Entrepreneurship & Small Business Management (ESBM)-MSH-1109Tutor: Mayank Choubisa (Guest Faculty)Birla Institute of Technology (Mesra), Jaipur Campus

Getting StartedPreparing a Business Plan

Lecture Outline

What to put in the business plan Getting started Government and non-Government support

for business

The Business Plan

A sales tool To attract investors or new business partners

Strategic document and action plan Defines the company Sets out objectives Identifies priorities

Content of the Plan Write for your audience Good presentation Ideas expressed clearly and concisely Avoid too many management/technical jargons Be realistic – not overly optimistic Executive summary should entice the reader Highlight the skills and talents of the team

Preparation

Goals Route to market Finance Premises Legal format

Legal Format

Sole trader Partnership Limited Company

Register with Companies House Off the shelf company

Franchise

Essential Areas to Cover in the Business Plan

Executive summary The business concept Product or service The market and competition Management Business operations Financial projections Marketing strategy Bid for finance

Executive Summary

Includes the key elements from the plan Should attract interest Maximum length: 2 pages (1000 words) Often written last

The Business Concept

Introduce the nature of the business Include vision and mission statements

Delineates the focus of the business States the aims of the business

The Product or Service

The product or service What makes it different? What value does it offer? How will it be delivered? What are the planned developments Protection by patent?

For existing businesses Current and planned products History of the business

Market and Competition Define your market

Industry sector, geographic scope Market size

Focus on your target segments How large is each segment? What is your likely market share? What are the trends?

Outline the principal competitors Products/services Advantages/disadvantages compared to you

Management Demonstrate qualities to turn the Plan into reality The entrepreneurial team

Education Business experience Key skills and talents

Other members of the management team Define responsibilities Recruitment Training

Business Operations

Analyse the workforce in total numbers and by task/department

What premises does the business need? What production facilities are needed? What management information systems

are needed? Are there any regulatory standards which

must be met?

Financial Information The funding request Financial statements ~ historical Forecasts

Profit and loss statements Cash flow Balance sheets for 3 to 5 years

Clearly state the assumptions behind the forecasts

What-if scenarios

Marketing Strategy

How will you position your product/service in the marketplace?

Which markets are you going to serve now and where do you want to be in the future

Overview of the key aspects of the marketing mix

Bid for Finance

What is the money for? How much will you be investing yourself? What amount do you need? When do you need it? How and when will you repay it? What security (if any) can you offer?

Appendices

Detailed analyses should be in an appendix and not in the Plan

Items which can go in an appendix: SWOT analysis Market research results Financial data

Getting Started

Business Start-up

Start-up ~ how long will it take?

Delays Finding customers Finding suppliers and distributors Finding business premises Building work Recruitment Research and development Raising finance

The Start-up Obstacle Course

Everything takes longer than planned Gaining market credibility Forecasts are rarely accurate Avoid profit margins being squeezed Supplier relationships Getting paid Managing people and building a team Fire-fighting

Employing Staff

Employment law National minimum wage The Working Time Directive Fairness at Work Legislation

Ensure do not discriminate: race, sex, marital status or disability

Pay as You Earn and National Insurance Employer’s Liability Insurance

Regulation Register for VAT (Refer Current Regulations) Employing staff

Business Link guide New Employer’s Starter Pack

Self employed: Inform Inland Rev (NI contributions): Class 2 + 4 NI

Limited Co: Set up PAYE scheme Inform local Inland Revenue office re Corp tax

Health and Safety May have to register with HSE or local authority

Support Agencies

Business Links Banks Chambers of Commerce Small Business Federation Institute of Small Business Affairs Institute of Directors

Websites nasbic.org http://business.gov.in www.cmie.com www.new-ventures.org/center/new-ventures-india www.ibef.org/industry www.bizTradeShows.com www.researchandmarkets.com www.statisticsofindia.com www.securities.com www.franchiseopportunities.com www.indianindustryprofiles.com http://msme.gov.in & http://www.laghu-udyog.com www.ediindia.org and many many more…….