Unit I-Business Planning and Business Plan
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Introduction to GITAM Dr. I B Raju School of Business
Welcome message
Institution focus: Entrepreneurship
Status: GITAM DEEMED TO BE UNIVERSITY
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Business Planning
Concept of Business Planning: iDeA 45% SALE, 25% TEAM
Current relevance and operations
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Definition of Business Plan
A formal written expression of entrepreneurial vision
Describes strategy and operations of the venture
Importance: resource allocation, problem preparation
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Key Elements of a Business Plan
Details about products, services, costs, and profits
Reassures sustainability of the business idea
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Introduction to Business Plan
Alternate names based on audience
Examples: "Loan Proposal" for bankers, "Investment Prospectus" for venture capital
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Business Plan Justification
A process providing clear evidence and reasons
Increases success probability, acts as a blueprint and feasibility study
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Need for a Sustainable Business Plan
Human activity and climate change
Need for businesses to adapt
Integration of sustainability in planning and operations
Focus on the 3 P's: People, Profits, Planet
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Consideration of Product Lifecycle
Post-consumption expectations, e.g. electronic waste
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Benefits of Writing a Business Plan
Critical and objective venture evaluation
Competitive and financial analysis scrutiny
Development of measurable objectives and benchmarks
Communication tool for investors
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Purpose of a Business Plan
Serves as a roadmap for the organization
Functions as a communication tool, operating tool, and analytical tool
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Audience of the Business Plan
Potential readers include:
Venture capitalists
Bankers
Angel investors
Customers and consultants
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Perspectives in Business Plan Preparation
Entrepreneur's viewpoint: in-depth knowledge of venture
Customer viewpoint: focus on market benefits
Investor viewpoint: emphasis on financial projections
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Key Aspects in Business Plan Writing
Detailed appendices for contracts and commitments
Non-disclosure agreements highlighted
Executive summary placement
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Tips for Presenting Business Plan
Know your audience
Storytelling approach
Positivity and optimism in presentation
Clarity in assumptions and real numbers
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Business Plan Basics
Components include:
Elevator Pitch
Executive Summary
Financial and Operational Plans
Appendices
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Executive Summary Key Aspects
Clear, catchy, and precise
Nature of business and competitive advantage
Target market and funding requirements
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Executive Summary Components
Description of business and management profile
Financial requirements and flexible funding options
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Introduction to Business Plan
Brief competitive advantages
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Nature of Executive Summary
Mini-business plan highlighting crucial points
Engaging to entice further reading
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Company Overview in Executive Summary
Identify company structure and market served
Potential market trends and growth opportunities
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Management Background
Profiles of top management team
Financial requirements and expected outcomes
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Importance in a Plan
Emphasis on cash flow and management acumen
Continuous improvement focus
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Marketing Plan Overview
Components:
Marketing mix, pricing, and promotion
Industry and competitor analysis
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Target Market Considerations in Marketing Plan
Description of niche market and supporting documents
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Marketing Plan Growth Projections
Market share capture rationale
Steps to retain market share
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Operations Plan Components
Manufacturing process and supplier details
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Product or Service Stage Analysis
Rollout strategies and unique competitive advantages
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Technological Considerations
Status of required technologies and their advancement
Anticipated production and control systems
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Management and Organizational Structure
Roles, responsibilities, and hiring plans
Key employee qualifications and skills
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Financial Plan Overview
Snapshot of funds inflow and outflow
Liquidity management strategies
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Financial Plan Components
Pro Forma Income Statement
Cash Flow and Balance Sheets
Break-even analysis
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Financial Items Explained
Income statement: projected profit analysis
Cash flow: expected cash availability assessment
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Balance Sheet and Break-even Analysis
Overview of assets and liabilities
Break-even formula explanation
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Sources of Funding
Different funding options presented
Types: debt, equity, and grants
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Risk Management in Planning
Identify and strategize risks
Conduct SWOT analysis for better planning
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Resources for Business Planning
Recommended videos on business plan writing
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Conclusion
Closing thank you message from GITAM School of Business