The forthcoming internal test on Entrepreneurship Management will be

common to all the students of above three courses and will be based on
the following portions of the syllabus:

1. Basic Concepts - the enterprise, the entrepreneurships, advantages

of promoting entrepreneurship to the society and the nation.

2. Personality, Mindset and Profile of an Entrepreneur, the entrepreneurial

process and other related aspects as discussed in the class.

3. Pre Investment Studies for New Ventures, Technical Feasibility,

Financial Viability, Economic Desirability, Business Plan Document -
Contents & Preparation etc

For (1) and (3) of the above - you may depend on what has ben
discussed in the class. Additionally, you may refer any text book or can
access internet. For (2) - the attached power point presentations may be
of help. I am also attaching one attachment on Business Plan Contents
which you may find useful. In all there are 4 attachments to this mail.

Contents of a business plan

Introduction
Executive summary
• What is the business?
• What is the market?
• What is the potential for the business?
• Forecast profit figures
• Funding requirements
• Prospects for the investor/ lender
Description of the business
What is the business?
 • A brief description of the business idea and
why it should be a success
• History of the enterprise and its ownership
• Information about the entrepreneur’s
qualifications, experience and financial status
• Location
Products and services
• A description of the product and what it does
• An explanation of ways in which the product
is distinctive and unique
• Analysis of the competition
• How the product will be developed and what
new products are being considered as
replacements
• Intangible assets & protection (e.g.
copyright, trade marks)
The market
• Size and expected growth of the market
• Analysis of market by segments
• Identification of target segments
• Competitors - who they are, ownership, size,
market share, likely response to the
challenge
• Customers (existing & potential) - who they
are, how they buy, why they buy
• Distribution channels
Situational audit (where are we now?)
This involves data collection and analysis
Purpose of data collection and analysis:
• Determine which opportunities to pursue
• Identify SWOT
• Identify competitive advantages
• Provide a background for the formulation of
strategy
Main analytical techniques:
• PEST/ PESTLE analysis
• SWOT analysis
• Competitor analysis
• Marketing audit
Statement of aims and objectives (where do
we want to go?)
• A statement of what the business should
achieve over a five year period
• Aims should be expressed in terms of
hierarchy of objectives becoming
progressively more detailed and specific
• Vision - what the organisation will be like in
the future
• Mission statement - a statement of the
overall purpose and aims
• SMART Objectives - quantitative goals.
• Functional objectives - objectives for the
functional areas
Strategy and tactics
• How are we to get there?
 • Strategy is the broad approach to the
achievement of objectives
• Summarises how to fulfil the objectives
• Tactics refer to the details of the strategy
e.g. the promotional mix
• The detail will be contained in programmes
and budgets
Marketing: key questions to be answered
• Who are our customers?
• Who are our competitors?
• What is the size and growth rate of the
market?
• How is the market segmented?
• What is special about our product or service?
• What are our competitive advantages?
• What is our marketing strategy?
Marketing plan
• Market research
• Segmentation and targeting
• Detailed outline of the product or service
• Unique selling points
• Chosen pricing strategy
• Promotional plans
• Distribution strategy (including online)
• Customer service strategy
Operations plan
• Physical location
• The production process
 • Facilities
• Equipment
• Scale & location of operations
• Capacity - potential and effective
• ICT strategy
• Engineering and design support
• Materials required
• Inventory levels and stock control plans
• Purchasing arrangements
• Sources of supply of key resources
• Quality control plans
• Staffing requirements
Management and organisation
• Organisational chart
• Details of senior management
• Corporate governance
• Staffing requirements
• Key personnel
• Recruitment and selection
• Training
• Rewards (financial & non-financial)
• Labour relations
• Employment and related costs
Forecasts in the business plan
• Sales forecast
• Forecast profit and loss account (income
statement)
• Cash flow forecast (cash budget)
 • In each case this should be a month by
month forecast for a minimum of two years
• Forecast balance sheet for each of the first
two years
• The assumptions behind the forecast should
also be included
Financial data
• Investment appraisal - payback and
discounted cash flow
• Break even analysis
• Evaluation criteria for performance review
• Ratio analysis: net profit margin, Gross profit
margin , return on capital employed, liquidity
and solvency analysis.
Financing required
• Details of capital required and uses
• The plan must include details of the external
finance required
• This will be equal to the finance required less
finance raise internally from existing owners
and from operations
• The plan will outline how it is proposed to
raise the finance
• Sources of finance: Short, medium and long
term; Debt v equity