Business plan meaning with example and definition

entrepreneur subject

1. DEVELOPING
BUSINESS PLAN

2. DEFINITION OF A BUSINESS
PLAN
•Abusinessplanis“aformalstatementof
asetofbusinessgoals,thereasonswhythey
arebelievedattainable,andtheplanfor
reachingthosegoals.itmayalsocontain
backgroundinformationaboutthe
organizationorteamattemptingtoreach
thosegoals”.

3. FOCUS OF BUSINESS
PLAN
•Externallyfocusedplanstargetgoalsthat
areimportanttoexternalstakeholders,
particularlyfinancialstakeholders.They
typicallyhavedetailedinformationabout
theorganizationorteamattemptingto
reachthegoals.

4. CATEGORIES OF A
BUSINESS PLAN

5. 1. BUSINESS PLAN FOR
PROFIT
•Typicallyfocusesonfinancial
goals

6. 2. MARKETING PLAN
•Targetschangesinperception
andbrandingasitsprimary

7. 3. PROJECT PLAN
•Describesthegoalsof
aparticularproject

8. 4. BUSINESS PLAN FOR NON-PROFIT
AND GOVERNMENT AGENCY
•Tends to focus on
service goals.

9. 5. OPERATIONAL PLANS
•Describesgoalsofaninternal
organization,workinggroupor
department.

10. CONTENTS OF
BUSINESS PLAN

11. 1. EXECUTIVE SUMMARY
•Itguidesproponentsorinvestorsonthe
overallfeasibilityoftheproposedproject
ataglance.Itsummarizesthemajor
highlightsandfindingsofeachmajor
aspectofstudy.

12. 2. PROJECT BACKGROUND
AND HISTORY
•Itnarratestheprojectconceptualizes,and
detailstheeventsthatledtothestudy.It
alsopresentstheprojectproponents,the
proposednameoftheproject,typeof
businessproposal/project,andtheproject
location.

13. 3. MANAGEMENT AND
PERSONNEL FEASIBILITY
•Itpinpointstheproject’sgeneralto
specificmarketfeasibilitytopics.It
presentsthemarketandananalysisof
past,presentandfuturedemandsupply
situationsfortheparticularproduct(s).

14. 4. PRODUCTION FEASIBILITY
•Thisreferstothemanufacturingaspectsof
theproduct.Itincludesthedetailsofwhat
theproductisandhowtheywillbe
produced/raisedusingproposedlocation,
productionsize(capacity)andlay-out.It
alsolookedintothe

15. 5. FINANCIAL FEASIBILITY
•Itenablestheentrepreneurtoknow
howmuchcapitalizationwillneneeded
tofinancetheprojectandwhowillthe
projectfinanciers.

16. 6. SOCIO ECONOMIC
FEASIBILITY
•Thisisviewingtheprojectsfeasibilityonly
fromthepointofvieworfromthe
standpointof the project’s
proponents/investors.Thispartpresents
theprojects'feasibilityastohowitwillbe
beneficialtootherpeopleandentities.

17. 7. PROJECT IMPLEMENTATION
AND TIMETABLE
•Theseincludethedetailsofallactivitiestobe
consideredduringproject’spre-investmentand
pre-operatingphaseandalsothetimetableof
eachoftheseactivities.Sometimes,thisis
includedInthemanagementandpersonnel
feasibilitytodistinguishpre-operatingfrom
normaloperatingactivities.

18. BUSINESS PLAN

19. TABLE OF CONTENTS
I.Executive Summary
II.Market Analysis
III.Company Description
IV.Organization and Management Structure
V.Marketing and Sales Strategy
VI.Product Description
VII.Production and Operation
VIII.Financial Analysis
IX.Curriculum Vitae
X.Business Exit

20. MARKETING
STRATEGIES

21. LEARNING OUTCOMES
•Describes the marketing Mix (7Ps) in Relation to the
business opportunity:
0.1. Product
0.2. Price
0.3. Promotion
0.4. Place
0.5. Packaging
0.6. Positioning
0.7. People

22. THE 7 PSIN BUSINESS
OPPORTUNITY

23. 1. PRODUCT
•Tobeginwithdevelopthehabitoflookingatthe
productasanoutsidemarketingconsultantbrought
intohelpthecompanydecidewhetherornotit’s
intherightbusinessatthistime.Askcritical
questionssuchas“isthecurrentproductor
service,ormixproductsandservices,appropriate
andsuitableforthemarketandthecustomersof
today?”.

24. •A.wheneverthereisdifficultysellingasmuchofthe
productsorservicesasplanned,thereisaneedto
developthehabitofassessingthebusinesshonestly
andasking,
•B.Comparedtothecompetitors,istheproductor
servicesuperiorinsomesignificantwaystoanything
elseavailable?Ifso,whatisit?Ifnot,coulditbe
developedtoanareaofsuperiority?Shouldthis
productorservicebeofferedatallinthecurrent
marketplace?

25. 2. PRICE
•ThesecondPintheformulaisprice.Developthehabitof
continuallyexaminingandre-examiningthepricesofthe
productsandservicestosellformakingsurethey’restill
appropriatetotherealitiesofcurrentmarket.Sometimesthere
isaneedtolowertheprices.Atothertimes,itmaybe
appropriatetoraisetheprices.Manycompanieshavefound
thattheprofitabilityofcertainproductsorservicesdoesn’t
justifytheamountofeffortandresourcesthatgointo
producingthem.

26. 3. PROMOTION
•Thethirdhabitinmarketingistothinkintermsofpromotionsall
thetime.Promotionincludesallthewaystotellcustomersaboutthe
productsorservicesandhowtomarketandsell.
•Smallchangesinthewaytheproductispromotedandsoldwilllead
todramaticchangesintheresults.Evensmallchangesinthe
advertisingcanleadimmediatelytohighersales.Experienced
copywriterscanoftenincreasetheresponseratefromadvertisingby
500percentbysimplychangingtheheadlineonanadvertisement.

27. 4. PLACE
•ThefourthPinthemarketingmixisthe
placewhretheproductorserviceis
actuallysold.Developthehabitof
reviewingandreflectingupontheexact
locationwherethecustomermeetsthe
salesperson.Sometimeschangeinplacecan
leadtoarapidincreasesales.

28. 5. PACKAGING
•Thefifthelementinthemarketingmixisthepackaging.Develop
thehabitofstandingbackandlookingateveryvisualelementin
thepackagingoftheproductorservicethroughtheeyesofcritical
prospect.
•Withregardtothepackagingofacompany,aproductorservice,
thinkintermsofeverythingthatcustomerseesfromthefirst
momentofcontactwiththecompanyallthewaythroughthe
purchasingprocess.

29. 6. POSITIONING
•ThenextPispositioning.Positioningdevelopsthehabitof
thinkingcontinuallyabouthowtheproductsarepositioned
intheheartsandmindsofyourcustomers.Howdo
customersthinkandtalkabouttheproductsevenifitisnot
present?Howdocustomersthinkandtalkaboutthe
company?Whatpositioningdoesithaveinthemarket,in
termsofthespecificwordspeopleusewhenitisdescribed
andofferedtoothers?

30. 7.PEOPLE
•ThefinalPofthemarketingmixispeople.Developthehabitof
thinkingintermsofthepeopleinsideandoutsideofthebusiness
whoareresponsibleforeveryelementofthesales,marketing
strategies,andactivities.
•itsamazinghowmanyentrepreneursandbusinesspeoplewillwork
extremelyhardthrougheveryelementofthemarketingstrategy
andthemarketingmix,andthenpaylittleattentiontothefactthat
everysingledecisionandpolicyhastobecarriedoutbyaspecific
person,inaspecificway.

31. DEVELOPING A BRAND NAME
•Foranewbusiness,creatingandeffectivelymarketinganewbrand
nameisoneofthemostchallengingaspectsofstartingabusiness.
•Foranewbusiness,creatingandeffectivelymarketinganewbrand
nameisoneofthemostchallengingaspectsofgettingoutofthe
proverbialstartingblocks.
•Choosethewrongnameandcustomershavenoideawhatyour
businessstandsfororwhatitdoes.
•Choosetherightnameandcustomersimmediatelyidentifywith
yourvalueproposition.Itsanimportantstep,solet’sreviewsomeof
thebasics.

32. THE SIGNIFICANCE OF THE BRAND
NAME
•Brandnamewillalwaysbeincrediblyimportant
evenifprogressivebusinessexpertsclaimthat
thesignificanceofbrandnamesisfadingasan
entrepreneur,thereforeitisimportantthatyou
spendaconsiderableamountoftimeandeffort
developingyourbrandname.

33. HOW TO DEVELOP
A BRAND

34. 1. DECIDE WHAT IS GOING
TO BE BRAND
•Is it branding a product, a service, a
company, or an individual?

35. 2. DO THE RESEARCH
•First,findouteverythingthereistoknow
aboutthemarket.Then,findouteverything
thereistoknowabouttheproductorservice

36. 3. POSITION THE
PRODUCT
•Findandwinaplacefortheofferinginthe
marketplaceandinconsumersmindby
providinguniquesolutionstotheproblemor
needsthataren’talreadybeingaddressedby
competingproducts.

37. 4. WRITE THE
DEFINITION
•Thebranddefinitiondescribeswhatis
tobeoffered,whyitisoffered,howthe
offeringisdifferentandbetter,what
uniquebenefitsthatcustomerscan
count.

38. 5. DEVELOP THE NAME,
LOGO & TAGLINE
•Thenameisthekeythatunlocksthe
brandimageinthecustomersmind.