Home Home Suggestions Business Plan Template

Guidelines on Developing an effective Business Plan

1.      What is a Business Plan

a.      It is the face of your business; Functions like a magnet, attracting your clients, investors and strategic partners.

b.      It is a living document; You should review it with every change in external and / or internal factors.

2.      Why does the applicant need a Business Plan

a.      Read the first page of Business Plan Template; explaining the importance of a business plan for any business.

b.      First step for fine tuning your ideas for practical implementation into a functioning business.

c.       Acts as a ‘How to’ guide for running your business.

d.      Helps you map options for best and worst case scenarios.

3.      How to develop a Business Plan

a.      Know your business: Market research, product / service, target customer.

b.      Create your identity: Company/ Business mission, vision.

c.       Structure your thoughts: Write your Business Plan. (Refer to Table of content of Template)

       4.      Key features of a good Business Plan

            Think about the following before and after you’ve written every section:

a.      Description of your project and product. (Refer to Sec II of BPT)

b.      Marketing Plan: Product, customer profile, distribution channel and proposed location, pricing, promotion and advertising. (Refer to Sec III of BPT)

c.       Operational Plan: Production, location, Inventory, Credit, Payables. (Refer to Sec IV of BPT)

d.      Management and Organization: Competitive strengths, Legal form and structure. (Refer to Sec V)

e.      Startup Expenses and Capitalization: Estimating costs of Pre-Operations, Contingencies and unforeseen. (Refer to Sec VI)

f.        Financial Plan: Recommend using professional help for Income Statement, Balance Sheet and Cash flow. Help may be sought from Financial Calculator available on SMEDA website. (Ref to Sec VII)

g.      Appendices: Advice on appending useful written materials to Business Plan. (Refer to Sec VIII)

h.      Refining the Plan: Advice on how to create a plan specifically suited to applicants business. (Refer to Sec IX)

5.      Who will develop a Business Plan

a.      The entrepreneur may use professional help, however it is advisable to DO IT YOURSELF

b.      Technical advice from private sector experts/Govt. institutions, listed on SMEDA website

6.      How SMEDA can help

a.      Provide guidelines and explain how to develop a Business Plan. Refer to a related Pre-feasibility

b.      Refer to government institutions, private sector experts / institutions, secondary resource materials, SMEDA website.