A business plan is a deed which is prepared by the businessperson, which defines all the applicable internal information as well as external information which is required in starting any new business. Business plan is a combination of the functional plan like finance, marketing, human resource, and manufacturing plan related to business activity.
What is the importance of a Business Plan in India?
A business plan is a procedure to transform a business idea into a successful business. The following details are required-
Categorizing innovative designs;
Identifying strength and weakness;
Assessing the practicality of the concept;
Provides direction to the vision expressed by the entrepreneur;
Research of external environment for opportunities involved;
It evaluates the prospects of the business;
Allocation of resources in a proper manner;
Progress monitoring;
It facilitates the decision making progress.
Its assists in taking loans from Financial Institutions;
It convinces others to join the company;
Which firm or individual needs a business plan in India?
A person opening or expanding their business, which can devour resources like money or time, should draft a business plan for smooth functioning and better future.
Start-ups
Business Plan is recommended to start-up because it focuses mainly on the new ideas or endeavours and not on the implementation of those concepts.
A business plan will aid start-ups to have proper administration or organizational structure by setting up objectives and tracking down those on various intervals. Working as per their business plan will help them to achieve their targets in a more organized manner.
Established or registered firm
A business plan will help the established firms to develop a tactic and allocate the resources according to their policy for better management and high flow of revenue.
A business plan helps you to look on the assessment of the business. Company can use a business plan to set new goals and objectives and can monitor them accordingly.
What are the various categories of Business Plan in India?
The business plan is allocated into six categories-
Start-up business
This category of business plan includes sections that describe the kind of company, purpose, product, and service that the start-up is going to deliver. The investors will require the fiscal analysis with a spreadsheet providing detailed information about commercial areas not limited to income, benefit, and cash flow predictions.
Internal business
It targets a specific group of people within the industry, like the marketing team, which needs to analyze a particular plan. An internal business plan defines the current position of the company, which includes operational costs, profitability, and calculations during the plan.
Strategic
The strategic business plan lays down the foundation of any company. It differs from company to company. The company contains the following elements in its strategic plan-
Vision;
success factors;
Implementation schedules.
Mission statement;
Objective achieving strategies;
Feasibility plan
Feasibility plan designates the need for product or service the company is offering and capital required—this type of idea sanctions the further development.
Operational plan
They are the internal plans which define the elements that are related to the company actions. This summarizes employee accountability and responsibility.
Growth Plan for Business
They are the detailed description of planned growth, that is drafted for the internal as well as external determination. It comprises a complete description of the business. The plan provides thorough information to the potential stockholder.
What is the process for a business plan in India?
The business plan process is a step by step process-
Generation of idea
The first step is to distinguish entrepreneurs from the standard business. Foundations of new ideas that any entrepreneurs can get are-
Research and development
Customers
Dealers and retailers
Existing companies
Employees
Scanning of the environment
The next step is to scan the aspects that can affect the business concepts. The elements includes external and internal environment surrounding the business activities-
Socio-cultural appraisal
Economic appraisal
Technological appraisal
Government appraisal
Demographic appraisal
Government appraisal
Market
Production
Human resource
Finance
Feasibility analysis
It refers to direct a detailed report on every feature that is pertinent to the business. The analysis comprises-
Market analysis is started to calculate the demand and market share of products and services in the forthcoming future.
Technical and operational study is directed to assess the efficient ability of the proposed business initiative.
Project report preparation
It is a deed which defines step by step policies and plans involved in running the business.
Evaluation, Control And Review
The company operates in a self-motivated environment, so it has to monitor and review policies as well as strategies to compete in an existing market.
What does the project report consists of a business plan?
1. Front page
The front/cover page of the project file contains the title of the project, name, address, nature of work so that the person reading the report can quickly contact the entrepreneur if there are any queries of the report.
2. Table of contents
Table of content or index consists of topics covered in the project file along with the page number.
3. Executive summary
After the completion of the project file a brief gist of the project is written in a form of summary.
4. Company information and industry
A detail information of the company is discussed in the project file along with SWOT analysis of the company. This detail information includes the ownership form of the company, which contain the reason for forming into the proposed plan, etc.
1. Technical plan
Technical feasibility of the plant helps in identifying the critical part of the scenario. This report should be underlined. The selection of the product and service that is to be presented should be vindicated.
2. Marketing plan
This plan focus on the industry and market feasibility that is conducted at an former stage. It defines the pricing policy, market research, product to be offered by the company, marketing policy to promote the product, and target customers. This is a detailed plan for tactics ad survey required for marketing of the company.
3. Operations plan
It describes the innovative idea that is involved in the process of production or manufacturing which makes it better or innovative, when compared to existing competitors.
4. Organizational plan
It provides statistics about the administration team who are part of the corporation. It focuses on the technical skills controlled by the employees in the corporation. By way of this type of organizational plan can be decided upon.
5. Project timeline
It includes the visual network diagram, which demonstrates the time duration required for the project and ways of achieving it. The graph shows various activities in the project, which are prepared and the time duration required for the execution of the project.
6. Critical risk and assumption
Various assumption were made through the creation of the company like considering the previous sales forecast, all such assumption are reflected by this report. There can be Various risks involved in the product and kind of service company is planning to offer.
7. Social plan
Benefit of such plan towards the society is described in this plan. It highlights how a company will create employment opportunities and lead to skill development, provision of goods and services, utilization of resources, etc.
8. Exit strategy
It is a negative aspect of the business as usual, a business should be kept as going concern for perpetuity. Still, the company should brief how they would close down the business if the company is not able to make the expected profit, the investors will be keen to know how their investment can be recovered.
9. Financial plan
It is a vital part of the report, which will comprise the brief content of all the sections with monetary terms. It clarifies the financial arrangement of the company, sources through which the company has raised finance, the total expenditure incurred by the company.
10. Conclusion
The report should be concluded on a positive note so that the readers develop a positive image of the report.
Conclusion
Each business needs to have a plan for enticing the investors and to provide the company with a motive. A business plan plays a dynamic role in the success of the business. It contains a detailed plan budget and objective being set for the company.
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