Entrepreneurship PDF

Entrepreneurship According to Peter F. Drucker “Entrepreneurship is defined as a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation”. The definit...

Entrepreneurship According to Peter F. Drucker “Entrepreneurship is defined as a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation”. The definition of entrepreneurship is viewed as a change, this includes other values other than the economic ones. Entrepreneurship is the process of finding opportunities in the market place, planning for the resources required to convert these opportunities into success and to achieve long term gains. Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit. To sum up, “Entrepreneurship is a dynamic process of vision, change and creation”.  Features of Entrepreneurship: (i) Entrepreneurship involves decision making, innovation, implementation, forecasting of the future, independency, and success. (ii) Entrepreneurship is a discipline with a knowledge base theory and is an outcome of complex socio-economic, psychological, technological, legal and other factors. (iii) It is a dynamic and risky process. (iv) It involves a fusion of capital, technology and human talent. (v) Entrepreneurship is equally applicable to big and small businesses, to economic and non-economic activities. (vi) Entrepreneurship is a process. It is not a combination of some stray incidents. It is the purposeful and organized search for change, conducted after systematic analysis of opportunities in the environment. (vii) Entrepreneurship is a creative activity. Functions of Entrepreneurship:  Innovation and Creativity – Innovation generally refers to changing processes or creating more effective processes, products and ideas. For businesses, this could mean implementing new ideas, creating dynamic products or improving your existing services. Creativity is defined as “the tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others. Creativity and innovation have always been recognized as a sure path to success. Entrepreneurs think outside of the box and explore new areas for cost-effective business solutions.  Risk taking and Achievement – Entrepreneurship is a process in which the entrepreneur establishes new jobs and firms, new Creative and growing organization which is associated with risk, new opportunities and achievement. It results in introducing a new product or service to society. In general, entrepreneurs accept four types of risks namely Financial Risk, Job Risk, Social & Family Risk & Mental & Health Risk, which are as follows: (a) Financial Risk – Most of entrepreneurs begin by using their own savings and personal effects and if they fail, they have the fear of losing it. They take risk of failure (b) Job Risk – Entrepreneurs, not only follow the ideas as working situations, but also consider the current risks of giving up the job & starting a venture. Several entrepreneurs have the history of having a good job, but gave it up, as they thought that they were not cut out for a j (c) Social and Family Risk – The beginning of entrepreneurial job needs a high energy which is time consuming. Because of these undertakings, he/she may confront some social and family damages like family and marital problems resulting on account of absence from home and not being able to give adequate time to family. (d) Mental Health Risk – Perhaps the biggest risk that an entrepreneur takes it is, the risk of mental health. The risk of money, home, spouse, child, and friends could be adjusted but mental tensions, stress, anxiety and the other mental factors have many destructive influences because of the beginning and continuing of entrepreneurial activity. This can even lead to depression, when faced with failure.  Risk taking and Achievement – Entrepreneurship is a process in which the entrepreneur establishes new jobs and firms, new Creative and growing organization which is associated with risk, new opportunities and achievement. It results in introducing a new product or service to society. In general, entrepreneurs accept four types of risks namely Financial Risk, Job Risk, Social & Family Risk & Mental & Health Risk, which are as follows: (a) Financial Risk – Most of entrepreneurs begin by using their own savings and personal effects and if they fail, they have the fear of losing it. They take risk of failure (b) Job Risk – Entrepreneurs, not only follow the ideas as working situations, but also consider the current risks of giving up the job & starting a venture. Several entrepreneurs have the history of having a good job, but gave it up, as they thought that they were not cut out for a j (c) Social and Family Risk – The beginning of entrepreneurial job needs a high energy which is time consuming. Because of these undertakings, he/she may confront some social and family damages like family and marital problems resulting on account of absence from home and not being able to give adequate time to family. (d) Mental Health Risk – Perhaps the biggest risk that an entrepreneur takes it is, the risk of mental health. The risk of money, home, spouse, child, and friends could be adjusted but mental tensions, stress, anxiety and the other mental factors have many destructive influences because of the beginning and continuing of entrepreneurial activity. This can even lead to depression, when faced with failure. (iii) Organization and Management – The entrepreneurial organization is a simple organizational form that includes, one large operational unit, with one or a few individuals in top management. Entrepreneurial management means the skills necessary to successfully develop and manage a business enterprise. A small business start-up under an owner-manager is an example of an entrepreneurial organization. Here, the owner-manager generally maintains strict control over business operations. This includes directing the enterprise’s core management functions. (iv) Research – An entrepreneur is a practical dreamer and does a lot of ground-work before taking a leap in his/her ventures. In other words, an entrepreneur finalizes an idea only after considering a variety of options, analysing their strengths and weaknesses by applying analytical techniques, testing their applicability, supplementing them with empirical findings, and then choosing the best alternative. It is then that he/she applies the ideas in practice. The selection of an idea, thus, involves the application of research methodology. (v) Overcoming Resistance to Change – New innovations are generally opposed by people because it makes them change their existing behaviour patterns. An entrepreneur always first tries new ideas at his/her level. It is only after the successful implementation of these ideas that an entrepreneur makes these ideas available to others for their benefit. His/her will power, enthusiasm and energy help him/her in overcoming the society’s resistance to change. (vi) Catalyst of Economic Development – An entrepreneur plays an important role in accelerating the pace of economic development of a country, by discovering new uses of available resources and maximizing their utilization. Today, when India is a fast developing economy, the contribution of entrepreneurs has increased multi-fold.  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4  Myths of Entrepreneurship Myth #1: When you start your own business, you have more freedom in your schedule In reality, the initial phase demands an exhaustive time commitment, often exceeding that of a regular job. During the startup phase, anticipate investing the majority of your waking (and sometimes sleeping) hours into your venture, persisting for at least a year. This reality applies universally, whether you're a burgeoning self-made millionaire or a modestly successful independent professional like a writer, photographer, or shop owner. True freedom in your schedule is a reward that emerges only after your business establishes stability and profitability. Until then, expect a relentless dedication to building and sustaining your entrepreneurial endeavor. Myth #2: You need a brand-new product or service idea to succeed To find a successful business idea, make what's already there better. Don't try to come up with something completely new. Develop a clear plan for improving an existing idea, like making a better "mouse trap." By focusing on refinement instead of reinvention, you increase your chances of success. Myth #3: As a business owner, it’s cost-effective to do everything yourself Maybe at the very beginning you can take care of the books, the products, the marketing, and office cleanup, but at some point, your time is going to be more valuable spent working on the business than doing tasks within the business. Once you reach that point, any time you spend on tasks that could be delegated instead of developing new products, booking new clients, or expanding your market is a lost opportunity cost. That point can arrive sooner than you expect, especially once your sales are growing. Myth #4: Entrepreneurs are born that way Many people assume that entrepreneurs are born that way — and that only people who have certain natural talents can be entrepreneurs. However, the truth is that almost anyone can become an entrepreneur if they can learn the necessary skills. True, some people may adjust to the demands of the role more quickly, but there’s no rule that says only certain types of people can found companies. Myth #5: The only requirement is a good idea Even the very best ideas — ones with the potential to disrupt an entire industry — need proper execution to become reality. Ideas are important, but so are planning, talent, leadership, communication, and a host of other factors. Myth #6: Launching a company quickly leads to wealth Some entrepreneurs mistakenly believe that starting a business will put them on the fast track to earning substantial amounts of money — fast. Although some companies are immediately successful, others take a little more time to get there. Properly timing the expansion of the company and sustaining growth are two of the entrepreneur’s biggest tasks. Myth #7: Successful business owners go it alone Business is competitive, but it’s also collaborative. Owners—especially inexperienced new ones—who keep to themselves miss out on opportunities for learning, networking, and growth. You need other people’s input and ideas to make your business work. Myth #8: There’s a secret, “silver bullet” key to success In business, many successful entrepreneurs promote the impression that they’ve found some kind of secret key to success. However, this doesn’t take into account the entrepreneur’s previous ideas that failed; the old-fashioned hard work and patience they put in; or any of the many other factors that are necessary to build a strong company. The reality is that a single key to success does not exist. If anything, entrepreneurial success requires a keychain of different ideas, people, and resources that must come together at the right time and place. Myth #9: Quitting is for losers One final misconception is the idea that entrepreneurs have to stick everything out — no matter what. The fact is that not every idea will blossom into a sustainable company. Successful entrepreneurs often cycle through and try out many ideas before they find one that has legs. Quitting might look like failure, but really, it’s a common part of the entrepreneur’s journey and can provide incredibly important lessons. Knowing when to walk away and move on to the next idea is therefore critical.  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4  Advantages & Disadvantages of Entrepreneurship ADVANTAGES: Autonomy: People enjoy more autonomy or freedom in entrepreneurship as they invest their time, money, and efforts into the business to make it successful. They are more involved and self- driven as there is no one to interfere or ask for explanations of their decisions. Motivating: As entrepreneurs start making decisions and get successful results, they become more motivated and engaged to work hard to ensure success in their business. Flexibility: Entrepreneurship allows working without a fixed routine time that helps to organize other works with better control and flexibility. This can improve mental and physical well-being. Career orientation: Entrepreneurship allows someone to align his desire and passion into the work and incorporate his values and beliefs into the business. This can help him to move in a career path of his choice. Develop skills: Entrepreneurship involves overcoming challenges that develop the growth mindset and professional abilities. It gives first-hand knowledge and experience that helps to develop leadership skills and managerial techniques.  ADVANTAGES: Economic development: A successful venture gives a lot of scope to improve earnings by own efforts and involvement that is not possible in any jobs. There are various opportunities and ways that can be explored to gain a competitive advantage and profitability. Meeting people: When a new business is started, there are possibilities to connect with people having exposure and experience in that particular field. Interaction with like-minded people helps to focus on the work more strategically and ambitiously. New experiences: Entrepreneurship gives new experiences and challenges that are often unexpected. This helps to gain new lessons and develop problem-solving and decision-making abilities that are useful for the further growth of the business. Building your own team: Entrepreneurs have the freedom to choose their team to work with, select their clients and partners. He has the sole decision-making power about the functioning of his company, its policies, and its culture. Get full rewards: In an entrepreneurship journey, the success of a business is enjoyed by the entrepreneur with no one else to claim. One can enjoy the profit and re-invest it into the business towards further growth.  DISADVANTAGES: Uncertain income: Entrepreneurship doesn’t ensure a steady and certain income as in jobs. When in the job, there is a fixed monthly income but in entrepreneurship, the income flow is uncertain and not guaranteed especially in the early stage of a business venture. Need to devote more time: As an entrepreneur, one needs to devote a lot of time to establishing the business without having the luxury of fixed working hours. Risk of failure: The initial stages of the entrepreneur journey may be very challenging and there are risks that the business strategies may not work resulting in losses in business. Create new customers: Customers often prefer established businesses for purchasing products and availing services. Some customers often rely on public reviews and personal references. As a startup business, it is difficult to build a customer base and takes time to develop brand awareness. Financial instability: In the initial stages of entrepreneurship, there can be more outflow of money as an investment as compared to the return from business. As a self-employed person, it becomes a big challenge for financial security.  DISADVANTAGES: Greater competition: As an entrepreneur, it becomes difficult to compete with established businesses in the same field due to a lack of resources in terms of knowledge, experience, and customer support. Lack of investors/partners: Some ventures require a lot of investment but it is difficult to find investors or partners to work with due to the absence of a history of financial success. Sometimes entrepreneurs start a business in debt and have to work very hard to recover in course of time. More responsibilities: As an entrepreneur, one has to look after a lot of things related to business and take care of finances, legal issues, manpower, sales, customer support, and many other things to keep the company functioning systematically.  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4  Factors Influencing Entrepreneurial Growth  Factors Influencing Entrepreneurial Growth Economic Factors Non-Economic Factors Psychological Factors Social Factors Government actions Capital Religion Need for Labour and caste Achieveme Govt. Raw Family nt actions Material backgroun Govt Market d Withdrawal Policies Infrastructu Education of status Taxes re Attitude of respect Society  ECONOMIC FACTORS: Capital: A Capital is one of the most important prerequisite to establish an enterprise. Availability of capital facilitates for the entrepreneur to bring together the land of one, machine of another and raw material of yet another to combine them to produce goods. Capital is therefore, regarded as lubricant to the process of production. Labour: The quality rather quantity of labour is another factor which influences the emergence of entrepreneurship. The availability of cheep labour positively affects entrepreneurship. But entrepreneurship is encouraged if there is a mobile and flexible labour force. And, the potential advantages of low-cost labour are regulated by the deleterious effects of labour inmobility. Raw materials: Entrepreneurship is encouraged only if there is an adequate supply of materials and know-how. Quality of product depends on the quality of raw materials used. Easy availability of material attracts more individuals towards entrepreneurship. To a modern enterprise requires technical know how for innovation.  ECONOMIC FACTORS: Market: The fact remains that the potential of the market constitutes the major determinant of probable rewards from entrepreneurial function. The size and composition of market both influence entrepreneurship in their own ways. Practically, monopoly in a particular product in a market becomes more influential for entrepreneurship than a competitive market. Infrastructure: Entrepreneurship development requires certain basic infrastructure like power, transportation, communication and technical information. Land and factory sheds at affordable rate, adequate supply of power, water, coal, and other sources of energy, transport facilities, and other facilities should be provided..  PSYCOLOGICAL FACTORS: Psychological Factors: - Inspiration for achievement prepares an entrepreneur to set higher goals and achieve them. The important psychological factors influencing entrepreneurial growth may be outlined as below: Need Achievement: Need for achievement is the desire to obtain excellent results by setting high standards and striving to accomplish them. It is a consistent concern with doing things better. Withdrawal of Status Respect: When members of a given social group perceive that they are not respected by the dominant groups in society, this triggers a personality change (creativity) that encourages entrepreneurial behaviors. Everett Hagen attributed the withdrawal of status respect of a group to the genesis of entrepreneurship.  SOCIAL FACTORS: Religion and Caste Factor: There are certain cultural practices and values in every society which influence the' actions of individuals. These practices and value have evolved over hundred of years. Religion and cast play a vital role in entrepreneurial development. Certain cast system encourages the entrepreneurship. Religious communities like Parsees, Marwaris, SindhI’s etc seem to have an affinity for entrepreneurial Family Background: This factor includes size of family, type of family and economic status of family. Zamindar family helped to gain access to political power and exhibit higher level of entrepreneurship. Background of a family in business provides a source of industrial entrepreneurship. Occupational and social status of the family influenced mobility. Families with properties like land and house and having sound financial resources may support entrepreneurship among family members.  SOCIAL FACTORS: Education: Education enables one to understand the outside world and equips him with the basic knowledge and skills to deal with day-to-day problems. In any society, the system of education has a significant role to play in inculcating entrepreneurial values. Our educational methods have not changed much even today. The emphasis is still on preparing students for standard jobs, rather than marking them capable enough to stand on their feet. Attitude of the society: A related aspect to these is the attitude of the society towards entrepreneurship. Certain societies encourage innovations and novelties, and thus approve entrepreneurs' actions and rewards like profits. Certain others do not tolerate changes and in such circumstances, entrepreneurship cannot take root and grow. Similarly, some societies have an inherent dislike for any money-making activity. Government ACTIONS: The Government by its actions does influence the entrepreneurship development. Any interested Government in economic development promote entrepreneurship by enacting such policies and strategies. By creating basic facilities, utilities and services, the Government can create a facilitative set up to establish enterprises. Development of industrial estates, export promotion zones, special economic zones, etc. aims at promotion of entrepreneurial activities.  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4 VENTURE PLANNING VENTURE PLANNING: Venture: Venture is often use for referring to a risky start up or Enterprise Company. New venture is a business plan that gives an opportunity or chance to set up a company / business on the basis of innovative business ideas. It is a sort competition that offers an excellent chance to turn innovative idea to start up business into a solid business plan. Planning: Planning means to decide in advance what is to be done. Venture Planning is a personal assessment of your feelings and the feasibility of a venture. Venture Planning answers the question, should I be doing this and why? VENTURE PLANNING: Venture Planning does not require detailed funding, source analysis, professional opinions, entity formation or detailed market analysis. Venture Planning is development of a means of comparing various business models, usually through financial modeling to answer the following questions: Which venture concept produces the most sales, the best margins or highest net profit? STAGES OF VENTURE PLANNING: The process of venture planning involves several stages, each crucial for developing a comprehensive strategy and roadmap for a new business or project. While the specific steps may vary depending on the context and industry, here is a general outline of the stages of venture planning: STAGES OF VENTURE PLANNING: 1. Define the Project: ❑ Clearly articulate the purpose and objectives of the venture. ❑ Identify the target audience or market for the project. ❑ Define the scope and scale of the project. 2. Feasibility Study: ❑ Assess the viability of the project by examining various factors such as market demand, technical feasibility, financial feasibility, legal constraints, and environmental impact. ❑ Analyze potential risks and challenges. ❑ Evaluate the available resources and capabilities. STAGES OF VENTURE PLANNING: 3. Consider Fiscal Sponsorships: ❑ Explore the option of partnering with a fiscal sponsor, which is an organization that agrees to provide financial and legal oversight to help the venture achieve its goals. ❑ Assess the benefits and drawbacks of fiscal sponsorship arrangements. 4.Legal Aids When Necessary: ❑ Identify legal requirements and obligations associated with the project. ❑ Consult with legal professionals to ensure compliance with relevant laws and regulations. ❑ Address issues such as intellectual property, contracts, and liability. 5. Plan for Physical Facilities: ❑ Determine the physical infrastructure and facilities required for the project. ❑ Consider factors such as location, size, layout, and any special equipment or technology needed. ❑ Evaluate costs associated with acquiring, developing, or maintaining the physical facilities. STAGES OF VENTURE PLANNING: 6. Identify the Venture Impasses: ❑ Anticipate potential obstacles or challenges that may arise during the execution of the project. ❑ Develop contingency plans to address impasses, including alternative strategies and risk mitigation measures. ❑ Consider external factors such as market changes, competition, and technological advancements. 7.Develop Simple Budget & Business Plan: ❑ Create a detailed budget outlining the financial requirements for the project, including startup costs, operating expenses, and revenue projections. ❑ Develop a business plan that outlines the overall strategy, marketing approach, operational structure, and financial forecasts. ❑ Clearly define key performance indicators (KPIs) to measure the success of the venture.  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4 VENTURE PLANNING KEYS TO GOOD VENTURE PLANNING: There are four keys to good venture planning: ❑ Focus on one venture at a time in one business area at a time. ❑ Discover the opportunity first, and then evaluate how to exploit it. ❑ Develop three cases good, bad & likely for each scenario of a venture concept. ❑ Identify what type of venture you want. Each type has an entirely different model, implementation and end result. Each demands a different entrepreneurial approach and each requires different management and style. RISKS IN NEW VENTURES: Market risks – Market strength to support the venture – Trends in the market – Structure and distribution of the market competition Operational risk – Problems related to delivering the quality products on customer-satisfaction Financial risk – Changes in the financial projections/predictions SOURCES OF NEW IDEAS Consumers Informally monitor potential ideas and needs. Formally arrange for consumers to express their opinions. Existing Products and Services Analyze and uncovers ways to improve offerings that may result in a new product or service. Distribution Channels Channel members can help suggest and market new products. SOURCES OF NEW IDEAS Government Files of the Patent Office can suggest new product possibilities. New product ideas can come in response to government regulations. Research and Development A formal endeavor connected with one’s current employment. An informal lab in a basement or garage.  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4  METHODS OF GENERATING NEW IDEAS METHODS OF GENERATING NEW IDEAS /CREATIVE PROBLEM SOLVING: 1. SCAMPER: It is an idea generation technique that utilizes action verbs as stimuli. It is a well- known kind of checklist developed by Bob Eberie that assists the person in coming up with ideas either for modifications that can be made on an existing product or for making a new product. SCAMPER is an acronym with each letter standing for an action verb which in turn stands for a prompt for creative ideas. S – Substitute C – Combine A – Adapt M – Modify P – Put to another use E – Eliminate R – Reverse 2. Focus Groups A moderator leads a group of 8 to 14 participants through an open, in-depth discussion in a directive or nondirective manner. An excellent method for generating and screening ideas and concepts. 3. Brainstorming Allows people to be stimulated to greater creativity. Good ideas emerge when the brainstorming effort focuses on a specific product or market area. Rules of brainstorming: No criticism. Freewheeling is encouraged. Quantity of ideas is desired. Combinations and improvements of ideas are encouraged. 4. Mind-mapping Mind-mapping is a graphical technique for imagining connections between various pieces of information or ideas. Each fact or idea is written down and then connected by curves or lines to its minor or major (previous or following) fact or idea, thus building a web of relationships. 5. Problem Inventory Analysis Consumers are provided with a list of problems and are asked to identify products that have those problems. Results must be carefully evaluated as they may not actually reflect a new business opportunity. 6. Storyboarding Storyboarding has to do with developing a visual story to explain or explore. Storyboards can help creative people represent information they gained during research. Pictures, quotes from the user, and other pertinent information are fixed on cork board, or any comparable surface, to stand for a scenario and to assist with comprehending the relationships between various ideas. 7. Attribute listing Attribute listing is an analytical approach to recognize new forms of a system or product by identifying/recognizing areas of improvement. To figure out how to enhance a particular product, it is broken into parts, physical features of each component are noted, and all functions of each component are explained and studied to see whether any change or recombination would damage or improve the product.  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4 BUSINESS PLAN BUSINESS PLAN: Business plan is a written document prepared by entrepreneur that describes all the relevant external and internal elements involved in starting new venture. It is an integration of functional plans such as marketing, finance, manufacturing and human resource plan. A business plan is a blue print of step by step process that would be followed to convert business idea into successful business venture. BUSINESS PLAN AS AN ENTREPRENEURIAL TOOL: Provides proper guidance/direction to move on Helps in getting Finance Helps in proper communication Helps in Resource planning Helps in deciding budget Provides SWOT analysis STEP 1: IDEA GENERATION It is the first step in the business planning process. This step differentiates entrepreneur from usual business. An entrepreneur may come up with new business idea or may bring in value addition to existing product in the market. Sources of new idea for entrepreneurs are : Consumers/ customers Existing companies Research and development Employees Dealers, retailers STEP 2: ENVIRONMENT SCANNING Once the entrepreneur is through the idea generation stage, next entrepreneur is required to conduct environmental scanning which includes analyzing external and internal environment that affects business idea. 1. External environment comprises of : ❑ Socio cultural appraisal : it gives brief overview about the culture and tradition existing in society. It is comprised of values and beliefs of people which determines the acceptance of product by customer in the market. ❑ Technological appraisal : it assess various technological options available to convert an idea to product. It also provides an brief overview about technological updation. ❑ Economic appraisal : it assess the status of the society in terms of economic development, per capita income, national income, consumption pattern in the business. STEP 2: ENVIRONMENT SCANNING ❑ Demographic appraisal : it assess the population pattern of given geographic area. Which includes sex, age profile, distribution etc. ❑ Government appraisal : it assess the various legislation, policies, incentives formulated for particular industry. Flexibility of these rules determine ease for entrepreneur in terms of opening venture in particular area.. Internal environment : ❑ Raw material : it refers to in terms of availability of raw material required for the process of production. If the material availability is at distance place and is very expensive then entrepreneur should give second thought to the same. ❑ Production/ operation : it assess the availability of various machineries, equipments, tools and techniques that would be required for production. STEP 2: ENVIRONMENT SCANNING ❑ Finance : it studies total requirement of finance in terms of start up expenses, fixed expenses, running expenses etc. ❑ Market : refers to study on potential customer and target customers in market. ❑ Human resource : refers to demand and supply of required human resource in market and estimation of expenses to be incurred on human resource. STEP 3: FEASIBILITY ANALYSIS It refers to conducting detailed analysis in relation to every aspect relevant to business and determining credibility of business. I. Market analysis : is conducted to estimate the demand and market share for proposed product and service in future. Demand and market analysis is based on factors like consumption pattern, availability of substitute goods and services etc. II. Technical and operational analysis : is to assess operational ability of proposed business enterprise. Technical or operational analysis collects data on following parameters : Material availability a. Material requirement planning b. Plant location c. Plant capacity d. Machinery and equipment. STEP 3: FEASIBILITY ANALYSIS III. Marketing plan : lays down the strategies of marketing which can lead to success of business plan. Strategies are in terms of marketing mix which includes ( product, price, place, promotion ) which determines the potential demand of customers for product in the market. IV. Production plan / operational plan : production plan is drafted for manufacturing sector where as operation plan is designed for business into service sector. It comprises of strategies on parameters such as location layout, cost, availability of material, human resource etc. V. Organizational plan : defines type of ownership pattern in company, sole trading concern, family business, private or public limited company etc. VI. Financial plan : financial plan indicates the requirement of proposed business enterprise. Which includes fund flow, cash flow statement, break even point, projected ratio, projected balance sheet. STEP 4: Project report preparation : Project report is a written document that describes step by step strategies involved in starting and running business. STEP 5: Evaluation , control and review : As company operates in dynamic environment company has to monitor and review strategies and policies to stay in line with competition existing in market.  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4  ELEMENTS OF BUSINESS PLAN ELEMENTS OF BUSINESS PLAN: Cover Page Table of Content Executive Summary (summary of description of Whole plan, key points are highlighted) Introduction Page Business Description Market Plan (blueprint of Marketing objectives, strategies, functions-4P’s) Financial Plan (Budget, Investment, Working Capital, Balance Sheet, etc.) ELEMENTS OF BUSINESS PLAN: Production Plan / Operational Plan (Plant Location, Layout, Inventory, HR, Technical etc.) Feasibility Analysis (degree of ease or convenience) Future Goal Strategic Plan Appendix  Thank You ! Vividha Gurung Faculty, FMSLA, Shoolini University 4