The business plan: Creative and starting the venture:

Learning objectives: 1) To define what the business plan is, who prepare it, who reads it, and how it is evaluated -Business plan ( Game plan/Road map) It is a writer document prepared by entrepreneur integrating functional plans as marketing , finance, manufacturing and HR at the start of a new venture. It addresses short term and long tern decision making for the fist 3 years of operation (i) External factor- new regulations, competition (ii) Internal factors control over manufacturing, marketing Through assessment the entrepreneur decides if /she needs t hire a consultant 2) To understand the scope and value of the business plan to investors, lenders, employees and customer. It must try to satisfy the needs of everyone: whereas in the actual marketplace the entrepreneur product will be trying to meet the needs of selected groups of customers. 3 perspective : (I ) Entrepreneur Best understanding of creativity and technology involved in the new venture. (i) Marketing perspective to view through the eyes of their customers (ii) Eyes of the investors financial projections are required It helps determine the viability of the venture in a designated market. It provides guidance to the entrepreneur in organizing his or her planning activities. It serves as an important tool helping to obtain financing. The process also provides a self- assessment by the entrepreneur. If the entrepreneur realizes that the obstacles cant be overcome the venture may be terminated.

Evaluate plan- Potential lenders and investors.

First draft for his/her personal viewpoint. Changes are made according to who will read the plan:(i) (ii) Suppliers. Potential suppliers of capital.

Presenting the plan (Elevator plan)

To firstly present it orally this will help a no of firms or individual who would immediately decide they like the plan and request further negotiations, leading to a final investment decision. Information needs Marketing Information. (i) (ii) (iii) (iv) (v) (vi) (vii) General environment and demographic trends National food industry trends. Local environment and demographic trends Local food industry trends Local competition strengths and weaknesses. Marketing Positioning Market Objectives. Operations information needs. Depends on the nature of the business. Entrepreneur may need information on the fallowing (i) (ii) (iii) (iv) (v) (vi) (vii) Location Manufacturing operations. Raw material. Equipment. Labor skills. Space Overhead. Financial information needs: Source of funding investment Insurance Flow to recover loss. Expenses.

Using the internet as resource tools Writing the business plan Time depends on the experience and knowledge as well as the purpose it is intended to serve. It should be comprehensive Introductory page- the title or cover page that provides a brief summary. Important for investors to know how much investment is needed. Executive summary- This section of the business plan is prepared after the total is written. Strong growth plan expected then IPO should also include an exit strategy.

Environment and Industry analysis

Environment: Assessment of external incontrollable variables that may impact the business plan. Economy Culture Technology Legal concerns Industry: Reviews industry trends and competitive strategies. Description of venture Provides complete overview of products, services and operations of new venture. Production plan Details of how products will be manufactured. Operational Plan. Goes beyond manufacturing process and describes the flow of goods and services from production to the customer.

Marketing plan: Describes market conditions and strategy related to how products and services will be distributed, priced and promoted. Organization plan: Describe form of ownership and lines of authority to meet business plan goals and objectives. Financial plan: Projections of key financial data that determine economic feasibility and necessary financial investment commitment.

Using and implementing the business plan

(i) (ii) The business plan is designed to guide the enterprenuer through the first year of operations. Measuring plan progress. Inventory control. Production control. Quality control. Sales control. Disbursements control money paid off. All bills should be viewed to determine how much is being disbursed. Updating the plan

External: Economy, customers, new tech or competations. Internal: Increase salary of employees, new targets, changes in the company, industry and market.

Why some business fail

Goals set by enterprenuer are unreasonable Goals are not mearurable. Not made a total commitment. No experience. No sense of potential threats or weakness.