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.