Your business’s operation. Financial projections and plans.

Purpose for readers -:

The purpose of the executive summary is to explain the main features of your business in a way that will make the reader want to learn more. Yet it must also include enough information that investors can see the potential behind your business without having to read the entire plan. The executive summary is an overview of your entire business plan and should leave readers with the feeling that the business in competently run, and has energy and enthusiasm.

Purpose For business -:

Writing the executive summary can help you with several elements of developing your business plan. Writing the summary forces you to condense your business plan and focus on the key issues in developing the business. The items covered in the executive summary should be given in order of importance, so writing the summary will help you tu decide which parts of the entire plan are most crucial, so you can prioritize. The summary can also give you a foundation for writing the entire business plan; provide you with place to start and an outline for your full plan.

Importance -:

The executive summary is the first plan of your business that people will read. For many prospective investors, it is the only part of the plan they will read, as most investors will base their initial decision on whether to read further based on the executive summary. A well executive summary will allow the reader to grasp the main features of the business, and leave the reader exited and wanting to learn more.

Criteria of a Sound Business Plan -:

- Is The Business Realistic?

Many Businesses have been built around unrealistic ideas, only to crash as fast as they

started. A business has to be realistic in what type of business it is, where it will be located,

and what profits will be expected. A business to turn water into gold is not realistic.

Putting ice cream parlour at the North Pole is not realistic. Expecting to make million

dollars in the first year is not realistic. Every business must be based upon a realistic goal

Is business achievable? There is often confusion about something being realistic versus being achievable. a business idea may pass the reality test, but may not be achievable. Example, starting a computer manufacturing company is a realistic goal, however, it will take a billion of dollars to start and there is a only million dollar available, then it is not achievable. This is one of the setbacks to most startups business. The business idea is great, it’s realistic, but there is no way to achieve it, under the current condition.

 Is Business Viable?

Viability, in business world, has to do with longevity. A business can be realistic and achievable but will it last for the long haul? If a business cannot sustain itself over a long period of time, then the business may as well as not been started. The main reason for starting a business is, hopefully, to provide a long term monetary gain. Even though there is no guarantee of longevity in a business, if the best outlook is only one year, then maybe it’s not such a good idea. After all, there is very little business that will make a profit within the first year, so it would be better not to be started. So, Any business plan must be

based upon it being realistic, achievable and viable. If these three criteria do not pass the test, then it will be best to rethink the business.

Factors of a Sound Business Plan -:

It fits the business needs.

It should be realistic. It can be implemented.

It should be specific. You can track result against plan.

It clearly defines responsibilities for implementation.

It clearly identifies assumptions.

It is communicated to the people who have to run it.

It gets people committed.

It’s kept alive by follow up and planning process.

Parts of an Oral Presentation of a Business Plan -:

1. Title Slide.

2. Problem.

3. Solution.

4. Business Model.

5. Managment Team.

6. Industry and Target market.

7. Competetion.

8. Intelluctual Property.

9. Financial Projections.

10. Current status, amount of money, requested, and projected use of funds.

Who Reads It And What They Look For -:

The Management Team –:

The management looks the business plan for operation, management, planning and point

out the problems management is facing. Look the financial section of the plan and its

improvement. They are involved in writing and updating the business plan.

Investors and Lenders -:

Investors read the business plan for expressing interest in investing in the company.

Bankers and other lenders want to gauge the creditworthiness of company principles and

see what kind of co lateral and guarantees are available.

Managers and Employees -:

They read the business plan to know the process and criteria to work on the business plan.

They read the business plan to organise the business in proper way. They read for the

proper management of the work of the business plan.

Partners -:

Partners read the business plan to understand the objective and operating procedure to

achieve the aim or goal of a business plan. It will also help in their career growth. They

study for knowing the progress work and the lack in work related to the business pan.

Conclusion -:

This essay is for inspiration and providing detail of how a business plan is made and the

detail about entrepreneurship and entrepreneur.

The thrust of a business plan is brought into a model suggested

as a guide for thinking and practicing business and achieving the goals of a business.

Upcoming changes are very much required for establishing a business or expanding a

business through business plan. A business plan provides a platform for running a business

and establishment or expanding. A business plan sets out your business strategy to achieve

the goal. I have tried to explore the procedure of a business plan and it’s purpose so as to

take initiative towards a business. The essay is model is built to support learning and know

the process regarding business plan. A business plan is very important part of

entrepreneurship and for the entrepreneurs. It includes the benefits and process of business

plan. The detail about oral presentation and executive summary is also provided.

Reference -:

Google.com

Yahoo.com

Wiki.answers.com

Wikipedia.com

4shared.com

business.govt.nz

allbusiness.com