 Dr.
J Vasanthakumari is an executive director of a public limited company. Her
various duties include motivating the employees, conducting orientation and
awareness programmes and imparting self-development training amongst various
other things.
She
has further responsibilities as a Managing Trustee of an NGO. She is a member
of various entrepreneurial organisations and plays an active part in helping
women set up their own business units.
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Business Planning Skill
A business plan describes not only the business concept but
also the infrastructure that needs to be put in place to successfully execute
the business concept.
Components
of a Business Plan
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Business Concept Analysis.
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Feasibility analysis.
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Process or Operational Plan.
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Organization Plan.
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Marketing Plan.
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Financial Plan.
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Growth Plan.
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Contingency Plan.
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Appendix Plan.
1. Business concept and 2. Feasibility analysis has already been explained in
the previous topic on "Market Feasibility Analysis Skill."
We will now see what the other points mean.
3. Process or Operational Plan
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Presents a technical description of your product or service.
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A depiction of how your business will operate.
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Describe your business model - A business model describes the way you are going
to make money with your business.
4. Organisation Plan
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Addresses the legal form of organization - Sole Proprietorship, Partnership,
Private Limited or Public Limited Company.
5. Marketing Plan
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Marketing plan covers information about your customers - how they buy, when,
where and how much. That helps you to structure a marketing strategy to reach
those customers.
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Marketing plan includes your niche in the market, customer's perception of your
company and the tools you plan to use in reaching out to the customers.
6. Financial Plan
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Capital Budgeting - Spending on assets like plan, equipments and office space.
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Budgeting for Operations - Sales Budget, Production Budget, Direct Material
Budget, Direct Labour Budget and Factory Overhead Budget.
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Financial Ratios - Liquidity ratio (helps to understand your company's ability
to meet its short - term obligations and maintain normal operations),
Profitability ratio(with this ratio you try to view profit from the standpoint
of net income,return on investment and return on equity), Leverage ratio (this
measures the level of debt the company maintains).
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Break - Even Analysis - The Break - Even point is the level of production/sales
where the industrial enterprise shall earn neither profits nor incur loss.
7. Growth Plan
Growth plan presents the key strategies for growth in the form of new
products or services, customers, etc. The components of growth plan are as
follows:
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Moving from entrepreneurship to professional management
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Discovering your company's culture.
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Developing a human resource policy.
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Organising for speed and flexibility.
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Organising around teams.
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Taking your company online.
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Finding and retaining good employees.
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Recruiting the right people.
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Placement of the recruited people.
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Recruiting an experienced CEO.
8. Contingency Plan
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Recognize that everything may not go as planned.
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Contingency plan addresses how your company responds to changing market
conditions.
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Plan what you expect to do, if demand for your product is not as strong as
projected.
9.
Appendix Plan
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Contains supplementary information that is important but not vital to the
business plan. For example - Resumes, Job Description, Lease Agreements, Maps,
Letter of Intent, Evidence of Patents, Designs and complete financial
statements.
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