Gitarattan International Business School, New Delhi

Academic Circular No 05/2014

31
th
July, 2014

ENTREPRENEURSHIP DEVELOPMENT: BUSINESS PLAN DEVELOPMENT


Objective

1. To understand the conceptual and practical aspects of being an entrepreneur at the
micro and macro levels.
2. To give an exposure to participants of current issues, concerns, dilemmas in dealing
entrepreneurial ventures.
3. To develop skills that may contribute to entrepreneurial behaviour.
4. To generate innovative ideas to satisfy and assess the opportunities and ideas.
5. To use all available sources and resources to come up with the best possible solution
and plan the venture thoroughly using as many available tools as possible.

It will facilitate the students to carryout research work in a team and present their learning
about an industry in cogent and comprehensive manner.

It will also facilitate students to become an entrepreneur.
Methodology
For carrying out the Industry Analysis following procedure is to be followed:
(a) Each class shall be divided into the group of 6 students and each group shall
be given a specific Idea for developing Business Plan.

(b) Each group is to submit a written Business Plan comprising of 25-30 typed on
A-4 size pages, one sided with proper references of secondary data sources.
The Report must contain distribution of the work done by each student.

(c) Last date of submission of the completed Report shall be the Saturday of
5
th
Week.

(d) Each Team is to present its Business Plan commencing from Sixth Week
onwards for the duration of 20 minutes during the classes of ESBM subject.
Two presentations per class are to be conducted.

(e) The Template covering the scope of Business Plan is attached as Appendix-A.
Students are free to add other dimensions in their Business Plan Report but
MUST cover aspects which are given in the Appendix.

(f) Each group is to present the Business Plan from 6
th
Week onwards as per the
notified schedule before the class.
(g) First two teams from each class shall participate in Business Plan
Competition to be conducted in 13
th
Week.
Evaluation
The evaluation of the Business Plan shall have two components (each student shall be
assessed independently), viz.,
(a) Business Plan : 30 marks
(b) Presentation : 20 marks
The marks shall be accounted for against the paper of ESBM (MS 207). Weight factor for
internal assessment for Business Plan & Presentation shall be 10.
The respective ESBM Faculty shall guide the students and evaluate the students along with
Class Co-ordinator.


(Dr S Chaturvedi)
Director

Appendix-A
Business Plan Template

S. No.
Issues to be covered in the Business Plan
1 Executive Summary
It shall comprise following aspects (not exceeding three pages):

a) Company Name, Address and Phone numbers
b) Name, phone numbers of all key people
c) Brief description of business, its products and services, and
customer problems they solve
d) Brief overview of the market for your product and services
e) Brief overview of the Strategies that will make your firm a
success
f) Brief description of managerial and technical experience of key
people
g) Brief statement of financial request and how the money will be
used
h) Charts and tables showing highlights of financial forecast.


2 Vision and Mission Statement
a) Entrepreneurs vision for the company
b) Company goals and objectives
i. Operational
ii. Financial
iii. What business are we in?
iv. Values and principles on which the business stands
v. What makes the business unique? What is source of competitive
advantage?

3 Description of Management Team

a) Form of ownership chosen and reasoning
b) Company structure ( organization chart)
c) Decision making authority
d) Compensation and benefits package
e) Describe their responsibilities and abilities.
f) Project their salaries.

4 Company History ( For existing Business only)

a) Company founding
b) Promoters and Shareholders
c) Financial and operation highlights
d) Significant achievements


5 Business and Industry Profile
a) Industry analysis
i. Industry background and overview
ii. Significant trends
iii. Growth rate
iv. Key success factors in the Industry
b) Outlook for the future stages of growth ( Start-up, growth and
maturity)
c) Major players in the market
d) Market size
e) The gap in the market

6 Competitor Analysis
a) Existing Competitors
i. Who are they? Create a complete competitive profile
matrix
ii. Strength
iii. Weakness
b) Potential Competitors
i. Profile of key players (company size, turnover, profitability etc)
and their market share
ii. Impact on your business if they enter
iii. What are the competing products and services?
iv. Advantages and disadvantages of the competitors offerings

7 Development of Business Strategies
a) Desired image and position in market
b) SWOT analysis
i. Strength
ii. Weakness
iii. Opportunities
iv. Threats

8 Products / Services Proposal

a) Description
i. Product or service features
ii. Customers benefits
iii. Warranties and guarantees
iv. Uniqueness
b) Patent or Trademark protection
c) Description of production process ( if applicable)
i. Raw materials and key suppliers
ii. Costs
iii. Benefits and Features
iv. Unique selling points
v. Advantages to customers
vi. Future developments
vii. Future product / service offering

9 Marketing Plan

a) Target Market
i. Complete demographic profile
ii. Other significant customer characteristics
iii. Size of each market segment
iv. Characteristics of potential customers in each
segment
b) Customers motivation to buy
c) Market size and trends
i. How large is market ?
ii. Is it growing or shrinking? How fast?
d). Advertising and promotion
i. Media used- Reader, viewer and listener profile
ii. Advertising where, when, how and to whom
iii. Media cost
iv. Frequency of usage
v. Plan for generating publicity
e) Pricing
i. Cost variable- Fixed and variable
ii. Desired Image in market
iii. Comparison against competitors prices
f) Distribution strategy
a) Channel of distribution
b) Sales techniques and incentives

Operation Plan

a) Location
i. Demographic analysis of location vs target
customer profile
ii. Logistics
iii. Lease or rental rates
iv. Labour need and supply
v. Wages rate
vi. Materials required
vii. Customer availability

b) Layout
i. Size requirements
ii. Layout Plan
c) Key managers and employees
i. Their background
ii. Experience, Skills, and know- how they bring to
company
d) Premises and Equipment
e) Production facilities
f) Costs involved
g) Suppliers

11 Financial Plan

a) Capital required
b) Sources of funds
i. Bank loans
ii. Relatives and friends
iii. Grants or loans from other agencies
iv. Promoters funds etc.
c) Use of funds
d) Repayments or cash out schedules
e) Projected revenue
f) Timetable for implementing plan and launching the business
g) Financial Statements
i. Income statement
ii. Balance sheet
iii. Cash flow statement
iv. Break even analysis
v. Ratio analysis with comparison to industry standards.