Business Plan Development Worksheet Name of Business Plan

Submitted To: Ms. Poorva Ranjan Submitted By: Class Section Names of Group Members

Business Plan Development Worksheet Contents

Part I Idea Evaluation Phase Part II The Marketing Plan Part III Operations, HR and Legal requirements Part IV The Financial Plan Part V The Community Benefit

Part I

Idea Evaluation Phase

A. Describe your idea in not more than 200 words.

B. The Market/ Industry Analysis:

This section dispassionately describes and outlines the industry and the marketplace in which you will compete. When finished with this section, you and your readers should understand the dynamics, problems, and opportunities driving your industry and marketplace. 1. What are the trends in your industry? Be sure to include your sources of information 2. Who is your typical customer? For consumers discuss things such as age, sex, income, profession, lifestyle, education, family size, etc. For businesses discuss things such as type of business, sales, size, number of employees, number of years in business, etc. 3. Where are your customers located? 4. What is the size of your market? 5. Who are your largest and/or most profitable customers? 6. Who are your competitors? What are their strengths and weaknesses? 7. What is your competitive advantage? How is your business different (or better) from your competitors? Do you offer better quality service, price, or value? Do you have an innovative technology?

C. What will be the name of your business and why? Any punch line?

Part II The Marketing Plan

A. Description of the Business:
1. Name of firm 2. Legal Structure/ How is or will your company be organized (e.g., sole proprietorship, partnership, corporation)? 3. Name of Owners (Anyone with an investment in the firm) 4. Hours of Operation 5. Location (Proposed Location) 6. Date of starting the business (Tentative)

B. The Product/Service Description

1. Describe your business, product, or service: 2. What benefits do you sell? 3. How is your product or service different from current products or services on the market? 4. When was your business started? If you are not currently in business, when do you plan to start? 5. How do you make your product? 6. Describe the major materials or inventory that you will need. 7. Who are your key suppliers? (List name and address) 8. Who are your backup suppliers? (List name and address)

C. Distribution & Sales Strategy

1. How do you distribute your product to your customers? List outlets: Retail, wholesale, phone or mail orders, telemarketing, Internet, personal selling. 2. What are the costs associated with our sales strategy? Which costs are fixed? Which are variable?

D. The Price Strategy

1. How will you price your services or products? 2. What are your selling terms? Are you giving discounts?

E. Advertising and Marketing Strategy:

1. Who will sell your products or services? How? This includes meetings or phone calls by you, sales forces, or reps. 2. How will you promote or advertise your business? Include names and how often you plan to advertise with each media. 3. What promotional marketing material will you develop (ads, catalogs, brochures, flyers, etc.)? Who will help develop these materials? Include a sample if available. 4. Describe any extra customer services (i.e. free delivery, volume discounts, etc.).

Part III Operations, HR and Legal requirements

A. HR and Management (People):
1. Identify the management and key personnel. 2. List the most important qualities that answer the questions Do you have the experience or education in this business to make it work? and 3. "Do you have experience managing people?" 4. Identify the Key Back end and Key Front End Personnels required for your business. Answer each sub question properly Make an Organisational charts with some key posts listed and name the persons among your group members and outsiders whom you want to hire. List the following: o o o o o o o o Board of directors Management advisory board Attorney Accountant Insurance agent Banker Consultant or consultants Mentors and key advisors

B. Operations (Process):
1. Describe the manufacturing process of the product or service in form of a detailed Flow Chart 2. Describe the Delivery process in a Flowchart 3. If your business has after sales services or maintenance service also describe it in flowchart

C. Inventory
1. 2. 3. 4. 5.

What kind of inventory will you keep: raw materials, supplies, finished goods? Average value in stock (i.e., what is your inventory investment)? Rate of turnover and how this compares to the industry averages? Seasonal buildups? Lead-time for ordering?

D. Suppliers
1. What are the major items of equipment used in your business? 2. Where will you buy the raw materials required? Who are the major suppliers in your city or country? Identify key suppliers: o Names and addresses o Type and amount of inventory furnished 3. Who will be your backup suppliers? Credit and delivery policies

1. 2. 3. 4.

History and reliability Should you have more than one supplier for critical items (as a backup)? Do you expect shortages or short-term delivery problems? Are supply costs steady or fluctuating? If fluctuating, how would you deal with changing costs?

E. Facilities:
1. Describe your business location including the building, physical features, age, dimensions, parking, etc. 2. Do you lease or own? What is the land/ rent rate in that locality. 3. Why did you choose this location? 4. What renovations are needed? Get quotes. 5. Where will you buy your furniture from? How much furniture and IT set up you need in your business 6. Where will you source the above items?

The Legal Requirements:

1. Are there licensing requirements? Name and list the license that you need to start the business. Also mention how you will obtain those licenses? 2. Are there industry restrictions or regulations? 3. Any Permits required? 4. Any Copyright, Trademarks, Patents need to be created for your business? Or using others Copyright, Trademarks, Patents? If Yes how is the fees and the procedure for it? * Attach any other document which is required to support your business plan. Attach visiting cards of the people that you have consulted

Part IV The Financial Plan

You will have many startup expenses before you even begin operating your business. Its important to estimate these expenses accurately and then to plan where you will get sufficient capital. This is a research project, and the more thorough your research efforts, the less chance that you will leave out important expenses or underestimate them. Even with the best of research, however, opening a new business has a way of costing more than you anticipate. There are two ways to make allowances for surprise expenses. The first is to add a little padding to each item in the budget. The problem with that approach, however, is that it destroys the accuracy of your carefully wrought plan. The second approach is to add a separate line item, called contingencies, to account for the unforeseeable. This is the approach we recommend. Talk to others who have started similar businesses to get a good idea of how much to allow for contingencies. If you cannot get good information, we recommend a rule of thumb that contingencies should equal at least 20 percent of the total of all other startup expenses. Explain your research and how you arrived at your forecasts of expenses. Give sources, amounts, and terms of proposed loans. Also explain in detail how much will be contributed by each investor and what percent ownership each will have. For Raising Capital
A. For Bankers: Bankers want assurance of orderly repayment. If you intend

using this plan to present to lenders, include:

1. Amount of loan you need to start your business

2. How the funds will be used 3. What this will accomplishhow will it make the business stronger? 4. Requested repayment terms (number of years to repay). You will probably not have much negotiating room on interest rate but may be able to negotiate a longer repayment term, which will help cash flow. 5. Collateral offered, and a list of all existing liens against collateral
B. For Investors: Investors have a different perspective. They are looking for

dramatic growth, and they expect to share in the rewards: 1. Funds needed short-term

2. Funds needed in two to five years 3. How the company will use the funds, and what this will accomplish for growth. 4. Estimated return on investment 5. Exit strategy for investors (buyback, sale, or IPO) 6. Percent of ownership that you will give up to investors 7. Milestones or conditions that you will accept 8. Financial reporting to be provided 9. Involvement of investors on the board or in management

Part V The Community Benefit

Explain how your business will contribute to the growth and up-liftment of the society. The positive impact of starting a business is generating employment. How else can your business bring a change in the current scenario i.e., Eco friendly, Benefit to particular set of underprivileged people etc