Session Outline

• Defining a Business Plan

Business Plan Development
Business Plan Development- By Channa Gajanayaka
• Reasons to have a Business Plan
• Business Plan development process
• Components of a Business Plan
• Pitching a Business
• Post planning activities and Implementation
• Reasons for Business Plan failures
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Defining a Business Plan

Business Difference between
Business Plan Strategic Plan

Plan

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Defining a Business Plan Cont..

Business Plan
As a Road Map
NEW EXISTING
Business Business

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 Reasons to have a Business Plan Business Startup Process

Internal External 1. Identification of opportunities

2. Generating business ideas/ developing concepts

IDEA
Reasons Reasons 3. Screening the business ideas
4. Ranking the business ideas and selecting the most feasible one
5. Developing a business plan writing checklist

PLAN
6. Developing/ writing the business plan
7. Conducting a pre-feasibility analysis

IMPLEMENT
8. Developing implementation checklist/s
9. Implementation
10. Follow up

CONTROL
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1. Opportunity Identification Defining an Opportunity

• Identifying an opportunity
• Sources of opportunities
Opportunity is a favourable
• Factors that influence to identify opportunities
set of circumstances that
creates a need for a new
product, or business.
-Barringer & Irelan (2010)

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Sources of Opportunities
PROBLEMS
TRENDS
Availability of
Entrepreneurs recognize RESOURSES
opportunities and turn them
in to successful businesses.

Industry ,Market & Sudden

GAPS CHANGES
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Gajanayaka

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 Factors that influence to Identify 2. Idea Generation
Opportunities
• Identifying an idea
• Idea generation techniques
• Examples

UNLOCK THE
POTENTIAL

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Defining an Idea An Opportunity Vs an Idea

A concept that can be
used to create a value
BUSINESS A critical milestone in the

IDEA
process of founding a
business
Every successful business
has started as someone’s
idea http://www.dengue.health.gov.lk/
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Idea Generation Techniques

•Brainstorming
•Focus Group
•Search and Research
•Self Assessment
•SCAMPER(Substitute, Combine, Adapt, Modify, Put to another use,
Eliminate, Reverse)
•Attribute Listing & Morphological Analysis ONLINE TAILORING
•Forced Relationships
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PLAN YOUR KITCHEN IN 3D

CUSTOMIZE YOUR RIDE

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Business Plan Development- By Channa Gajanayaka 21 Freemium Models Business Plan Development- By Channa Gajanayaka 22

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 Activity

Generate 20 ideas.
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3. Business Idea Screening Idea Screening

•Identifying the concept Once business ideas were generated, they can
•Reasons for screening business ideas be assessed to find out the feasible ideas and
•Business idea screening techniques further, those ideas can be ranked from the
•Types of screenings most feasible ideas to least.

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Reasons for Screening Business Ideas Business Idea Screening Techniques

To find the •Qualitative & Quantitative
Feasibility •Financial & Non Financial

Strength of the Idea

Marketing Feasibility
Operational Feasibility
Financial Feasibility
Management Feasibility
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 Types of Screenings Basic / Primary Screening
It provides a mechanism for quick assessment of the
business ideas. Critical areas of the business idea can
•Basic or Primary Screening
SCREENING
Feasibility
be taken in to this assessment.
•Comprehensive Screening

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Comprehensive Screening 4. Ranking the Screened Ideas

Once you have built the ideas, they can be referred
to the second or comprehensive screening. This is a
more stringent screening that can be used to identify Now ideas
the best or most feasible idea. can be
This requires deep insights than basic screening.
Researches, surveys, deep analysis of secondary data Ranked.!
etc. are needed.
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5 | 6. Business Plan Development

•Business Plan development checklist
•Components of a Business Plan
•Developing the Business Plan
Activity

Identify your top 10 business ideas.

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 Business Plan Development Checklist Components of a Business Plan
•Executive Summary
•General Information of the Business
A Checklist •Marketing Plan
•Operational Plan
WHAT & WHY
•Management and Administration Plan
•Financial Plan
•Annexure
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Executive Summary General Information of the Business

•Briefly introduce the business •Name
•Briefly explain the significance and the uniqueness •Emblem
•State the essence of Marketing Plan, Operational Plan, •Vision statement
Management Plan and Finance Plan •Mission statement
•Purpose of the business plan •Values
State whether your plan is for internal use only or not and whether it •Legal structure of the business
is for seeking funds or not
If you are seeking funds, specifically point out that purpose; Ex: for a •Short description about the business
lender, for angels or for a venture capitalists etc. [Industry, scope, product/s | service/s]

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General Information of the Business cont. General Information of the Business cont.
•Profile of the founder/s •Contact information
•Board of management and structure
[Address, contact numbers, email address, social media
•Name and qualifications of secretaries, auditors, consultants
contacts, web]
•Official banker/s
•Uniqueness and special capabilities of the business and •Information about the branches, show rooms,
management networks etc.
•Intellectual properties (if any)
•Achievements (if any) •Map of the business location
•History (if any) [Attach a Google map with enough directions]

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 Marketing Plan Marketing Plan cont.
•Assessing the marketing environment •Conducting marketing research and forecasting
demand
•Goals, objectives and overall marketing strategy •BEP analysis
•Product •Analyzing consumer markets and Business markets
•Pricing and pricing strategies •Market segmentation and targeting
•Creating brand equity and brand positioning
•Delivering customer value •Analyzing the competition
•Communicating the value •Managing customer relationships

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Marketing Plan cont. Operational Plan

• Nature of the coordination among other business •Corporate goals and operational goals
functions and departments.
•Marketing staff and related cost •Corporate strategies and overall operational
•Marketing supply chain strategies
•Action plans •Competitive dimensions- Operational
•Controlling plans Cost or Price, Quality, Delivery speed, Delivery reliability, Coping with
•Required assets and related cost changes in demand, Flexibility and new product development speed, Other
product specific criteria (Ex: Technical support, superior after sales support
•Total marketing cost

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Operational Plan cont. Operational Plan cont.

•Product design and development •Facility location strategies
•Manufacturing process selection and design •Capacity planning
•Job Design •Material requirement planning and inventory
•Selecting a Location control
•Determine the work methods •Managing for productivity and quality
•Production planning •Strategies for operations reengineering
•Developing/ purchasing machineries, tools, equipments •Supply chain management
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 Operational Plan cont. Operational Plan cont.
•Operational action plans For service businesses
•Nature of the service (Classification of operations)
•Total operational cost •Service Design and delivery process
•Analysis the cost of products – Service Facilities
– Blueprint
• Variance analysis and controlling plans – Services cape
– Waiting line management
•Managing service quality
•Service recovery and complaint handling
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Management & Administration Plan Management & Administration Plan cont.

•Mission •Strengths, weaknesses, opportunities and threats-
Managerial feasibility analysis and justifications
•Corporate Goals
•Policies, procedures, practices of the organization
•Strategic Objectives
(In general management and administration
•Corporate strategies perspective)
•Management structure of the organization •Summary profiles of Secretaries, Auditors,
•Description about the key positions of the organization Consultants etc.
Job title, task/duties, and responsibilities at glance •Human Resource Management functions
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Management & Administration Plan cont. Financial Plan

•Decision making, meetings, communication & other
coordinating activities •Cash flows
– Initial Cash flow
•Managing growth and development goals and strategies • Startup cost (Land, Building, furniture etc.)
•Activity plans • Working capital (WC)requirement
– Operational Cash flow
•Assets and related cost
• Income
•Staff and related cost • expense
•Total management and administration cost • WC change
– Terminal Cash flow
•Controlling plans • Scrap
•Nature of the coordination among other business functions • Release of WC
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 Financial Plan cont. Financial Plan cont.
•Funding •Other areas of concern
– Equity/ Debt/Mix – Assessment of financial viability through financial
– Cost of funds statements analysis.
•Projected Financial Statements – Analysis of tax concessions etc.
– Projected manufacturing and trade account
– Variance analysis and financial controlling.
– Projected income statement
– Projected statement of financial position
– Projected cash flow statement

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Supportive Documents and Annexure 7. Conducting a Pre-feasibility Analysis

•Personal resumes (Work history, educational background,
professional affiliations, and special skills and proof etc.) •Activation of Prototypes or trial
•Owner’s financial statements productions
•Trial servicing
•Agreements •In the day of life research
•Contracts •Other pre or test marketing activities
•Research or Survey reports / details analysis •Identifying possible
changes/deviations or realities of
•Other legal documents (Articles of incorporations, plans
partnership agreements, licenses, copy rights,
trademarks, patents,
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A pitch typically takes

the form of an
entrepreneur or group
BUSINESS of entrepreneurs
PITCHING presenting or
describing their ideas
to prospective
investors.
Source: bplans.co.uk Contents of a Pitch
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 8. Developing Implementation Checklist/s
Identifying and list down all the activities to be taken
with the implementation, based on the relevant
action or activity plans.

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9. Implementation
Before launching the business. Launching the venture and starting the activities as
•Registration formalities planned and with the outcomes of the pre feasibility
•Obtaining the licenses, certifications analysis.
•Hiring managers and employees (If you need and planned)
•Setup the machines, tools, equipments and the process
•Other post planning , pre implementation activities

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10. Follow-up Reasons for Planning Failures

Monitoring planned activities and realities, •Based on irrational assumptions
•Used inaccurate or inadequate information for planning
identifying and taking corrective actions for the poor
•Narrowed down perspectives
performing areas or deviations if any. •Unexpected environmental changes
•Lack of support by other parties to implement plans
•Lack of communication of plan to others
•No timely evaluations
•Poor coordination
•Fear and poor willingness to change (Resistance to change)
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 End of the Session.
Thank You.!
Business Plan Development
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