INTERNATIONAL AGRI-BUSINESS

MANAGEMENT INSTITUTE
ANAND AGRICULTURAL UNIVERSITY
ANAND

Business Plan

Prepared By: Guided By :

Pargi Anshu S. Dr. Dilip Rasiklal Vahoniya
(Reg. No. : 2040623020) Assistant Professor & Head,
Hariom Dubey Dept. of Agri-Entrepreneurship
(Reg. No. : 2040623040) and Project Management,
2nd Sem. MBA-ABM IABMI, AAU, Anand. 1
 What is Business Plan?
• A business plan is the formal written expression of the
entrepreneurial vision, describing the strategy and
operations of the proposed venture.

• A business plan communicates the founder’s vision about

the business and gives a blueprint about the strategy,
resources and people requirement for a venture.

• A business plan is any plan that works for a business to look

ahead, allocate resources, focus on key points and prepare
for problems and opportunities.
 IMPORTANCE OF BUSINESS PLAN

• The business plan is a valuable document for the entrepreneur, potential

investors and even for the employees. The business plan is important to
these people due to the following reasons:

It helps determine the viability of the venture in a target market.

It guides the entrepreneur in starting the enterprise.

The thinking involved in the preparation of the business plan makes the

entrepreneur aware of the issues that could impede the venture’s success.

It serves as a guide to investors and thereby helps in obtaining finance.

 Writing the business plan forces the founders to think about all
aspects of the venture.
 A clear business plan articulates the vision and goals of the
founders.
 A business plan communicates to all stakeholders. They can judge
the venture’s future on the basis of the business plan.
 The business plan helps identify the important variables that will
determine the success or failure of the firm.
 The business plan is used as a selling document to outsiders.
 When and for whom a business plan
necessary
• When an individual has an idea of having a business
opportunity
• When an entrepreneur is looking for a partner to strengthen the
management team
• When n existing venture is in trouble and has to be
revitalized/rehabilitated
• When a venture is looking for funding

• When a company faces rapid challenges

 Business plan drivers
• Clear vision of purpose
• Satisfy the real customer needs and serve real
customers
• Differentiate from competitors
• Resource focus, organization and commitment
to satisfy customers needs
 Things to remember while preparing a
business plan
• One’s business should align with one’s skills

• Does one’s idea have a business model in place?

• Can we really make money with this business concept?

• Can we be focused about one’s customers are how one would

reach them?
• Will the finished product reflect well on the investor and the
entrepreneur to create an image?
• Will the idea be really adding value for all the stakeholders?
 Why business failures
• 32% - due to lack of R & D
• 23 % - due to bad idea
• 14 % - due to uncontrolled costs
• 13 % - weak marketing strategy
• 10% - bad timing
• 8% - competitor activities
Basics of Business Plan
 1. Introductory page

• The ‘Introduction’ to a plan needs to be

presented in around a page and should briefly
cover details of the legal form of the business
entity- Company, Partnership and Sole Trader.

• Precise explanation in one or two statements

what the business does or plans to do and
what is the purpose of the plan.
 2. Executive Summary
• It is a powerful tool that attracts the attention of stakeholders in general
and investors in particular.
• It includes
a) A brief description of the venture
b) Objective of the business
c) A brief description of the company’s products or services in relation to
the defined customer needs.
d) Target market and competition
e) Competitive advantage of the business and rationale for why the
business would succeed.
f) Growth Prospects
g) Strength of the management team
h) Funding Requirements
 3. Vision/Mission statement
• Vision- This statement for the venture basically refers to the
long term vision of a company, highlighting where it would
like to be in another 10,20,30 or even 50 years from now. It
charts for a strategic path for the future as to ‘where are we
going?’ It should provide a direction for the venture that
needs to be focused, flexible and feasible to achieve.

• Mission- It basically provides a purpose for its existence by

way of what it does. It gives the core purpose for the
existence of a business and its identity by focusing on current
products and service offerings, customer needs being served
and technological and business capabilities. It should be
precise within two to three statements.
 4.Business Environment and Competitive
Analysis
• Business environmental anlysis is the first step towards getting the broad clarity about a
business environment into which an entrepreneur would like plunge. It is aso called PEST –
Political, economic, sociocultural and technological
• Other two vital components – legal and ecological ones
1. What are the size of the target market segments?
2. What have been the past and emerging trends for the industry as a whole?
3. Who are the competitors and with whom one’s product/services have to compete?
4. Is the product under consideration just a fad or will it provide a long term sustainable market
5. Are we talking about a seasonal market? If so what is its period and intensity?
6. Is the industry growing at an accelerated, constant or decreasing rate? Or does it just grow with the growth of
the population?
7. What are the key factors that would influence the growth of the market and of market shares?
8. Who are the potential customers for the business products or services?
• Competitive analysis

– Captures the competitive landscape of one’s business

– Identify direct and indirect competitors

– Assesses their strength and weaknesses

– Helps in identifying key competitive advantage

 5. Market research and Analysis
• Understanding the marketing environment
• Develop a detail marketing mix
– Product
– Price
– Place
– Promotion
• Developing a marketing system
• Information sources for market research
 6.Marketing Plan
• To get a clear understanding and knowledge about target
market
• Based on market research
• Tells the sales projection and mechanism to achieve them
• Sound marketing plan reflects the better understanding of
customer needs
• Help in developing strategy for success
 7. Financial plan and funding
needs
• Funding requirement and income generation capacity
• One key purpose of writing a business plan could be raising of
funds. Therefore it is necessary to requires and estimation of fund
requirement and sources from where fund proposed to be raised.

Three major
sources of
funding

Debt Equity Grant/Subsidies

Other sources of funding for venture capitalist

• Private equity funding

• Venture capital funding
• IPO
• Private lenders
• bank
• Financial institutions
 8. Technology, manufacturing and
operational plan
• Product or service characteristics---- production,
planning and control aspect; location, equipment,
people processes, surrounding environment
• Description of product or service includes
features, contents, usefulness of the product and
service form consumer’s point of view.
• Method used for producing products and services
highlighting production techniques and cost
• Accessibility to location
 9. Intellectual property
• Two key aspects looked by investor are management
team and quality of intellectual property that can give
rise to unique advantage to venture.
• Business plan should be more focused in benefits and
application of IP rather than confidential aspects of IP.
Because most innovative technologies may not attract
the investors until it has some tangible benefits.
• Business plan should highlight process of integration
of IP with proposed product or service.
• Non-disclosure agreement
 10. Legal consideration and insurance
requirement
• Clearly understanding of various legal
requirement and compliance there of the
smooth running of the business.
• As entrepreneur on should eb aware about
one’s legal responsibilities and plan for taking
necessary step to ensure one is always on the
right side of the law.
• Entrepreneur should be clear about the whether
business will require any liscence. or approval
 11. Management team and Organisational
Structure
• The management team makes or breaks a
business.
• This section should include the profiles of
promoters, biographies of the advisory board
and key executives who matter most in
implementation of the plan.
 12.Risks, problems and assumptions
• Every business always has some kind of risk like,..
• Major risk for the startup venture may emanate
from competitors response and reaction adverse
variations in sales resulting from market response,
production related hustles more in terms of
efficiency and quality, implication of new
technology In industry and lack of understanding
clarity among management team that may result
in making new product or service not acceptable
in market.
 13. Launching a business and measuring a
plan progress
• An entrepreneur should clearly highlight the
point at which certain vital decisions are
taken.
• Strong Management team with adequate flow
of capital required.
• Various steps in progress should be chalked
about by entrepreneur and importance to be
highlighted.
 14. Growth and exit strategy
• Many startup lost in growth phase of the venture when
opportunities are before them and they lack required
preparation to avail them.
• Venture team should have clear vision about the scalability of
the venture and emerging challenges that growth would pose
so as to plan in advance strategies for growth.
• Good business plan have inbuild provision for exiting from
existing business for personal, financial and opportunistic
reasons.
• Most successful business develop contingency plan for
multiple situations and enable promoter and investor to realize
the returns along with allowing business grow and expand.
 15.Appendices
• The details to support and reinforce credibility
for the assumption made in the business plan
incorporated in the appendix.
• Contains confidential information.